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Sydney Property Investment Boom Rolls On

Ok, so it’s definitely a boom and Property Pay Day Graduates are winning!    Buying, renovating and revaluing or selling.

When I first started in Sydney Property investing Potts Point and Elizabeth Bay were my stomping grounds for no other reason than they were within 5 minutes drive from home (Darling Point) and were within a price bracket I could afford.

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One bedroom apartments over 50m2 were priced in the high $200,000’s and early $300,000’s, but you could still buy some apartments in the $100,000’s, the area was gentrifying quickly and it was popular with DINK’s, Pinks, and Singles – the trifecta of rental targets.

Frankly I bought all that I could and ended up with over 130 properties in this area.

So, when I returned to Sydney last year it became the obvious place for me to look to buy an apartment for my Superannuation Fund.   I could afford $550,000, but it soon became obvious that was at the bottom end of what people were paying and I was being constantly out bid.  A few months later and $550 wasn’t even enough, that’s how rapidly the Sydney market was growing.

When I read last week that this 38m2  Victoria St Apartment had been sold by McGrath’s for a whopping $684,000 it must have become obvious to everybody that the boom was well and truly ON.

Floor plan

 

When will the boom end?

Interesting thing is everybody is trying to predict when this boom is going to end.  Stop speculating.  Frankly it could end tomorrow or it could go on for years.

I started buying property in Sydney in the early 90’s in the recession we had to have.  Yes, margins were think but I didn’t know any better and profited.  And prices continued growing, on and off for over 10 years until the mid 2000’s.  Some sectors kept on growing after that and were hit hard by the GFC but if you had bought beforehand you would be sitting pretty right about now.

Sydney is still booming, Melbourne is still booming, and all the signs are that Brisbane is joining in.

If you’re a long term buyer (10+ years) what does it matter if the boom ends tomorrow?  It will be back again, it always is, and that time you won’t miss out on the best part of it.

You see most growth occurs BEFORE everybody notices it’s a boom.  Property can increase by 50% before it’s obvious to the punters that it’s “on”.  Then everybody piles on and whilst the market keeps soaring it gets trickier.  And that’s where we are now.

My guess is the market will still keep going up for a little while yet.  Enough time to get in one or two more buy and reno’s.   But it could keep going much longer than that.

More importantly even if it goes flat or down for a while it will still eventually keep going back up – it always does.

 

 

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Written by Peter Spann

Peter Spann – Film Maker | Director | Business Coach | Writer | Public Speaking Coach | Presenter | Investor.

 

© Copyright: 2014 Peter Spann – All rights reserved

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