Australian Property News

Now is the moment for cashed-up Sydney investors

Posted on Wednesday, June 15 2011 at 3:32 PM

Sydney's housing shortage combined with interest rate stability, increased immigration and vacancy rates below one per cent will continue to strengthen Sydney property investments, according to Angus Raine of Raine and Horne.

With a decline in supply of more than 25,000 new houses per annum over the recent decade, half the output of the 1999-2000 period, according to the latest ANZ Australian Property Outlook, now is the moment for cashed-up investors, said Raine.

He said quality homes close to shopping centres, schools and public transport are the key success factors for a property investment.

"Lifestyle attributes are also a significant obsession for many Sydney-siders, and particularly Generations X and Y, so consider a location that is close to restaurants, café strips or the beach," said Raine.

"If you find a quality home that ticks plenty of boxes, then it is a fair bet you'll have secured a property investment that can potentially generate consistent cash flow and long-term capital growth."

While the housing shortage is one of the factors driving property prices and rentals, it's not sustainable, said Kent Lardner of PriceFinder.

Lardner said medium and high-density housing in infill areas are the faster and more cost-effective solution to new housing suburbs on the fringe because they don’t require new infrastructure.