Is Sydney still a good place for real estate investment?

Is Sydney still a good place for real estate investment? That is a good question. Some news came out a year ago saying that the progress of property selling in Sydney is quite slowing down. Well, maybe that is just a prediction. As a matter of fact, there is no concrete evidence that real estate investment is no longer good in that area. In fact, still a lot of potential buyers look for properties either for personal use or for profit in Sydney, where the Central Business District is located.

Of course, most people like to live in the metropolitan area wherein establishments are just around and few blocks away. Those people who are buying properties are the ones with money. They might be working at the CBD and prefer to live in the area wherein work is accessible by train or maybe walking distance.

Surveys conducted recently show that a lot of people prefer Sydney if ever they will buy or rent a place someday. They also think that this place is perfect for working individuals. It is no surprise that people still consider this place as one of the best locations in Australia.

Well, who can blame them? Sydney is near shopping malls, churches, parks, hospitals, corporate area, local government offices and train stations. Real estate properties in suburban places can definitely bring higher profits since the selling or leasing rate is quite pricey and you are paying for the convenience when you purchase or rent a property in Sydney.

Whether it is an apartment, condo unit or house and land, you must consider the location since it is an important factor in choosing a place for investment.

House Flipping

If you are watching home renovation shows or channels, you might be familiar with the term “flipping”. Flip concept is about buying a used, old house then reconstruction or remodeling is done in order to sell the property right away.

Nowadays, a lot of real estate investors do this technique since it is proven to be an effective way to earn a profit from property selling.

Buying a knocked-down house for a very affordable amount then having it renovated with a low to middle range budget and sell it for a higher price which could be double or triple of the original amount before restoration or make-over took place.

But before considering the flip concept, you must think about the pros and cons of it. Also, do not forget about the “ROI” or Return on Investment. The common mistake of flippers or developers is they spend too much on renovation and anticipate that they can sell it quickly and earn more than they spent.

That is absolutely wrong. If you really want to invest in real estate properties like purchasing second-hand houses, you have to check first how much time and money you need to spend on refurbishing the place. Make sure that it is worth every penny and effort.

If you are going to reconstruct the whole structure, know that you will use a lot of money to finish the project. Make a feasibility study beforehand about the possible income returns then decide.

Real estate investment is exciting but also risky. Some people can be victorious in this field and some are not. You just have to know the basics of property investment and continue learning as your career goes. Keep in mind all the important points and factors to be considered to avoid making mistakes in the future.

Guidelines in choosing a property for profit

Guidelines in choosing a property for profit

Accessibility and location

Potential buyers or tenants will definitely choose a place where they can get anything they need or go to the places they should go without any hassle. It must be near establishments or at least the important places such as hospitals and schools or offices.

Some people may choose living in gated communities like villages wherein 24-hour security is available. Of course, who does not want to feel safe, right?

Disaster-free

It is possible to check if the structure you are eyeing to purchase stands on a fault. So, if you are aware that it is on an earthquake-prone area, then do not buy it.

Another one to avoid is the flood-prone streets. You may ask around the neighborhood to know flooding history or observe during the rainy season if possible.

Safe from pests and wild animals

Australia is known for animal attacks and creepy crawlers so, living near the woods or any remote area is not a good idea. Even if you are the adventurous type, you might need the advice of locals before deciding to relocate in a new surroundings.

Property Tax

In some countries, the rate of annual real estate or land tax depends on the location. It may vary from one city to city. The properties near the metropolitan area is higher than those far from the town.

It is possible to find a perfect property where you can feel secured and at ease. You just have to be patient and exert more effort to find what you are looking for.