Investing in property

If you’ve ever thought about buying investment property in Sydney, it’s never too late to get started. Property investment is a great way to take control of your financial future - especially since Superannuation alone will not allow most people to retire comfortable. Still, there’s a lot to consider before you dive into property investment. So, you’ll want to make sure you’re up for the challenge. 
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Here, we’re exploring why you should invest in property, what you need to consider before getting started and how our buyer’s agents at Wealth 360° can help.

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Why invest in property?

Control and active involvement
With real estate investment, you call the shots. You have direct control and actively participate in managing your investment, allowing you to make strategic decisions that maximize your returns.
Leverage higher returns
Real estate can provide higher returns on your original investment capital over the long term compared to superannuation alone. This is because you can borrow money to invest through real estate, multiplying the power of your savings. Rental income, capital appreciation, and tax advantages can further contribute to substantial wealth accumulation over the long term.
Diversification
Adding real estate to your investment portfolio provides diversification, reducing the reliance on a single asset class like superannuation. You can spread risk across different types of properties and locations for a more balanced and resilient investment strategy.
Inflation hedge
Real estate is often an effective hedge against inflation. As the cost of living rises, rental incomes and property values tend to increase, providing a level of protection for your wealth against the eroding effects of inflation.
Tangible asset and basic need
Unlike superannuation, real estate offers a tangible asset that you can see, touch, and utilize. Moreover, real estate relates to the basic human need for shelter and security, meaning it will always be in demand. This asset offers a sense of security and satisfaction, knowing that you have a valuable asset with potential for appreciation and income generation.
Tax advantages
Real estate investment offers various tax advantages that can improve your overall financial position. Deductions for mortgage interest, property expenses, and depreciation can help reduce taxable income and improve cash flow.
Cash flow during retirement
Real estate investment can provide ongoing rental income during retirement, supplementing other sources of income like superannuation. This can provide financial security and flexibility during your retirement years.
Relatively low risk
Investing in real estate is a wise choice for those seeking a low-risk investment option. Unlike financial markets that experience rapid fluctuations, real estate values remain relatively stable. Moreover, property values tend to increase over time, giving investors both security and potential capital gains in the long run.
How does property investment work?
If you're interested in property investment, there are three key principles you need to keep in mind: "Buy smart, boost value, and repeat". Let's break those down:
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Buy smart
This means doing your research and finding properties with great potential for growth and profit. Think about things like location, market demand, infrastructure development, and growth prospects. By making smart purchases from the get-go, you're setting yourself up for long-term success.
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Boost value
Next, you want your property to gain value quicker than the market average. Buying smart goes a long way to achieving this, but you can also actively boost value by making upgrades,  renovations, sub-divisions or developments.
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Repeat!
The quicker your properties appreciate in value and cash flow increases, the quicker you can repeat. Use your equity to finance more investments. By repeating the process, you can diversify your portfolio, benefit from multiple income streams and have options to later sell some properties, reducing your overall debt.
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More on strategy

A guide to property investment in Sydney

Once you know why you’re interested in buying investment property in Sydney, it’s time to figure out where exactly to start. In this quick guide to property investment, we’ll go through what’s involved, how to do research and ways our buyer’s agents at Wealth 360° can help.

Feel free to contact our team to schedule a consultation.

I. Understand what’s involved

Before you start actively investing in property, it’s important to understand what’s involved in the process. Of course, you won’t be able to foresee every potential scenario, but you can get an idea of what to expect in terms of the time, money and effort involved.

Time

When it comes to how long it might take to find and secure an investment property in Sydney, realise that the process could take months or even years. There are a lot of moving parts when it comes to investing like council regulations, legal obligations, supply chains and more.
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So, when it comes to time management, it’s usually best to overestimate how long the process will take from start to finish.

Money

In terms of money, you’ll also want to overestimate your budget. While you can work with expert buyer’s agents to help you avoid hidden fees and bad investments, there’s usually something that comes up financially that buyers don’t expect.
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Especially in an expensive city like Sydney, the financial side of investing in property is definitely something you’ll want to take seriously.

Whether it’s a burst pipe or you get outbid in an auction, there are many ways your money might not go as far as you think. So, as with any big purchase, it’s generally a good idea to overestimate your budget.

