Sydney ripe for investment
Real estate investment opportunities are ripe in Sydney, according to figures from the Real Estate Institute of New South Wales (REINSW).
The NSW capital city is continuing to experience pressure with regards to its residential rental market, with certain suburbs feeling the heat.
Ultimately, it's becoming more difficult for tenants to secure property, with consistently strong demand for rental properties across the city. However, a low vacancy rate is proving beneficial for property investors in the area. Lenders' current cheap home loans make investment a sweet proposition for many Australians looking to get their foot on the property ladder.
Inner Sydney 'tight'
Inner Sydney suburbs are experiencing the tightest vacancy rates in the city, with a figure of 1.6 per cent, according to the REINSW's April 2014 Vacancy Rate Survey.
The Sydney-wide vacancy rate is 1.7 per cent, just 0.1 percentage points ahead of the inner city figure.
Those considering where to buy a rental property may wish to pay attention to the inner Sydney suburbs. They include the local government areas of Ashfield, Leichhardt, Marrickville, North Sydney, Waverley and Woollahra.
The vacancy rate for these areas actually rose 0.3 per cent in the month to April, but the overall rate is still incredibly low.
Middle Sydney suburbs are holding a 2 per cent vacancy rate, while outer Sydney suburbs are holding vacancy rates in line with the city average (1.7 per cent).
Looking outside Sydney
If capitalising on your home's existing equity in order to invest sounds like a great prospect but you're not set on Sydney, consider Wollongong.
"Wollongong vacancy rates have hit lows last seen almost three years ago, with a decline of 0.8 per cent to 1.5 per cent. Across the Illawarra region vacancy rates are at 1.6 per cent, down 0.5 per cent," REINSW President, Malcolm Gunning, said.
"Wollongong is an attractive proposition for those who wish to relocate from Sydney. Its beachside location is a more affordable option for those who are seeking a more relaxed lifestyle and this is putting pressure on the number of properties available."
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