{"id":14758,"date":"2017-11-16T01:00:29","date_gmt":"2017-11-15T14:00:29","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=14758"},"modified":"2017-11-16T01:00:29","modified_gmt":"2017-11-15T14:00:29","slug":"how-much-should-you-pay-for-an-investment-property-in-sydney","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/how-much-should-you-pay-for-an-investment-property-in-sydney\/","title":{"rendered":"How much should you pay for an investment property in Sydney?"},"content":{"rendered":"<p>The median house price in Sydney may have recently dipped below $1 million, but it\u2019s still about 75 per cent higher than it was five years ago.<br \/>\nAccording to the latest CoreLogic report, <a href=\"http:\/\/www.smh.com.au\/business\/property\/sydney-property-prices-slide-for-first-time-in-17-months-20171001-gysh6l.html\" target=\"_blank\" rel=\"noopener noreferrer\">Sydney property prices fell marginally<\/a>\u00a0over September to record a median dwelling price of about $900,000, a figure which includes both houses and units.<br \/>\nWhat\u2019s interesting in the latest data is that the price of houses fell 0.3 per cent over the month and 0.2 per cent over the quarter, while unit values recorded a subtle rise.<br \/>\nThe reason for this disparate result may be that there is now a huge price differential between houses and units in Sydney, with houses being nearly $300,000 more expensive than units.<\/p>\n<h3>Finding an investment-grade property in the current market<\/h3>\n<p>This affordability equation is no doubt underpinning increased demand for investment grade units in Sydney.<br \/>\nWhile the\u00a0<a href=\"http:\/\/intuitivefinance.com.au\/securing-property-investment-loan-in-sydney\/\" target=\"_blank\" rel=\"noopener noreferrer\">Sydney market<\/a>\u00a0is softening, it remains in demand with home buyers and investors alike given its economic position in Australia.<br \/>\nSophisticated investors, however, are opting to buy investment grade properties that will remain in strong demand from owner occupiers in the years ahead, while also having the ability to hold for the long-term if Sydney\u2019s market flat-lines for a few years.<\/p>\n<h3>A truly resilient Sydney property will always come at a premium<\/h3>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14757\" src=\"https:\/\/i0.wp.com\/realestatetalk.com.au\/wp-content\/uploads\/2017\/11\/sydney.jpg?resize=1024%2C420\" alt=\"\" width=\"1024\" height=\"420\" \/><br \/>\nRegardless of what the median house price is doing in Sydney, the best investment properties will always come at a premium.<br \/>\nThat\u2019s because for the foreseeable future there will be more demand than supply in the Sydney market, because of its strong population growth as well as its geographical constraints.<br \/>\nThat means that properties within inner- and middle-ring suburbs will continue to be in hot demand by buyers and investors, which will drive prices up over the long-term.<br \/>\nIn fact,\u00a0<a href=\"https:\/\/www.theurbandeveloper.com\/premium-housing-records-greatest-value-growth\/\" target=\"_blank\" rel=\"noopener noreferrer\">new research\u00a0<\/a>has found that the more expensive suburbs have experienced the strongest price growth over the 12 months to August.<br \/>\nAccording to CoreLogic, the most expensive 25 per cent of properties grew in value by more than 12 per cent in a year, compared to price growth of 4.6 per cent for most affordable 25 per cent of properties.<br \/>\n<img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14759\" src=\"https:\/\/i0.wp.com\/realestatetalk.com.au\/wp-content\/uploads\/2017\/11\/intuitive-graph.png?resize=940%2C928\" alt=\"\" width=\"940\" height=\"928\" \/><br \/>\nHuman nature means that we often desire the same things \u2013 such as living in the suburbs that offer the best amenities, lifestyle options as well as a shorter commute to our jobs.<br \/>\nAnd, of course, more demand than supply means that prices will inevitably rise.<br \/>\nSmart investors know this so they invest irrespective of the market cycle, but always with the knowledge of what makes an <a href=\"http:\/\/intuitivefinance.com.au\/sydney-property-you-should-look-for\/\" target=\"_blank\" rel=\"noopener noreferrer\">investment grade property<\/a>\u00a0and what does not.<\/p>\n<h3>Where are Sydney house prices heading in 2018?<\/h3>\n<p>There continues to be much conjecture about what might happen to Sydney house prices in 2018.<br \/>\nThe latest data certainly shows that its rampant price growth over the past five years has slowed.<br \/>\nBut does that mean <a href=\"http:\/\/thenewdaily.com.au\/money\/finance-news\/2017\/09\/04\/housing-crash-property-slump-australia\/\" target=\"_blank\" rel=\"noopener noreferrer\">Sydney prices are going to crash<\/a>?