Buying a home is one of the biggest financial decisions you’ll ever make. It usually takes a lot of money, and it’s not something you do every day.
But if you’re considering buying in Sydney, there are several reasons why now might be a good time to invest the new development in Sydney. If you’re thinking of buying a home in Sydney, you’re not alone.
The city is a major drawcard for people looking to move interstate or overseas and it boasts some of the most desirable real estate in the world.
Here are 8 benefits to buying a home in Sydney:
- A great lifestyle
Sydney is consistently voted Australia’s most liveable city and it’s easy to see why. The city has a buzzing nightlife and culture scene, but it also offers beautiful beaches, parks and nature reserves for residents who want to get outside. The mild climate means that outdoor pursuits are possible year-round.
- Affordable housing prices
Housing prices in Sydney have been increasing rapidly over the past few years, but they’re still relatively affordable compared with other major cities around the world. According to Numbeo data from February 2019, median rent for a one-bedroom apartment in Sydney was $330 per month while median asking price for an apartment was $622 000 (Australian dollars). In comparison, median rent for one-bedroom apartments in London was $1 020 per month while median asking price for an apartment was $1 688 000 (British pounds).
- Low interest rates
Rates on fixed-rate mortgages have fallen substantially over the past few years and are expected to remain low for some time. Even variable rate mortgages have fallen sharply from their peak in 2008/09 when they were at 10%. These days they are closer to 6% and could fall further if interest rates continue falling or even reverse course in Europe or the US (although this seems unlikely).
- The economy is strong
Sydney has an enviable economic performance compared with other major cities around the world. It’s also one of Australia’s most stable economies, avoiding recession during both recent downturns in financial markets (2000-02 and 2008-10).
- Property value growth is expected to continue
Sydney property prices have increased by over $500,000 since 2013 and are continuing to rise. The median house price in Sydney is now $900,000 and the median unit price is $650,000. While growth has slowed since the introduction of macroprudential measures in 2014, experts say that housing values will continue to increase over time as supply lags demand for housing stock.
- Rental yields are good
Buying an investment property can be lucrative if done right and you choose wisely when investing in a suburb with good rental yields and capital growth potential. In Sydney there are strong rental yields across all major cities as well as inner-suburban areas such as Parramatta and Liverpool which are close to amenities such as schools and transport links while also offering access to employment hubs like the CBD or Chatswood.
- You’ll have more control over your finances
When you rent a property, you’re paying someone else’s mortgage and upkeep costs. When you buy a house, those costs are yours and yours alone. This means that if something breaks or needs replacing, it’s up to you to pay for it — which can be an advantage or disadvantage depending on your circumstances.
- You’ll save money on stamp duty
The amount of stamp duty payable varies depending on where in Australia you want to buy property, but generally speaking it’s around 7% of the purchase price for residential real estate transactions in NSW, Victoria and Western Australia (and sometimes higher). If you’re buying an apartment off-the-plan from an approved developer in NSW, Victoria or Western Australia, there won’t be any stamp duty payable at settlement.