Effort

Another aspect of property investment that’s often overlooked by buyers is the amount of effort involved.
It takes effort to understand the property market, get your financials in order, search for a property that meets your requirements, participate in negotiations and stay patient throughout the process.
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Of course, when you hire a buyer’s agent there’s a lot less effort you’ll have to go through, but it can still be quite taxing emotionally no matter what.

But, especially if you’re opting for a DIY approach to buying investment property Sydney-wide, definitely don’t underestimate how much effort is involved.

2. Do your research

Next, once you understand a bit more about what you’re getting into when you invest in Sydney property, you’ll want to start doing your research as you get serious about your investment journey.

While there’s lots of research you can do, including market research and studying property trends, it’s usually best to leave the more nuanced aspects to experts. But, in the meantime, it’s still a good idea to do some of your own research on suburbs, prices and buyer’s agents.

Suburbs

Research the suburbs in Sydney that you may be interested in investing in. The best suburbs for an investment property in Sydney are those with a solid council in charge and where you’ll be able to charge relatively high rent prices.
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In other words, you’ll want to be able to charge enough rent to make your investment lucrative while still getting a good deal on the property as a whole. Plus, you’ll also be looking for up and coming areas with a robust council.
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We’ll talk more about some of the best suburbs for an investment property in Sydney below.

Prices

Next, you’ll want to get a feel for the average housing prices in each suburb that you research. After a few months of looking, you’ll start to notice some patterns.
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Are the property prices going up? Or do they seem to be going down? Which properties are on the market for ages? Which go to auction? Which ones seem to sell within days?
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Understanding the pricing of certain properties in certain suburbs can help you get an idea of how much you should have in your budget and what’s reasonable to spend on a property in that area.
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However, in many cases, working with a buyer’s agent to really understand what’s a good deal and what’s not is often essential.

Top 4 suburbs in Sydney for property investment

While Sydney as a whole is an undeniably great place to live and invest, the Hills Shire and a few other suburbs are particularly investment-worthy. 
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One main reason is that the Hills Shire Council is extremely well-managed and has been debt-free since 2002, operating with a surplus of $85M and zero backlogs of infrastructure projects. 

This makes the Hills Shire an amazing place to buy an investment property in Sydney as the council and public facilities are in excellent shape with plenty of wiggle room to maintain the same high level of support in the future, providing an attractive community lifestyle for residents. 

The Hills Shire is located in Sydney’s northwest and contains a handful of suburbs that make up some of the top locations to invest in Sydney including Castle Hill, Rouse Hill, Box Hill and Kellyville.

Castle Hill

castle hill property investment

Castle Hill is located in the southeastern part of the Hills Shire Council area. It spreads across 16.68 square kilometres and is mostly home to couples without children and small families living in standalone houses. However, Castle Hill offers a fair amount of medium and high-density dwellings as well. 
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  • Population: 36,399
  • Population Density: 2,178 people per square km
  • Households of Couples with Children: 49.7%
  • Average Mortgage Payment: $2,600 per month
  • Average Mortgage Payment: $2,600 per month

Rouse Hill

Rouse Hill is located in the western part of the Hills Shire Council area. It’s a small suburb, spreading across 6.41 square kilometres and is mostly home to small families living in standalone houses. However, Rouse Hill also offers some medium-density dwellings as well. 
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  • Population: 9,090
  • Population Density: 1,419 people per square km
  • Households of Couples with Children: 62.2%
  • Average Mortgage Payment: $2,600 per month
  • Average Rental Price: $550-649 per week

Box Hill

Box Hill is located in the western part of the Hills Shire Council area. It spreads across 14.97 square kilometres and is mostly home to small families and couples without children living in standalone houses. 
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In fact, Box Hill currently has only standalone houses with no medium or high-density dwellings in the area.
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  • Population: 4,687
  • Population Density: 313.2 people per square km
  • Households of Couples with Children: 43%
  • Average Mortgage Payment: $2,600 per month
  • Average Rental Price: $450-549 per week

Kellyville

Kellyville is located in the southeastern part of the Hills Shire Council area. It spreads across 9.38 square kilometres and is mostly home to small families living in standalone houses with some medium and high-density dwellings in the area as well.
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  • Population: 26,719
  • Population Density: 2,848 people per square km
  • Households of Couples with Children: 61.9%
  • Average Mortgage Payment: $2,600 per month
  • Average Rental Price: $550-649 per week
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How Wealth 360° can help you

Wealth 360° can help you buy investment property Sydney-wide, whether you’re a first-time investor or an experienced buyer. Our buyer’s agents are truly experts in their field and find deals for our clients that may even seem too good to be true.