<br \/>\nNo \u2013 and nor should anyone be hoping for such a turn of events.<br \/>\nWith a sluggish national economy, the last thing we need is for our largest property market to go into freefall.<br \/>\nHistorically, that has never happened and there is no reason to suggest that it\u2019s likely to happen next year, either.<br \/>\nThe crackdown on investors has had an impact, with interest rate increases and tighter lending criteria prompting a reduction in the numbers of property investors active in the market \u2013 which is what APRA wanted.<br \/>\nThere is constant speculation about <a href=\"http:\/\/www.smh.com.au\/business\/banking-and-finance\/anz-bank-tips-two-rba-interest-rate-hikes-in-2018-20170920-gykxft.html\" target=\"_blank\" rel=\"noopener noreferrer\">where interest rates are headed in 2018<\/a>\u00a0as well, with some pundits predicting further independent increases on investor and interest-only loans by lenders.<br \/>\nThe Reserve Bank has kept the cash rate on hold for more than a year now \u2013 at its historical low of 1.5 per cent \u2013 and its commentary doesn\u2019t seem to indicate that any sharp rises are imminent.<br \/>\nSo the million-dollar question is, where are Sydney prices headed next year?<br \/>\nThere\u2019s no doubt that the slow-down has started, as it needed to happen after five years of strong growth.<br \/>\nYet that doesn\u2019t mean that <a href=\"http:\/\/intuitivefinance.com.au\/sydney-property-you-should-look-for\/\" target=\"_blank\" rel=\"noopener noreferrer\">well-located properties in Sydney\u2019s<\/a>\u00a0more desirable suburbs won\u2019t continue to attract solid price growth. The trick is to secure one before the next market cycle upswing.<br \/>\nThe median house price in Sydney might put off some buyers and investors but that\u2019s doesn\u2019t mean that investing in our largest capital city doesn\u2019t remain a sound investment strategy.<br \/>\nThe key is to understand which investment grade property suits your budget and your property goals.<br \/>\n<em>These articles originally appeared at Intuitive Finance.<\/em><br \/>\n<em><a href=\"http:\/\/intuitivefinance.com.au\/investment-property-prices-in-sydney\/\" target=\"_blank\" rel=\"noopener noreferrer\">http:\/\/intuitivefinance.com.au\/investment-property-prices-in-sydney\/<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The median house price in Sydney may have recently dipped below $1 million, but it\u2019s still about 75 per cent higher than it was five years ago. According to the latest CoreLogic report, Sydney property prices fell marginally\u00a0over September to record a median dwelling price&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":14761,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,13,25],"tags":[70],"class_list":["post-14758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-andrew-mirams","category-latest-story","category-sponsored-channels","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How much should you pay for an investment property in Sydney? - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/how-much-should-you-pay-for-an-investment-property-in-sydney\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How much should you pay for an investment property in Sydney? - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"The median house price in Sydney may have recently dipped below $1 million, but it\u2019s still about 75 per cent higher than it was five years ago. According to the latest CoreLogic report, Sydney property prices fell marginally\u00a0over September to record a median dwelling price...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/how-much-should-you-pay-for-an-investment-property-in-sydney\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-15T14:00:29+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"How much should you pay for an investment property in Sydney?\",\"datePublished\":\"2017-11-15T14:00:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/\"},\"wordCount\":763,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"Featured\"],\"articleSection\":[\"Andrew Mirams\",\"Latest Stories\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/\",\"name\":\"How much should you pay for an investment property in Sydney? - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2017-11-15T14:00:29+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-much-should-you-pay-for-an-investment-property-in-sydney\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How much should you pay for an investment property in Sydney?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. 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