Sydney property investors set for a lucrative year ahead

Hundreds of property industry professionals in NSW are confident that the next quarter will deliver healthy returns to investors, projecting the most positive outlook of all states.

The poll conducted by ANZ in collaboration with the Property Council of Australia, saw respondents grading New South Wales at 149 index points, far more than a “neutral” score of 100 for the March quarter.  

The Property Council’s state Executive Director, Jane Fitzgerald, explained that industry esteem had almost reached a six year high, “indicating a strong lead into the New Year”.

“The survey shows that the NSW industry is strong across all sectors in terms of capital growth expectations,” she added.

Another property expert that has full confidence in the NSW housing market, particularly in Sydney is Mozo’s Steve Jovcevski. He’s expecting to see Sydney prices lift by around 7% or 8%.

“Just look at the scarce supply of homes, evident in low auction numbers and high clearance rates compared to a couple of years ago. There’s a very high demand right now among buyers, especially around those suburbs fringing Sydney,” said Jovcevski.

As for interest rates, his bets are on them staying low compared to the higher levels Aussies were experiencing years ago.

"Even if providers continue to hike investment loan rates this year, 2017 will be a lucrative year for those invested in the Sydney housing market," he added.

3 tips for Aussie property investors

1. Don’t rely on rental returns. Only borrow what you can afford to make in mortgage repayments yourself, excluding rent from tenants. You don’t want to risk defaulting on your loan if your property stays unoccupied for a period.

2. Be resourceful. Find an accountant with expertise in property investing, so you can claim what you’re entitled to through tax breaks like negative gearing.

3. Nab a low rate. As Jovcevski mentioned, interest rates are still competitive and relatively low, so don’t pay more in interest than you need to. Switch providers at Mozo’s dedicated investor page, where hundreds of loans are listed by side for comparison. Or, seek some expert advice and guidance from Jovcevski here for an obligation-free callback.