Wednesday 19 October 2022

INVESTOR ALERT! There's no time like the present to invest in an apartment

Whether you are considering purchasing your first property, or increasing your existing property portfolio, now could be the perfect time to take action. Sydney’s apartment market is remaining strong and outperforming houses for the first time in three years. And return on investment is soaring with rental prices rising fast.

Putting your money into apartment projects is smart thinking according to many renowned commentators. Murray Katz of LogiX Financial Services reports “There are certainly opportunities in this market for apartment investors. Rental yields are slowly coming back after being depressed for quite a while, and the tax benefits are more advantageous. As an asset class, they’ll probably be more on the rise than before and, of course, they’ve always been more affordable than houses.”

Additionally, demand is vastly outweighing supply in the Sydney rental market. According to a recent article from ABC news, “Sydney has become a landlord’s market and renters are paying the price.” With demand being so high and supply being so low, it is not uncommon to have 30 applications for the same property. Interested renters who are able are regularly offering above the listing price to secure a property. And with a 1% vacancy rate, the only properties on the market are snapped up almost as fast as they hit the books, as we are experiencing firsthand in Cramer's Property Management division.

There is a housing crisis predicted for Australia in the very near future, with immigration resuming next year and more and more international students already coming onto our shores. Additionally, many people who made a regional move with the covid-induced rise in working from home, are finding that their workplaces want them back in situ or the regional lifestyle is not what they have hoped for. We predict these people will be returning to Sydney in droves. 

In terms of asset value, there is still a big gap between apartments and houses, so apartments still offer better value for investors with far less investment outlay on purchase. And if you look for the property fundamentals of great location, excellent project facilities, great access to transport and a developer with a stellar track record, you will have a blue chip property that will ensure continuing demand and great long term capital gain. 

Cramer have a number of outstanding apartments for sale that fit the bill. Call the Cramer team today to find out more.

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