What Some Sydney Property Developers Won’t Tell You: Our Top 3 Tips for First Time Investors
Sydney property developers have been in high demand for the past few years due to the growing population and booming economy. As a result, purchasing an investment property has been a popular option to increase individual wealth and income. Even though property investments can be more stable in comparison to other markets, especially on a long-term basis, there are still risks involved and things to consider.
Read our top 3 tips for first time investors:
- Do Your Research
When it comes to real estate, we all know location is king. To see a long-term return in investment, you must purchase in areas that are likely to increase in value in the future. Researching areas of growth, locations with planned infrastructure and developments such as shopping centres are a good indication of future demand. It is important to review not only the property itself but also the surrounding neighbourhoods. You must also consider factors that would be important to potential future tenants such as good schools and proximity to public transportation.
- Consider Your Cash Flow
For first time investors, properly managing cash flow can be challenging. It is essential to calculate all costs such as:
- Upfront costs (including initial deposit, stamp duty, legal expenses such as conveyancing)
- Ongoing costs (including mortgage repayments, strata and other levies, and monthly insurance)
It is important to consider all outlays when evaluating your finances and including them within your budget for a realistic evaluation. One of the most imperative of these is the expected period of vacancy when looking for tenants, or in between tenancy arrangements, i.e. one contract ending, and another in the midst of being signed. This potential vacancy period can range from one week to months, which means that if the property is not being rented, it is crucial investors are still able to meet mortgage repayments and other expenses.
- Select The Right Sydney Property Developer
Many properties are bought off-the-plan, meaning that you pay the deposit before or during the construction of the property. With this, there is high risk involved if the property developers do not complete the development.
With so many Sydney property developers, which one do you trust with the development of your property? It is important to select a reputable company that has proven to consistently develop high quality projects on time.
Cite group is a dynamic and rapidly growing company focusing on new residential buildings in prime locations. Having developed an extensive portfolio, we undergo extensive research and development prior to the commencement of any project. This includes assessing growing trends and what the market is after, areas that are in the most demand and sites that are strategically located. We recognised the growing potential in Sydney’s western suburbs, as demonstrated through our current projects Paperbark, Hannah and Westvale.
To find out more about our current projects, Contact Us.