Sydney Property Investment 2020
House prices in the Sydney property market are predicted to rise 10 per cent in 2020 to $1.25 million, with more modest growth of about 6 to 8 per cent the following year.
Units are tipped to gain 8 per cent this year to $795,000 and 3 to 5 per cent the year after.
Fewer new unit developments are set to be built at this stage, which could push up unit prices – although construction could pick up again in 2021.
The big risk for investors in the Sydney property market is the degree of vulnerability. When interest rates eventually start coming up again, you could see prices falling by around 10%.
For some years Sydney property investors have run the risk of ending up being overcommitted financially due to relative high entry price levels and being exposed when interest rates start rising again.
Purchasing property for an investment portfolio is different to purchasing a property for a principal place of residence as you are looking at factors of return on investment (ROI) rather than focusing on lifestyle options. Working with an investment planning firm like National Investment can guide you through the range of options available, and secure a property that will help you towards your goals from day one.
Reports show that Sydney is currently facing a shortage in housing and in two years the situation is expected to change considerably. “With much of the pent up demand pressures having largely dissipated by this time, prices in Sydney are forecast to decline over the short to medium term analysts predict.
Being prepared for changes in the market is an important part of creating an investment property strategy.
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