Feel free to contact our team to schedule a consultation.

40%
Repeating clients
$200k
Saved on average purchase
$600k
Average equity on 24 months

What is a buyer’s agent?

A buyer’s agent advocates on the buyer’s behalf to source, select and buy property. Sydney buyer’s agents work with clients who might be looking to buy their first home, their forever home or an investment property in Sydney.
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Their understanding of the property market and years of experience can help buyers make better decisions and most would agree that buyer’s agents make a huge difference in the success of a property investment, in particular.

Benefits of buyer’s agents

Save money

First of all, buyer’s agents can save you money. While you may assume that avoiding buyer’s agent fees and doing it all yourself is the best way to save money, buyer’s agents more often than not use their expertise to find better deals and often save more money than they cost.

In other words, it’s important to think beyond the upfront “savings” of foregoing a buyer’s agent. Buyer’s agents are expert negotiators and know where to find hidden gems that you won’t have access to without them.
Long story short, buyer’s agents are amazing at saving clients’ money, and sometimes even making money for their clients.

Save time

If you have any experience buying investment property in Sydney, you know that it takes a lot of time and effort to get it right. Especially if you’re planning on a DIY approach, expect the journey to become a full-time job.
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Instead, buyer’s agents do all the legwork for you by sourcing properties, dealing with the contracts, negotiating prices and more. All you have to do is check-in along the way and make the important final decisions.
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So, if you want to save time (and remember, time is money), you’ll definitely want to work with an experienced buyer’s agent to help you buy investment property in Sydney.

Experience and expertise

While some people are able to DIY their property investment strategy, it takes years and years to cultivate the expertise and experience you need to truly know what you’re doing.

Buyer’s agents study the market and work with real estate agents, property lawyers, contractors and councils day in and day out. They have intrinsic knowledge of the property landscape that’s impossible to get on your own.

The Wealth 360° difference

Wealth 360° stands out from other buyer’s agencies for two main reasons -- we always give back and we’re in it for the right reasons.
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Every year, we donate generously to various non-profit organisations to pay it forward and share our good fortune.
Not only do we believe that the work we do to help others to invest in their communities and invigorate suburbs all around Sydney, but we also are passionate about helping people build lasting wealth for their families for generations to come.

In short, Wealth 360° is in it for the right reasons. While some promote this idea that the main reason you should buy investment property in Sydney is to get rich, we’re in this business for a deeper purpose -- to strengthen families and communities through wealth creation.

Interested in buying your first investment property in Sydney? Looking to build upon you’re growing property portfolio?

Book a FREE Strategy Session consultation with our experiences Sydney Buyer's Agents today.

FAQs
What is a buyer's agent?
A buyer’s agent advocates on the buyer’s behalf to source, select and buy property. Sydney buyer’s agents work with clients who might be looking to buy their first home, their forever home or an investment property in Sydney. Their understanding of the property market and years of experience can help buyers make better decisions and most would agree that buyer’s agents make a huge difference in the success of a property investment, in particular.
What are the benefits of a buyer's agent?
You should use a buyer’s agent when you’re looking to purchase a property. Buyer’s agents work with first home buyers, experienced investors, and everyone in between. With an ever-changing real estate market, it’s smart to hire a buyer’s agent any time you’re ready to buy land or property.
How do I select a buyer’s agent?
To select the best buyer’s agent for you, start by understanding what exactly you’re looking for from the type of property you want to buy, the reason you’re in the market, and your maximum budget.Then, you can start doing some research by hopping online and talking to friends and family.Finally, you’ll set up a consultation to get to know the potential candidates. Make sure your values align and that you get along. Buying property is no walk in the park, so you need someone you trust on your side.

Book in your free Strategy Session to get started

Email
info@wealth360degrees.com
Phone
1300 036 360
Address
Suite 607, 12 Century Cct, Baulkham Hills, NSW 2153
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