To Invest or Not to Invest, That is the Question - Part 3

Part 3 - Property Investment in High Interest Rate Environments

In Part 3 of investing in property in a high interest rate environment and assessing your personal suitability to do so, we continue to draw upon the financial and economic wisdom gleaned from Arjun Paliwal of InvestorKit and Redom Sayed of Confidence Finance’s whitepaper, ‘5 x Rules for Investing in High Interest Rate Environments.’ 

Another of Paliwal and Sayed’s rules states that no matter the market, there is always something somewhere that is growing in real estate investment terms. Sydney has many markets that are growing at different rates at different times. By observing location-specific fluctuations over time, seasoned investors often become more disposed to diversification of property assets by splitting properties across different locations. 

Sentiment plays a huge role in what happens in any market, and the property market is no exception. The effect of a global pandemic and what has seemed like an unremitting interest rate up-cycle created fear and confusion in the market, sparking a downturn in prices. The fact that Australian households are carrying far more debt than a decade ago means the speed in which interest-rate- associated price changes occur and market shifts happen is far quicker. 

Regardless of these negative impacts, data shows that interest rate rises have not correlated with the Sydney property market falling significantly, largely due to a quick regain in confidence, a notable undersupply of property and the sentiment that the majority of rate rises are behind us. Loan defaults have been super low, finance movements have been very high, and the depth and length of any price declines have been very shallow and short in many areas, all clear signs of Sydney’s inherent property market resiliency. In addition, the Reserve Bank’s common-sense policy and the country’s tough lending laws have protected Australia well from any major upheavals in the market. 

Finally, with the banks far more willing to reduce repayments than even a few weeks ago, investors are more likely to be able to target and reduce their debt portfolio. By shopping around, investors can reduce their repayments by taking advantage of a much lower assessment rate, with many banks offering cheaper and better terms in the last two months now the 3% buffer has been lowered due to confidence that we’ve seen the vast majority of rate rises. 

If you are considering an investment property, Cramer offer a range of architecturally superb properties with outstanding amenities in fantastic locations, contact the Cramer team today to discuss your requirements.


Disclaimer: This information and any content provided is general in nature and should not be taken as investment advice. Cramer Property are not liable for actions taken based on this content. Always seek advice from relevant professionals such as legal, financial and accounting experts.

Must See Marrickville!

Factory Theatre, Victoria Road, Marrickville

Voted by TimeOut as one of the world’s ten coolest neighbourhoods, the lifestyle on offer in Marrickville is unrivalled, and its live music and theatre scene is no exception. With its wealth of funky venues and playhouses, you will be spoiled for choice when looking for the best places to party.

First cab off the ranks is the Factory Theatre. This venue hosts incredible live events from an array of performance genres, from standup comedy to sketch, live music and more. On Wednesday 27th September at 8pm, UK hip hop star ArrDee, who’s had an explosive rise to the top with 2022’s most-streamed hip hop records, returns to our shores following a sold out run last year. And kicking off at the start of November, The Life of Bryon is an extraordinary play filled with laughter and pathos. A heartwarming exploration of family and the challenges of love, responsibility, and growing up. The play sees the world through the eyes of one man as he struggles with his past and the critical decision he must make. And after the Factory, pop across to Poor Tom’s Gin Hall for a great cocktail.

Poor Toms Gin Hall, Chalder Avenue, Marrickville

The Flightpath Theatre is the ideal spot to catch emerging acts and rising stars in an intimate venue, or to witness more experimental work than the larger theatres generally offer. Following a performance here head around the corner to much-loved neighbourhood pub, The Henson. This dog-friendly, Art Deco watering hole has an honest working-class bar and great dining with a focus on quality, seasonality and sustainability. With its leafy, child-friendly beer garden, The Henson is a playground for all to enjoy.


Noel Hodda. In This Light at Flightpath Theatre. Photography © Robert Catto

Lazybones Lounge is known for serving up quality live music in the heart of Marrickville seven nights a week. Across its two floors you’ll find up to 15 bands playing each week spanning a variety of genres including R&B, jazz, afrobeat, soul and more amid its decadent Bohemian décor. Camelot Lounge is Sydney’s favourite boutique music venue and home to fantastic singer songwriters, World Music, Jazz, Folk, Blues, Cabaret and Comedy. A friendly venue for young and old alike, coming acts include Johnny G and the E Types, a tribute to Fleetwood Mac, Bowie Unzipped, Johnny G and the E Types, Evil Gal Blues and much more.


