There are suburbs where homes attract lower sales prices and these areas make it easier for home buyers looking to increase their property portfolio or get their foot in the door of the market in Sydney. However, there are usually reasons for lower priced real estate and so wise buyers will do well to keep a few things in mind when searching for the ultimate bargain.
Bargains in good locations
There are good and bad areas in nearly every area and suburb. This means a lower priced suburb does not necessarily mean that the bargain you find will be in a ‘bad’ area. It is possible to find homes that are priced well in a good location because they require a little TLC.
If you have the ability or means to carry out the work required on a home that needs some renovating, then this kind of purchase is a steal. Once the state of the house is improved the value will increase greatly if the location is a good one. As a result, your equity will be higher and further purchases are easier to acquire.
Be wary of the location
Certainly, some areas are easier to buy a property because the location is considered undesirable, but these are the purchases to consider carefully. A wise real estate agent who is aware of the market in the area may be able to advise if the location is about to experience a change in value, but if this is not in the near future, reconsider the purchase. You can renovate a home but you can’t change the location.
Why a house over a unit?
If the lower priced property you purchase in Sydney is intended to be an investment or if it will eventually become one, then a house is your best option. For a start, when it comes to resell down the track, if the home is acquired in a lower price bracket then there is a greater potential for an increase in value, bearing in mind though that in a lower priced suburb there may still be a limit to the price in years to come.
From a rental perspective, properties that are further out in the suburbs from cities are more likely to attract families who want and need the space. In this case, purchasing a unit in such an area at a lower price will not be a wise move.