Property Investment & Wealth Creation Australia | The Michael Yardney Podcast What's the most desirable location in Sydney? | Success is easy, but so is Neglect | Is it cheaper to rent or buy?
What is currently the most desirable location in Sydney?
The answer may surprise you.
Areas like the eastern suburbs of Sydney or the lower north shore may immediately spring to mind. And yes, they have been and will continue to be desirable due to their affluence.
However, there is no doubt that the underestimated location in question, which has long been the underdog, is now dominating livability studies due its cultural amenities, transport options and great value.
Have you figured it out yet?
Well, it is none other than the inner west of Sydney.
The inner west is emerging as one of the most sought-after local government areas in Sydney.
From Dulwich Hill to Newtown, Leichardt to Balmain, the metropolitan area directly west of Sydney CBD is now starting to shine as the 'Europe' of Sydney.
Domain suggests that "the unassuming inner west may once have been overshadowed by the flashy eastern suburbs, the bohemian inner city and the blue-ribbon lower north shore.
But in recent years, this cluster of neighbourhoods stretching due west of the CBD has emerged as Sydney's liveliest and most livable precinct – and, for many prospective buyers, it's now their top pick."
So, what makes the inner west so desirable?
Let's run through a few pointers.
- Love it or hate it, the inner west has the reputation of being the most liberal, socialist, green, intellectual part of Sydney. Accordingly, the area has become increasingly gentrified over the past decade.
- The inner west shares the livability and similar cultural amenities to affluent areas like the Eastern Suburbs and Lower north shore but at a much more affordable price point making it fantastic value for owner occupiers and investors alike. First home buyers are also finding that their money stretches further in the inner west.
- The inner west is one of the oldest areas of Sydney with the architecture ranging from art deco apartments, terraced houses and small mansions that reflect its development in the Victorian and Federation periods. This adds to the inner wests appeal and scarcity value. The region's unique housing attributes are also helping it pull ahead of the pack. Much of the terraced housing stock in suburbs such as Newtown and Annandale dates back to the 1860s and has become coveted by affluent buyers seeking historic charm coupled with low-maintenance living."
- It is one of the few local government areas that has access to Bus, ferry, light rail, train and cycle paths. Transport infrastructure within the inner west has never been stronger with locals seeing the benefit as Sydney's population continues to swell.
"There's a lot to be said for excellent public transport, no matter your income level. The buses are excellent. The light rail gently wends its way from Dulwich Hill to the city. The Inner West train line connects even more suburbs. And people in Rozelle and Balmain can catch the ferry. All that choice is very attractive."
The inner west has certainly proven to be an investment grade area that is both strong in having wealth building rates of growth but also stable, in that due to its local economic growth drivers will not fluctuate in value as much as the outer suburbs of Sydney.
Success Is Easy, But So Is Neglect
Jim Rohn suggests that when giving the choice of "easy to" and "easy not to" that you don't neglect to do the simple, basic, "easy"; but potentially life-changing activities and disciplines
Pros and Cons of Rentvesting in Sydney
Pros:
- You can enter the property market sooner
- You can live the lifestyle you want in your dream home without waiting
- You'll be able to start building wealth sooner
- You can save for your dream home while you rent
- You have more flexibility to change your living situation if your circumstances change
- You have the freedom to move around if you're not ready to settle down in one spot
- You can take a tax deduction on the interest payments on your investment property loan
- If you want to live in an area that isn't a great spot for investment, you can live in one area and invest in another
Cons:
- Buying an investment property before buying your own home may seem counter-intuitive
- Rent money is often considered "dead money", and this can be a sticking point for some people
- You may eventually have to move out of a rental home that you've formed an emotional connection to
- You're limited in how much you can renovate or upgrade a rental home
Links and Resources:
Ahmad Imam – Director Metropole Property Strategists - Sydney
Michael Yardney's Mentorship Program
Some of our favourite quotes from the show:
"The way one lives in Sydney has evolved, so more people are happy and expecting to live in apartments in Sydney, as they would in any other major metropolis in the world." – Michael Yardney
"One of the things I want to point out is that it's always been harder for first-time buyers, and study after study has shown it's really not harder today than it was 40-50 years ago." – Michael Yardney
"Rentvesting won't be the ideal strategy for every investor, but if you're just starting out or if you're prepared to think outside the box and do things differently to get ahead, then becoming a landlord and a renter may just be the right way forward for you." – Michael Yardney
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