Sydney Property Market – as volatile as the share market?

There has been a lot of speculation and media reporting over the past couple of months that Sydney is an over heated and over priced bubble waiting to go POP.

With the median price of Sydney now reported to be between $900,000 – $1,000,000, buying an investment property or even a home is getting beyond the reach of many would be purchasers. In a market that is potentially volatile, it’s a lot of money at risk.

The solution to the over priced and unpredictable Sydney market is the cooler, more stable regional markets. Locations such as Lithgow, Bathurst, Orange, Dubbo and their surrounding townships. While capital gain is great, you can’t live off it.

You need cash in retirement, and to achieve this outcome you need to limit your exposure to vacancies.

How do you do this?

By having either multiple tenants in the same building or multiple properties. How do you afford multiple properties when you can barely afford to pay the mortgage or the rent in the one you are currently living in? Find cheaper markets! If you squint hard enough, you can see beyond the glare off the Sydney concrete to the alluring countryside that Regional NSW. Just because these areas are not on the front page of the paper, doesn’t mean that there’s nothing happening in property out side of Sydney.

Savvy Investors and those building SMSF property investment portfolios have long realized you need a broad investment strategy. It needs to be affordable and generally self-sustaining. Investment in Regional property markets, as close as the central coast or closer to the QLD and VIC boarders offer a huge range of options with some great untapped affordable regions for investment.

Understanding what drives the local economy and where the market is in the property cycle is critical.

There are many pitfalls to property investment and timing is important. Engaging professionals to guide you through buying in regional markets is wise, especially in unfamiliar territory. Selling agents are not always the best guides as they represent the opposition (the Vendor). Personal Buyers Agents are becoming the norm and are engaged by first time investors and those with growing portfolios, often their experience and expertise will save you a lot of time and money, as they can go through all the due diligence on your behalf, and they can negotiate much more then their fees off the asking price.