For two months now, the vacancy rate in Sydney has been less than 2%. In April, the availability rate was 1.9%. It is notable that the availability rate in Inner Sydney came down from 1.9% to 1.7% in April. While Middle Sydney affirmed the trend, coming down from 2.3% to 2.1%, Outer Sydney bucked the trend, going up to 2.0% from 1.7%.
A lot of apartment projects are coming close to their completion phase and this may mean an avalanche of new home options. It is not hard to decipher that the vacancy rate will only go up in the wake of the ‘happy tide of homes”.
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An article on The Adviser talks about the anticipated decline in fortunes of the Sydney market. Overcrowding and curtailed investor attention can result in a dip in the market growth to levels equivalent to 1/5th of the present growth level. To put it in figures, house price growth, which is running close to 17%, may come down to 3.4% in the year 2016.
In an article for the website Your Investment Property, Phil McCarroll asserts that the growing hiatus between the median prices for detached dwellings and apartments could see the latter becoming a more attractive option for investors. It is notable that the differential in some of the top suburbs in Australia is getting really high.
Interest rates have come down significantly and those investors who have been in the game for a long time will vouch for how things had been a decade ago. In fact, fixed-rate loans they booked a decade or so ago still cost them a relative fortune in mortgage repayments when they compare them to certain other properties they bought a year or two ago.
With age comes maturity and the need to engage in pursuits that clear the road to the future. Smart players diversify their portfolio so that they can 1) reap the benefits of a well-spread investment plan and 2) withstand market fluctuations that erode a particular investment niche (shares or bonds or properties for example). There is a general consensus among investors that real estate is the most sought after niche for expansion of investment portfolio. I feel there are good reasons for believing the same.
Ken Raiss writes an educative piece for the website Property Update where he talks about nine essential points to remember when one ventures into real estate.
