When to buy an investment property in Sydney 2022

So you’ve decided that you’re in a position to consider adding an investment property to your portfolio, but hesitation on timing is holding you back. You ask yourself – when should I buy that investment property?

The reality is, the sooner you can buy, the better. Current trends in the property investment market suggest that property prices will continue to rise further in the years ahead. Keep reading to discover some of the key factors to consider before delaying on your next property investment.

Interest Rate Rise Good for Apartment Market

With the RBA raising interest rates for the first time in 11 years, there has been a lot of uncertainty regarding whether or not this will hinder people’s plans to buy property. However, it is predicted that higher mortgage costs could result in a boost to the apartment market, due to the significant price gap between houses and units.

The current gap is sitting at 41 percent, with the median house price in Sydney at $1,410,128, compared to $830,534 for a unit. This considerable difference in the median house and apartment prices, combined with rising interest rates, has priced many out of purchasing a stand-alone house, leading to increased demand for apartments as a more affordable alternative.

There has never been a better time to invest in an apartment, with property prices likely to be at the lowest they ever will be ahead of an explosion of demand and a potential shortage of units for sale.

Low Vacancy

Vacancy rates in Australia are continuing to fall in Sydney’s rental market, with Sydney currently sitting at around 1.4% amidst a national rental shortage. As an investor, one of your main factors to consider is the ease in which you can find someone to occupy your property.

Sydney’s rental market is currently extremely competitive, often resulting in an increase in asking rents. It also sees many renters offering to pay rent in advance in order to secure a property.

This puts you in an advantageous position as a landlord, and allows you to purchase your next investment property with confidence knowing that you likely won’t have any trouble finding a tenant, or deal with unnecessary periods of vacancy.

Rise in Tenant Numbers as Borders Open

As the borders reopen post-pandemic, Australia is expected to see the return of thousands of international students and immigrants. This will further increase the demand for rental properties around the country.

While it may take some time before migration returns to previous highs, areas close to employment and education hubs will see increasing demand following an influx of new and returning residents.

When to Buy an Investment Property

If you’ve considered the above factors and are ready to stop delaying, the next step is to find the right property that will ensure you put yourself in a strong financial position for years to come.

Purchasing a brand-new off-the-plan apartment from a trusted developer is one of the best ways to ensure you are maximising your savings, allowing you to confirm your purchase price prior to construction and subsequently avoiding any potential increases as the project progresses. You can check out our Ultimate Guide to Buying an Apartment in Sydney, as well as our Ultimate Guide to Buying Off The Plan for more information.

ALAND is proud to maintain a 100% completion rate, delivering high quality apartments that are built to the highest standard and maintained long after completion. Learn more about ALAND today.

Head to our projects page to discover our current projects, or contact us now and speak to our expert team ready to help guide you through the Sydney property market.