Hi all, Looking to purchase my first unit in Neutral Bay, Sydney. The properties I have been looking at are 1 to 2 bedroom units around 750k to 1 million. What are peoples thoughts of the Sydney apartment market? Do you think it will grow once the borders eventually open back up? Or go the other way due to rising interest rates? What do you guys think about the WFH situation? I am of the view that people will eventually move back to the big cities (Sydney, Melbourne etc) when Covid is under control. Interested to know everyones opinion as this will be my first purchase. It will be a buy and hold property where capital gains is the main aim to be able to draw the equity from it to purchase a second place and so forth. I have been waiting for the boom to slow down for some time but it doesn't appear to be doing so. I have read a few people say on here that it is better to be in the market then to time the market.
Capital gains and apartments don't mix well .. land appreciates, structures depreciate and apartments are mainly just structures. There are plenty of older posts on why apartments may be a poor investment choice other than when you want to live in one and don't care about capital growth.
This hits the nail on the head. Apartments can easily be oversupplied as it only takes a couple developers to increase supply (if it isn't oversupplied already). With a 1 mil budget, you would have a wide variety of options to choose from. I would focus on purchasing an established house with a decent-sized land component in a high-demand area. You could even purchase two properties between 400-500k depending on your goals and strategy.
