Sam Saggers, CEO of Positive Real Estate, said even though he prefers to buy at the bottom of the market cycle, investors can still profit from buying in Sydney.
“Today, Sydney is a bull marketplace and you can buy instant growth,” he said. “Many people are getting good growth even at this late stage in the market cycle by buying somewhere in Sydney.”
Mr Saggers said the key to success in this stage of the market cycle was looking further afield.
“In a strong market, the positional suburbs grow in value rapidly and become unaffordable fast. If you try and buy in the ‘better’ suburbs, you can’t in a bull market – you have to buy further away,” he said.
Despite ongoing opportunities further away from Sydney’s CBD, Mr Saggers said the best opportunities in Sydney in this market cycle were probably around the 2008 postcode.
“The lesson I have learnt is buy in a lull or weak market. You can buy great properties in good suburbs… What you are really buying is market position,” he said.
“For example, in 2008 I bought a property in Dulwich Hill, Sydney. It was $400,000 for a 100-square metre town house in Dulwich Hill. The year 2008 was when Sydney was at the bottom of the market cycle. I bought position – being six kilometres to the CBD. The subsequent years have seen the property climb in value to about $635,000 … Now a $400,000 investment would get you a similar townhouse maybe 20 kilometres to 50 kilometres from the CBD – not six kilometres.”