If you have been considering buying a property in Sydney, now is the time to do it!
In this article, we will look at the Sydney property market and the reasons why you should be property-hunting now, plus we’ll provide some tips every house-buyer needs to know!
Why buy now?
2021 was an unusual year for property buyers. Triggered by the shortage of new homes and buoyed by low mortgage interest rates, buyers were over-borrowing and purchasing homes that they may not normally have considered.
The recent increases in the mortgage interest rate have dramatically slowed the number of new home buyers. Smart buyers, however, whether investors or home seekers, know houses in Sydney always increase in value over the longer term.
In 2021, property prices in Sydney increased at an unprecedented rate but prices slowed towards the end of the year and are slowing more, particularly with recent increases to the mortgage interest rate.
There are more properties being listed as “for sale” than a year ago. There are fewer buyers so supply is up and demand is down. House prices are reflecting this.
There were so many house buyers in 2021, people were buying without consideration of whether the property was well-priced. There was an element of “FOMO” (fear of missing out) causing almost a panic at house auctions.
Now there are more properties available and fewer buyers. Would-be house owners now have the time to be more considerate regarding their property purchases. There is negotiation over prices.
Sydney’s population is expected to continue to grow. The need for more housing will continue.
Some things you need to know when you are buying a property in Sydney:
Make sure you’ve listed your “must-haves” and your “nice to haves”.
Only view homes meeting all of your essential criteria. If you need four bedrooms to comfortably accommodate your family there’s no point in considering two or three-bedroom properties.
If you’d like a swimming pool but could happily live without one, don’t miss out on your potential dream home. Check out all potential future homes, with or without a pool.
Whether it is bought as an investment or as a home, you will probably own the property for many years. Will it suit your needs in the future?
You have or hope to have, a young family. In the years to come, you will need enough bedrooms for your growing family. You will also want ample living space inside the house for children to play, as well as a fenced-off outdoor area, for healthy outdoor play.
You have a young or growing family. In the next ten to twenty years, they will probably all fly the nest to make their own lives. Could you reuse the additional space vacated by your children?
Work from home
You may decide to start a small business or work from home part, or all, of the time. Will you have a home office/studio/workshop available for you? If not, could you convert one, or more existing rooms into a workspace for you?
Distance from work or hobbies
Do you have a long commute to work or a long way to travel for sport or to your favourite beach for a swim? You may think it’s worth the travel time to be able to purchase the fabulous home you have found. In ten years’ time, you will have grown to despise the amount of travelling you have to do and the time you waste commuting.
Like many people, you could be buying the home you hope to retire in. If your retirement is twenty or thirty years away, will you still have the same feelings about your home as now?
You may struggle with stairs and decide to live on a single floor. You may have new hobbies and need a study area/workplace within your home. You may be a keen gardener, wanting lots of outdoor space for growing flowers and vegetables.
The location of your house is crucial! It would be rare for a home buyer to declare they want, for example, a four-bedroom house but they don’t care where it is situated. We tend to look for a property in a certain location. There are a variety of considerations:
The Australian housing dream is to own a home on the water. It’s unlikely we can all live a few steps away from a white sandy beach or have our boat moored at our private riverside jetty.
The best option, for most of us, is a home within easy travelling distance from water. With Australian capital cities located on our coastline, we could certainly find a home within twenty minutes drive from a golden beach or a beautiful river or lake.
More specifically, green outdoor spaces. Aussies love the outdoors. We don’t expect to have a glorious wilderness home or a forest retreat. However, we like to be able to get to some green space not too far from home. Living in towns, our green space may be a National Park on the outskirts of a city or an inner-city park, reserve or even a golf course. A walk outdoors is good for our health and mental wellbeing. If we have children or dogs, green spaces are a necessity!
We don’t like to travel too far, or too long, to get to work. In busy cities like Sydney, most journeys involve sitting in traffic congestion or jammed onto buses or trains.
If you work in the city, look for a home within easy travelling distance of a transport hub. If you intend to drive to the nearest train station, check out the availability and cost of parking.
Sydney is cycle-friendly, with a network of cycleways. You may want to consider getting around town the cheap and healthy way!
Some areas are better suited to families than others. If you have or plan to have children, you should consider which school they will attend. Often, parents try to buy properties within the catchment area of popular schools to help ensure their children can attend.
Look out for parks and open spaces for family outings and picnics in the sunshine.
Many people enjoy a certain vibe in their particular community. You may live near a university, with a population of students. It is likely that you will find cafes, pubs (with pub quizzes!), book shops and second-hand clothes shops to cater for the locals.
Sports and recreation
Like many Australians, you probably enjoy taking part in sport. Whether your favourite pastime is golf, surfing, kayaking, hiking or basketball, you should make sure there are facilities nearby for you.
In Sydney, you will find plentiful locations for the sports listed above.
You must try to find out if any major development work is planned in your proposed new locality. If they know the area, ask your Real Estate Agent if they are aware of any major construction planned soon. You could even ask the local council if there are applications for development by your neighbours.
You will be disappointed if you move into your dream home and then have to suffer years of construction work or lose your beautiful view when your neighbour adds a second storey to their house.
Not only for your peace of mind. If you are buying at an auction, ask to view reports from property inspections. If you are buying privately, you should consider having the following expert inspections:
- Swimming pool
Major problems found after you have moved in will hit your own pocket!
Make sure the property you hope to buy is realistically priced. Compare prices with similar properties in the same area. Ask your Real Estate Agent about local house prices.
Why buy in Sydney?
There are many reasons why property in Sydney is such a great investment. First of all, the city is constantly growing. More and more people are moving to Sydney every year, which means that there is an increasing demand for property. Additionally, Sydney is one of the most livable cities in the world. It offers a great quality of life, with plenty of jobs, schools, and entertainment options. And, of course, it also has some of the most beautiful beaches in Australia. All of these factors make property in Sydney a very attractive investment. Prices are bound to continue to rise as the city continues to grow in popularity. So if you’re thinking about buying property in Sydney, now is the time to do it!
The best tip – MGM MARTIN – local Sydney housing experts!
The team at MGM MARTIN Real Estate are based in Zetland and Mascot. Locals with years of experience, we know Sydney well.
Contact us with your wishlist for your new home or any questions you have. As local experts, we can advise on property locations for schools, beaches, transport and even coffee shops.
Don’t miss out. Now is the time to buy. Contact MGM MARTIN for the best information.