This is where you can nab a bargain property in Sydney

This is where you can nab a bargain property in Sydney

Buyers will need to look further west in order to find a bargain, western Sydney agents say. While the western Sydney market has stabilised considerably following a boom period late last year, buyers will be hard pressed to find anything in their favour, with prices remaining consistently strong across the region. “I don’t think there is such as a bargain anymore. If you are looking for a bargain you have to go [further out] west,” western Sydney real estate group Starr Partners’ Ramin Rahimi said. “The further west you go, the more affordable prices become.” Despite the bad news, there is a glimmer of hope for buyers, with Mr Rahimi highlighting Pemulwuy as the town where a bargain would most likely be found. “Pemulwuy has strong growth because it is an established area which is expanding. There are a number of schools and parks in the area and prices are still relatively affordable, so it would be your best chance of finding a bargain.” While the western Sydney region is still experiencing a period of growth as a whole, a reduction in the number of Chinese investors, coupled with uncertainty surrounding rates decisions has seen the market settle. “A lot of buyers are really confused,” Mr Rahimi said. “It’s to do with rates; it’s to do with Chinese investors not being able to borrow as much. “If the interest rates go up, people are unsure whether they will be able to afford their home.” It appears however, that the stabilisation within the market hasn’t necessarily translated into cheaper prices. Homes within the region are still selling for well over their reserve price, while the clearance rate for last weekend was a respectable 80.4 per cent.   By: Owen Roberts Published: August 12,...

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How this savvy Asian family amassed 10 investment properties

How this savvy Asian family amassed 10 investment properties

Homebuyers are adapting to Sydney’s increasingly out-of-reach house prices in many different ways and the Hew family’s approach is one of them. Rather than focusing on finding their dream home, the family has decided to acquire as many investment properties as possible in locations where their money can go further than it would in Sydney. They have bought properties on the Central Coast, in Queensland and northern NSW and recently signed contracts on their 10th investment property. Dad Andrew Hew, an IT worker, said they may buy more properties. “There is lots of demand for Sydney properties and the downside of that is that you need a lot of cash on hand to get into the market,” he said. “It made more sense to me to purchase in cheaper markets where … it’s easier to negotiate a discount off the purchase price.” Their strategy has been to target suburbs with low prices but high rents. This keeps mortgage obligations down, allowing them to continue getting loans. “The trick is to buy properties for under their market value. That way you already have some equity in the home.” By: Aidan Devine Published: July 23,...

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Avoid these five common mistakes when investing in property

Avoid these five common mistakes when investing in property

Property investment can achieve good long returns but you can increase of your chances of success if you avoid these five common mistakes. Property investment company Nieuvision CEO Rick Nieuwenhoven said property was an attractive wealth creation strategy but even experienced investors could make mistakes. He reckons these are the common mistakes for property investors:   1. FEAR OF DEBT Mr Nieuwenhoven said many potential inventors feared debt and didn’t do enough research about how much it would actually cost them to buy an investment property. It was important he said to work out a clear investment strategy plan about what you wanted to achieve in the next ten years. He said investors should do the research, really understand why they are taking on the debt, what the benefit is for them and the actual outcome. He also advised investors to take out income protection insurance so they were covered for all possible scenarios. Property investment can achieve good returns if you avoid some of the common mistakes.   2. IMPATIENCE Mr Nieuwenhoven said in the current climate, investors should hold onto a property for at least ten years or one business cycle. “This long-term strategy will likely lead to better wealth creation,’’ he said. Mr Nieuwenhoven said it was a common mistake by investors to sell before they had a chance to capitalise on the property. The latest CoreLogic Pain and Gain report released this week revealed that 11.8 per cent of investors who sold in the March quarter did so at a loss, compared to 8 per cent of owner occupiers. Mr Nieuwenhoven said often owner-occupiers held their properties for longer than investors, allowing the property time to appreciate in value.   3. BACKYARD PAROCHIALISM Mr Nieuwenhoven said this was a common problem with first time property investors, who only bought where they lived. He warned this was often buying based on an emotional decision and that was not the best way to approach property investment. “From my experience only about 10 per cent of people who are buying in their own backyard are buying in the...

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