Should I buy now or wait?: A property Q&A for first-home buyers and property developers in Sydney

Australia’s property market has experienced a considerable change in the last two years with the Australian Bureau of Statistics (ABS) reporting a significant shift towards the construction of more high-density buildings.

This could be good news for first home buyers, investors and property developers in Sydney. This, in turn, creates purchase flexibility due to the cost and availability of land as well as, Australia’s strong growth in population across its capital cities.

So the big question is – should you buy now or wait? This is a matter that can be decided based on a couple of factors. In order to make the decision less stressful, here are a few questions to consider (which we have answered for you):

Q1: How do I know I’m making the right decision?
Q2: When is the right time to buy a property?
Q3: Are property prices dropping in Australia?
Q4: What areas are booming in Sydney?
Q5: Should I buy a house or off the plan apartment for my first home or investment property?
Q6: Should I invest in upcoming Parramatta developments?

Q1: How do I know I’m making the right decision?

A: Yes, buying a property is no small decision. Therefore making the choice to buy a property takes a lot of consideration.

A well-informed decision involves:

• Weighing out possibilities
• Assessing your current financials
• Discussing options with your family or loved ones

There is no right or wrong answer when it comes to buying a home or investment property for the first time.

Whether you are an owner/occupier, have a family, or are simply looking for a lucrative investment property, there are various reasons that could impact your decision of when and where to buy.

Thinking of an investment? maybe consider developments in the Parramatta region, or just on the outskirts. Being the city’s second largest central business district, suburbs on the outskirts of Parramatta, such as Westmead and Mays Hill, are also growing in desirability. Given their close proximity to the infrastructure and amenities – from public transport to shopping centres – these suburbs present a wealth of opportunity for owner/occupiers, families and investors.

Q2: When is the right time to buy a property?

A: Australia’s current market is considered a ‘buyers market’ meaning there are more properties for sale than there are buyers. This is good if you are looking to buy your first home.

The market is filled with a variety of options catering to everyone’s needs, with property developers continuing to build off the plan apartments, multi-dwellings and homes.

For investors, the right time to buy is when financials are ‘right’ and when it best fits with your long-term plans. However, the property market fluctuates and while it may be considered a good time to buy, even experts cannot time or predict the market.

You need to deduce when the time is right for you!

Q3: Are property prices dropping in Australia?

A: In the last 12 months, there were reported declines in property prices across Australia, with Sydney being the hardest hit, experiencing its largest annual fall since 1990.

Sydney’s property prices have dropped by 7.4% but there is no telling if prices will continue to drop further or do the complete opposite.

This is why it’s best not to completely rely on the market when wanting to purchase a property. You need to decide when it is right for yourself and your family.

Major property development companies in Sydney like Cite Group are always building modern dwellings for young couples and families. Off the plan, apartments are also readily available if you are in no rush. You could be saving your dollars in the meantime!

Q4: What areas are worth considering in Sydney and why?

A: If you are just entering the market, a great location to invest in would be Western Sydney’s greater region which encompasses:

• Parramatta
• Liverpool
• Baulkham Hills
• Blacktown

These areas are new growth hubs and are expected to continue to boom due to upcoming developments and transformations.

Liverpool will be benefiting from the new airport being developed at Badgerys Creek, while Fairfield can also be an option worth looking into with many new transport and infrastructure enhancements.

Sydney is growing significantly and at a fast pace which means its boundaries are becoming more redefined. Sydney’s south-west and greater western regions are certainly experiencing a boom in the property market which is particularly a positive factor for both investors and first home buyers.

 Q5: Should I buy a house or off the plan apartment for my first home or investment property?

A: The ABS data has revealed that in Australia the construction of attached dwellings has significantly increased from 30% of the total value in 2009 to 45% more recently.

This means you will have more bargaining power when looking for a property to purchase especially within areas where there is an oversupply of high-density dwellings.

If you are looking to purchase a property the choice lies within the needs of yourself and family, with plenty of areas available and options including:

• Double storey houses
• Units
• Off the plan apartments

Buying off the plan apartments has many benefits including; saving on stamp duty, cheaper sale price than the final price after completion, brand new apartment, deposit interest paid back to investors, new facilities and local amenities.

Q6: Should I invest in upcoming Parramatta developments?

Yes. Parramatta CBD is taking on a major transformation over the next five years including both public and private property investment. This means there will be more appealing options for buyers. Not only is this limited to the suburb of Parramatta, but also extends to the city’s outskirts.

Whether an investment property, owner/occupier or somewhere to raise a family, Parramatta, and suburbs within close proximity, can serve either purpose. It is the geographic centre of Sydney – right in the junction of the east and west and is just a short thirty-minute train ride from Sydney’s CBD.

With this new growth comes a range of industries in the surrounding area including:

• Finance
• Healthcare
• Education
• Property
• Retail
• Business services

The suburb of Parramatta has many other advantages which could be appealing for your next home/investment. With a highly skilled workforce as well as offering various secondary and tertiary educational facilities, it could the perfect location for your career and your children’s education!

Living in Sydney comes with the need to transport all over the city. With amazing and convenient public transport, choosing a Parramatta development could be your ultimate choice. It doesn’t end there. The new light rail development is also going to be a great addition to the area, creating a fast connection between CBDs, Western Sydney Airport and the Westconnex Road project.

Hopefully, this Q&A helped you gain an insight into Sydney’s property market and whether or not you should buy now, or sit back and relax!

If you are considering buying property within Sydney, Cite Group has a range of high-quality residential buildings in prime locations. We understand property and understand your needs!

Contact us now or call 8488 5828 for more information on our locations and upcoming projects. Who knows, it may be the one for you!