“Where have you been? The Sydney Real Estate market is really moving and your property is in the thick of it. Why don’t you call me for advice on where your property currently sits?”
This is what faced me earlier this morning as I checked my mailbox on my way to work. We encounter these notices day in and day out. The thing that struck me is how the advertising was pitched. “The Sydney Real Estate Market”. This is what the media convey over the entirety of the city but the market changes from suburb to suburb, street to street. Metaphorically speaking, the best way to describe the market is in the form of a Babushka Doll. There is the large doll but as you delve deeper and start pulling away, more dolls appear. Tinier and tinier. Each doll has the same amount detail but gets smaller. The same can be said for the real estate market. Everyone puts on their real estate hat and burrows deeper to find out more information about their investment. The intricate details of the smallest doll would be that of your property. A small figure but an essential part in the market.
So what does this mean for Zetland and Victoria Park?
Zetland and Victoria Park are very specific just like any suburb. New developments, mostly apartments and located within close proximity of the city. People who are invested in the area should not be phased about record house sales in Doonside in Sydney’s west. In the first quarter of 2014, 31 properties were sold, 2 of those being houses, the remainder apartments. The supply and demand for the local market places heavy focus on what is trending with apartments and their sales. As the area is slowly nearing completion with developments such as East Village and Platinum set for completion this year, it will be interesting to see what occurs within our local market, but also the greater Sydney market. We have experienced a boom of late which I reported on in an earlier blog with a high volume of sales and record prices but it does appear to have reached, if not passed its peak. Just like the Babushka Doll, every part is essential in gaining the final result.
Decisions, Decisions, Do I Buy off the plan or not?
There has always been doubt in many purchasers’ minds as to whether they should take the leap and buy off the plan or invest their hard earned money into a property which is tangible at the time of purchase. As we make our way into 2014, technology has greatly benefited to those people who are looking to buy off the plan. By using computer technology, we can see exactly what the property will look like with 3D floor plans and 3600 walkthroughs.
All this relates heavily to the Victoria Park market with a large amount of development sites still in this phase or coming up in the near future, it gives you as a prospective client, a lot more information on your purchase.
By taking that leap and investing off the plan, you inevitably have your choice of which property satisfies your needs as a purchaser. It could be that it’s north facing or has a bigger balcony, the list never ends. The one point that is guaranteed is that you will escape the rat race that will follow when the building is completed when people are lining up to purchase whatever they can get their hands on.
For me, as a young investor, something else which does appeal is the length of time for the construction period. This enables you to save up more money for when settlement is finally completed in the future. Of course, this does not apply just to the Gen Y’s but to people of all ages but is a positive aspect for those first home purchasers whether it is an investment or the family home.
In many cases, when buying off the plan, the value has increased from the date you purchased off the plan to the date of completion. With the thought of capital growth, it does reflect the thought that the early bird gets the worm.