Is now a good time to buy in inner Sydney

Hi All
I would be interested on what you think of Sydney market, with rents on the rise I thought I would start looking at older style units in smaller complexes close to city.


I like Bondi.

Can anyone out there give me an idea on yields, would like to hear from people who live in Sydney.

I am planning a trip later this year.

Any comments would be appreciated.

Cheers, AL

 

Yo AW,

Yields in the East and Lower North tend to be lower than elsewhere; usual reasons: exclusivity, demand, etc.

I actually just settled last Friday on a property only a few minutes from the city. Honestly, I'm not sure why I bought it, I'm not sure if it's a good time, but it seemed opportunistic and I got a reasonable deal. I understand it will be negative cashflow by a large margin (rental being only 50% of costs) and this would be seen as a typically high cashflow type of property.

I'd say most yields for typical properties in the East would be sub-5%. I'm sure there are many above that, but being reasonable, and especially Bondi, you'll be talking 3-4%.

Good luck.

 

AL

Is now a good time to buy?
I'd say that now is a better time to buy than last year or the year before because there is less competition from other buyers

Rental yields vary depending on location, condition, age of the building etc.

I haven't been following the market recently but heard from some people
that their inner city apartments were getting around 7% yields.

Bondi should be around 4-5%
Generally units have higher yields than houses.

I also came across a report that shows average yields for city suburbs
Top inner-city rental yields - realestate.com.au

Cheers

 

Thanks for replies.

I ended up contacting a friend in Sydney and he has pretty much confirmed what has been posted. The yields are still too low for me to jump in.

Cheers, AL

 

Maybe speak to Jacque about her experiences in the lower north shore. I think she's getting better yields for her clients.

 

Hi AL

Depending on your budget, 5% yields are now easier to find, especially units.
I don't know what your strategy is, but don't base it merely on yields. Any investment should be a balanced combination of returns, your capacity to service the loan (and subsequent cashflow) future growth and the usual fundamentals of any investment property (proximity to transport, infrastructure, age and condition of building etc etc)
I still like the Lower North Shore and believe it's growth rates and yields to be comparable to both the East and Inner West.

 

Hi Jacque
appreciate comments. I will be looking at the big picture.

Cheers, AL