Lazybones, Marrickville Road, Marrickville

Another pup-friendly locale is Vic on the Park, Merivale’s Marrickville gem that hosts live music showcasing a spectrum of local talent, along with street murals, creative pub fare and a dance floor that allows you to get down. Pop along to The Grifter Brewing Co for its bright and refreshing range of beers, then just a quick walk away, we can’t go past the iconic Enmore, with outstanding upcoming acts including Belinda Carlisle, The Doors Alive and Deacon Blue.

The Enmore, Enmore Road, Newtown

Marrickville’s largest live music venue, The Great Club, with its 300 seats, is an appropriate pitstop for large touring acts featuring styles ranging from pop and jazz, to acoustic and experimental. While the stage and sizeable bar are undeniably the venue’s main attractions, the small museum of Greek artifacts from the 1950s building’s Greek Macedonian Club incarnation are worth admiring. Upcoming acts include Ash Grunwald and a fab lineup from the USA including Satsung, Jenny Don’t & The Spurs and The Pink Stones.

The Great Club, Livingstone Road, Marrickville

Other great venues include Gasoline Pony which has live music Wednesday to Sunday with Community Choir & Sea Shanty Club on a Tuesday. Then there’s the Marrickville Bowling Club with upcoming gigs featuring Sundogs, a classic rock and roll band compared to Tom Petty and the Heartbreakers and Pulley, a Punk Rock band from California. And to keep up the good spirits, head across to The Bob Hawke Beer & Leisure Centre, replete with 80s nostalgia, Australian-Chinese food and plenty of beer.

To live close to all the amazing live action in this greatest of Sydney suburbs, contact the Cramer team today and learn about the divine apartments at Wicks Place on the Park.

Emma Chappell

Head of Sales & Marketing

Tel 02 8302 1500

emma@cramerproperty.com

To Invest or Not to Invest, That is the Question - Part 2

Part 2 - Property Investment in High Interest Rate Environments

In Part 2 of investing in property in a high interest rate environment and assessing your personal suitability to do so, we will continue to unpack the information amassed by financial and economic gurus, Arjun Paliwal of InvestorKit and Redom Sayed of Confidence Finance in their comprehensively researched whitepaper, ‘5 x Rules for Investing in High Interest Rate Environments.’

When considering property investment, Paliwal and Sayed say it is essential to know the numbers and how to break them down. It is critical for the would-be investor to stress test an investment prior to committing to it, and getting the help of a financial planner and accountant to crunch the numbers is critical to an investment’s suitability for your personal financial situation.



It is imperative to establish how to manage risk, for example the buffers you need for a particular property, minimum rental yields, purchase price limits and your percentage of net savings per month both now and estimating into the future. The current environment is a fantastic litmus test as if you are satisfying tests of stress with the current high rates, but again, your financial planner and accountant will be best placed to assess risk.

For those who already have a property portfolio, when considering a new property, the same in-depth number crunching applies before one takes on more risk in their property portfolio. Very few people buy property outright in cash. As mentioned in Part 1, the vast majority of property investors invest with mortgage debt - the most common Loan to Value being 80%. So, any additions to an investment portfolio need to take into account other assets and debt. In general terms, Paliwal and Sayed also stress that Australia has not had two negative calendar years of property price growth in over 40 years. The last time this occurred was in the 1970s. This shows how resilient the market is and how quickly adjustment periods can pass. The Sydney market is already showing property price increases over recent months.



While the Sydney market fell quickly when rates began to rise last year due to panic and sensitivity after being so used to historically low rates, investors are now more accustomed to rises and for the vast majority, individuals’ positions are far stronger than anticipated in the current high rate environment. With mortgage delinquency incredibly low, property supply dwindling and recent price declines invariably very short, there is a promising return in confidence across the real estate market.

If you are considering an investment property, Cramer offer a range of architecturally superb properties with outstanding amenities in fantastic locations. Contact the Cramer team to learn more.

Disclaimer: This information and any content provided is general in nature and should not be taken as investment advice. Cramer Property are not liable for actions taken based on this content. Always seek advice from relevant professionals such as legal, financial and accounting experts.

Why more and more Mums and Dads are Buying Homes for Adult Children

With the Sydney property market pricing so many young adults out of the market, and with rental costs increasing astronomically, more parents than ever before are taking the proverbial bull by the horns and purchasing a property for their offspring. Recent sales indicate a definite trend showing parents are buying property for their children, either in their own name, the child’s or the family trust.

With soaring rental costs at times outweighing mortgage repayments, parents are seeing the sense in investing in a home for their child. Oftentimes, parents purchase the property and the adult child pays the mortgage or a least the majority of it. But there are some cases where parents are buying a property outright for their child to give them housing security.



