January 21st, 2019 | Updated on February 12th, 2019
Ready to get those home properties for a bargain, but aren’t sure where to start looking? We’ve looked in your stead and identified a couple of undervalued suburbs in 2019, making this year the right time to start investing or looking for your future home.
Sales activity in Lakemba is seen ramping up during the three months ending December in 2018. Sales transaction rose by 20% compared to the same period last year. Median rents for units also jumped solidly – coming up to $40 per week to $340 in comparison to last year, which means demand is effectively outstripping supply.
The demand boosted median up by 4% during the quarter. Also, the 12-month growth of 8% is still well below the previous performances when unit prices rose 12% and 15% respectively. This means that the current level provides a significant discount for wise investors looking to acquire properties in the area.
The rising rents even pushed some renters into buying. Investors haven’t gone anywhere dues to good rental yields. Gross yields above 6% are typical with a 2-bedroom apartment renting going as much as $400 per week.
Newtown’s unit, like many Sydney suburbs price, has also slowed during the previous years, but it now seems that those buyers are back in a big way.
The number of sales rose by 8%, pushing the median price to $417,000. Moreover, improving yield also shows a rise in demand, thanks to rising rents. Rents jumped $80 per week or up 19% during the 12 months to March compared to the previous year. On average, some properties are selling within a month of listing, which shoes that demand continues to remain hot in the area.
As investment opportunities go, Newtown is not overrated and in the long term, it’s expected to do rather well. It’s a location that is continually changing, and rents just keep increasing. Newtown is just 2km from Sydney’s central station and 1km from the University of Sydney, which will make it hard for investors to beat.
Gateshead is known to be one of the few suburbs in the Newcastle region where it’s possible to get a house for under $300,000. Here you only need 6km to get to beaches and legendary surf spots as well as a quick commute into Newcastle. This moved up the area up on the lists of first-time home buyers preferred properties.
Should You Buy This Year 2019?
Now that the price falls are well and truly underway, all five economists that were surveyed by The Australian Financial Review believed that the national house values would continue to drop in 2019.
We are now in a buyers’ market wherein home-owners and investors possess the balance of power on their side.
Now, what do you do with this knowledge? It’s time to get serious and join other home investors and see if a suburb or two in this article speaks to you. Check out the Newcastle Permanent Building Society (NPBS) resources to see more tips and tricks for first home buyers. Aside from the vast library of resources, NPBS is also one of Australia’s top home loan providers, so consider checking out their services while you’re there.
Best of luck with your new home purchase!