Episode Details

Today, we are going to spend some time talking about the Sydney property market.

Even if you're not interested in investing in Sydney, there are some great lessons to be learned in this information.

Of course, many investors want to know what is happening in Sydney.

It's Australia's largest property market and price growth has stalled. People are wondering if now it the time to buy, sell, or hold.

I discuss what's going on with the Sydney property market with Ahmad Imam, the Senior Property Strategist of Metropole in Sydney.

In my mindset moment, I share with you the secret to living longer which has been proven by research. The secret is probably not what you think.

6 Things Property Investors Need to Know Before Investing in Sydney

• For some, just hearing the words 'Sydney' and 'Property' in the same sentence makes them cringe. While others will see dollar signs and opportunity.
• It really depends on your personal experience with property in Sydney and whether or not you are an Amateur investor or an experienced investor that has seen this all before.
• Let's face it, we receive so much conflicting information on a daily basis from so many different sources that at the end of the day you don't know if your Arthur or Martha.
• The reality is, if you don't keep up with the media you are uninformed and if you do keep up with the media you are misinformed. Seems like you can't win.
• Don't get me wrong some points are valid and some can be completely dismissed, so let me summarize the points and provide 6 things property investors need to know before investing in Sydney.

1 – Entry Level Price for an a Grade Asset

• When investing in Sydney you must be prepared to pay a higher entry level price than Melbourne or Queensland.
• Entry level for an investment grade property in Sydney is $600K and climbing. Compared to an entry level of $400K in Melbourne or $350K in Brisbane. That's a difference of $200K in this current climate of affordability constraints and tighter lending conditions.
• Keep in mind you can of course buy properties for less than $600K in Sydney but they would not be investment grade assets and you would be compromising on location and as a result the long-term growth potential of the asset.
• Do not assume that an A grade asset in Sydney must be a house in the Eastern Suburbs on a big plot of land. An A grade asset is simply an asset that is both strong and stable.
• Strong in that it has wealth building rates of growth and stable in that it is in a location that does not fluctuate in value. As investors, we like to see nice, stable, linear and predictable growth.
• As well as detached houses or townhouses we certainly see strong and stable growth in well located apartments in small to medium density boutique complexes in Sydney.
• Manage your expectations and do not be afraid to buy an apartment in Sydney if that's what your budget allows – as long as of course it ticks all the boxes.
• Do not also assume that a house is a better investment than an apartment if the house is 40km away from the CBD and has minimum growth potential. Yes, land is important but do not forget that not all land is created equal.
• Sydney is now a global city with a population of 5 million plus and as a result we are now starting to see it 'Manhattanising', and just like in Manhattan you can't expect to purchase a big house on a big block, in the right location wi