There are a few recent cases where a parent has purchased an entire block for their children. For example a local family paid over $5 million for a block of four two-bedroom apartments in Randwick. With a crowd of over a hundred, local families were the most interested bidders, respectively attempting to secure the block for their adult children.

In another case, a father was the successful bidder at the auction of a Chiswick home, paying a massive $4 million so his daughter could live in the same street. And a concerned father bought a Paddington terrace for his children in their 20s. He paid a sizeable $3.8 million to stop them having to pay ever increasing rents.


Sydney University, Camperdown

University of Sydney AHURI research centre director and senior lecturer in urbanism, Dr Laurence Troy, said the university’s recent paper concluded that most young people were unable to purchase their first home without family support. “We now have a system of homeownership based on inherited wealth,” Troy said. “If you’re living independently in a private rental trying to save for a deposit, forget about it. It’s depressing, but people need to wake up to this.”

Some parents are also buying property for their younger children, particularly where the property is close to transport, universities and other tertiary institutions. Recently, a mother from Canberra purchased three apartments in Cramer listings in Wicks Place, Marrickville for her very young children who will one day move to Sydney for university. Popular urban locations where there is also a great youth culture and plenty of infrastructure are most attractive to such parents.

Cramer Property have a selection of outstanding apartments in Marrickville, Zetland and Rosebery. These brand new, architecturally superb properties are located close to tertiary education, transport and amenities. So, if you are in a position to help your child get on the property ladder reach out to the Cramer team today.

Rockin’ Rosebery – Why more and more people want to call this uber cool suburb home

With some of Sydney’s hippest retail, its central urban location, vibrant atmosphere and charming character due to the successful amalgamation of old and new, Rosebery is giving ‘It List’ suburbs like Surry Hills, Redfern, Alexandria and Marrickville a run for their money. Radically transformed in the last decade from a relatively unpopular residential address amid mass industrialisation to one of the coolest places to live in Sydney, Rosebery is a must-see for home-hunters and visitors alike.

It's atmospheric, eclectic, and vibrant with a great sense of community, tons of local facilities and aesthetically pleasing streetscapes populated with heritage homes and architecturally attractive residential developments. Its central position offers a lot of flexibility for visiting other popular parts of Sydney, with the CBD, Newtown, Marrickville, Surry Hills, Redfern, Bondi, Tamarama, Coogee and Maroubra all pretty close as is Sydney Airport.



Adding exponentially to Rosebery’s hip factor, The Cannery is an uber cool converted warehouse complex that attracts Sydneysiders from far and wide. It houses the best providores, tastemakers and buzzing brands that Sydney has to offer. The lineup includes dining destinations 5th Earl, Three Ducks, Elf & Taco, Banh Zeo Bar, Da Mario, Zeus Street Greek and Frenchie’s Bistro and Brewery. And for the sweetest treats, you’re spoiled for choice with glorious Gelato Messina, Black Star Pastry and Frenchie’s Bakery and Patisserie.

This is just the start - enjoy The Cannery’s Archie Rose Distilling Co, Drink Hive, Wholefoods House, Deli Republic and Red Spoon House. Take a coffee break at Welcome Dose then shop up a storm in Zimmerman, The Academy Brand and Papinelle. Need a haircut? You’ll look your best after a visit to Dapper Don Barbershop or Jyle Frame Hair. Don’t miss the markets on the first Saturday and Sunday of the month. And just across the road, you’ll find the best designer outlet shopping in Sydney including Zimmerman, Springcourt, Camilla and Marc, Sambag, Sandler and Dunning Avenue.



Young professionals love to live here due to the lively, socially oriented atmosphere that’s rich in a plethora of fantastic restaurants, street dining, pub life, artisan stores, boutiques. Local institutions, Lakes Hotel and Rosebery Hotel offer a great place to grab a pint. And professionals make the most of the suburb’s relative closeness to the CBD and the fact that they can purchase a modern designer apartment with outstanding facilities from where to base their busy lives.

With a reputation for being a safe suburb and with loads of family friendly resources, Rosebery is also ideal for young families who are coming to live here in droves. It’s a highly walkable and bikeable suburb as a whole, being largely very flat and easy to navigate and has great childcare centres and activities for the little ones. For everyday essentials, there’s a local IGA, Woolworths Metro, and Eastlakes Shopping Centre and Gardeners Road offers amenities galore, with most of Sydney’s best homeware stores and all manner of services.



And for those with pets, Rosebery offers Turuwul Park, numerous nature strips, trees galore, good pet care/veterinary facilities and a great dog culture. Turuwul Park is well equipped with basketball court, small kids play equipment and other fitness amenities.

