Sydney Headed for Further Value Growth
In an article for the website Smart Property Investment, Vivienne Kelly asserts that despite the properties being relatively overvalued in Sydney, one can certainly experience further value growth- and instantly too!
Buying further away from the CBD
She talks about the virtue of buying when the market plateaus but at the same time believes that Sydney can offer great profit to investors even now. Ideally, investors should look beyond the close-to-CBD areas.
Those Sydney suburbs, which are strategically located, will turn out to be an unaffordable buy soon and it will be areas further away from the CBD which will be the new gold dusts for ‘value growth’ seeking investors. Areas close to the 2008 postcode may fit the bill best.
Buying the ‘market position’
Kelly quotes an industry expert who believes that good investors always buy market positions rather than properties. He further narrates his own story, citing how he paid a less than decent sum for a property only 6 kilometres from the CBD, asserting that the same amount of money will buy him an equivalent property today, nothing less than 20-50 kilometres from the CBD area.
You can read the original article here.
Welcome to a paradoxical situation!
This is a great paradox in my opinion. Imagine the mutually exclusive territory of two property market gospels. One which says that we should buy away from the suburbs registering great value growth.
And another which says that location is the key and buy only where good location is. Now, what if the really great location (served by multiple industries and town planning initiatives) lies only in the big-selling areas? think!