ARE GOOD INVESTMENT OPPORTUNITIES STILL AVAILABLE IN THE SYDNEY MARKET?
Nathan recently ran a webinar heading into the 2016 property market. A participant asked the following question about the Sydney property market:
“As we all know; the Sydney market has hit a peak. I do not see any opportunities there any more. What do you think of it? Do you recommend other markets? If so, where?”
DIG DEEPER INTO THE SYDNEY PROPERTY MARKET
Nathan says, just because you can’t find properties in Sydney, this does not mean there are no opportunities there. Over the past 12 years, Nathan has been buying properties from all sorts of different markets each year. Some opportunities within Sydney include: building houses on cheap land, buying two-bedroom apartments beginning at $300,000 with a rental yield of 5%, and buying in the surrounding areas of Sydney, such as on the central coast.
EXPECTED GROWTH IN SYDNEY
Nathan believes that throughout 2016, there will still be some growth in Sydney, but it won’t be the type we’ve seen over the past 5 years or so. Some markets will go up, he says, but some of the high-end markets will peel back a little.
OTHER AREAS OF GROWTH
Nathan says that in Queensland, some pockets will have good growth, where others will remain stagnant. Some may grow in 2017 and 2018, so even if nothing much happens this year, there is still strong potential for growth in the near future.
LET’S REFER BACK TO 2003
In 2003, the Sydney market peaked and then crashed. No construction happened to keep up with the population growth occurring. Nowadays, a significant under supply of housing has provoked a construction boom that is sure to add further value to Sydney markets. Nathan does not predict a market collapse in the near future and believes there are still opportunities for growth.
Have you recently found any good growth opportunities in Sydney? Please share your experiences in the comments section below.