To enjoy all the attractions of this fantastic suburb on a daily basis, based in an architecturally sublime, luxuriously designed apartment, contact the Cramer team today to learn about the Rothschild development.

Emma Chappell

Head of Sales & Marketing

Tel 02 8302 1500

emma@cramerproperty.com

To Invest or Not to Invest, That is the Question - Part 1

Part 1 of Property Investment in High Interest Rate Environments 

With the RBA cash rate cycle of 12 interest rate rises since May 2022, many property investors are hesitant to expand their portfolio and would-be investors can be forgiven for thinking now is not the time to take the plunge into their first investment property. However, there are a number of factors at play that dictate whether or not now is a good time to invest for any individual. 

Recently economic and finance gurus, Arjun Paliwal of InvestorKit and Redom Sayed of Confidence Finance, released a whitepaper that offers some sage and welcome advice that is worth having a closer look at. Titled ‘5 x Rules for Investing in High Interest Rate Environments,’ the paper does a great job of unpacking the key rules for investing in property. 

The rule both experts believe is the most important, is that the individual investor’s situation matters far more than the market. They believe that each investor must take into consideration where they are at from a financial perspective as understanding your finances and extrapolating those numbers for different rate environments will dictate your readiness to buy. 

Top of the list for Investment Principles 101 is Are you Saving Money? If so, what are you currently doing with those savings? If you are investing in cash, this will not deliver the same returns and growth of other asset classes in the long term, where other forms of investment, including property investment are well suited for those in it for the long haul. Also moving assets away from cash almost always compensates better for fluctuations in inflation. 

Demonstrating a consistent savings profile over time will give you the ability to handle the curve balls that will inevitably be thrown your way, such as increases in interest repayments and unforeseen maintenance expenses. If you are saving 25% or more of your net income, and this is still the case in the current interest and cost of living environment, Paliwal and Sayed believe you are in an excellent position to consider property investment. 

Most property investors invest with mortgage debt – the most common Loan to Value being 80%. How you will be able to service your loan in the current high-rate environment will be a great indicator of your suitability for property investment. It is easy to show serviceability during positive cash flow times where low interest rates can generate high investment yields of 5, 6 or even 7%, however if you can show loan serviceability in the current rate environment, things are looking good for your suitability to invest in property. 

If you are considering an investment property, Cramer offer a range of architecturally superb properties with outstanding amenities in fantastic locations. To learn more, contact Emma Chappell today.

Emma Chappell

Head of Sales & Marketing
Tel 02 8302 1500
emma@cramerproperty.com

Disclaimer: This information and any content provided is general in nature and should not be taken as investment advice. Cramer Property are not liable for actions taken based on this content. Always seek advice from relevant professionals such as legal, financial and accounting experts.

What is a scullery and is it a luxury for only the very rich?

À la mode’ in the grand designs of prestige houses, a kitchen Scullery is rarely an option for most. Previously known as a Butler’s Pantry, apartment owners can only dream of having this luxury. Until now. Innovative, high-end developer, TOGA, have taken this much-coveted luxury and ingeniously incorporated it into a select few apartments in their new landmark development, Surry Hills Village. 

The SHV Scullery will allow fortunate residents to keep their main kitchen in a pristine state, putting messy jobs and dishes to the side until they have time to attend to them. With clutter being the enemy of any beautiful home, this extra space means a stream-lined aesthetic will be far easier to achieve. And the end result of mess-free entertaining of family and friends will have you showcasing your glorious apartment at its best. 

But there are more benefits than just improved aesthetics. Having a Scullery means there will be no more issues with not enough cupboard space. These handy home additions give you the extra storage space to organise your kitchen fantastically so there is no more necessity to squirrel items away in the depths of an already overfull cupboard. 

The Scullery is an incredibly versatile space, giving you the option to dress it as a bar when entertaining, thus creating a purposeful, organised and attractive space for drink preparation and self-service. Alternatively, the Scullery enables you to take care of all the noisy kitchen jobs such as blending, food processing, grinding coffee, etc, in a dedicated space separate from the living area, which is incredibly convenient when living in an open plan design. 

Esteemed interior architects, BKH Interiors, have created these splendid Sculleries in a select few of the exquisite apartments of Surry Hills Village, optimising both form and function. They are highly practical additions to these most elite of apartments and have been designed to be streamlined and beautiful despite their utilitarian purpose. 

To discover the exclusive Surry Hills Village Scullery apartments, please contact Emma Chappell of Cramer Property for more information or to organise an inspection of this outstanding development.