With growth in the Sydney property market slowing, smart investors should check out another harbour city 160km north of the NSW capital, says Richard Sheppard.
A common mistake inexperienced property investors make is insisting on buying in or around their own area rather than looking further afield for opportunities that could change their financial future.
Pinpointing the markets out of a potential buyer’s immediate area that offers the best prospects for growth is possible, as trusted property investment advisors can give you access to market research from respected forecasters such as BIS Shrapnel. Right now, that research points to Newcastle being an excellent investment target. Only two hours drive north of Sydney, the regional harbour city has the best property growth forecast for any area in Australia.
Strong growth forecast
BIS Shrapnel’s Residential Property Prospects 2016 to 2019 report predicts house prices will grow six percent in Newcastle during the three years to June 2019, easily outstripping Sydney and Melbourne.
Why is this so? Well, the city has largely recovered from mining-related slowdowns of the past decade, while property vacancy rates have tightened as people leave Sydney for affordability reasons and head to regional cities.
Infrastructure development, including a new light-rail project, and significant rezoning across Newcastle is also expected to drive property price growth. The upshot is that rental returns have been strong – an important factor for investors.
Do your homework
BIS Shrapnel places Sydney’s median house price at $1,055,000 as at June 2016. By contrast, Newcastle’s median of just over $500,000 is far more attractive.
Forecasts aside, property investors must do their homework to really give themselves the best chance of long-term financial success. Investors should educate themselves about the fundamentals of the property market by enrolling in a reputable workshop or course.
Seeking advice from agents with specialist property market experience is also important. They can explain how to safely use equity in existing investments, to buy other properties, and maximise wealth.
Such knowledge – combined with the risk-management approach of taking out income protection and life insurance – will set you up to invest in Newcastle and elsewhere.
Richard Sheppard is the Managing Director of inSynergy Property Wealth Advisory. inSynergy provides professional property investment advice, property market research, specialised mortgage broking services and is an accredited investment property buyers’ agent. Visit www.insynergy.net.au or phone 1300 425 595.