subject: The Sydney Investment Property Market: Pros And Cons [print this page] Sydney seems to be a great place to buy investment property. Because of its demand for home ownership and rental, it appears to be a perfect opportunity for property investment. But, is it truly as great as it appears to be? Do the risks of investing your money here outweigh the benefits? Consider the possible issues about buying investment property in Sydney below and find out if they are applicable to your situation.
Advantages
1.You will definitely have a good return of investment if you sell your property at the right economic conditions.
2.You can rent out the property in the meantime, covering your mortgage, while gaining additional income.
3.You do not have to hire experts to manage your money since you, yourself, are in control.
4.In a bustling city like Sydney, you are offered with countless choices of properties of any size and cost.
5.Most likely, you are not poised to lose much considering such measures as negative gearing. There are many costs that can be deducted against tax.
Disadvantages
1.The return on your investment might take long to realize and is very much dependent on the conditions prevailing in the market. Misjudge the peak of prices, and you can end up losing money.
2.Renting the property out can be difficult, and will often entail additional costs for repairs or rent management. It also involves your constant attention, so your investment would not just be a passive one. You would have to make a commitment to be there the next time the roof leaks.
3.Since this type of investment involves so many costs, there might not be much funds left to control. Estate agents, lawyers and taxes take a bite out of your earnings.
4.If you want to make a profit, you will need to have a certain level of expertise in choosing good properties to invest in.
5.Negative gearing would only work to your advantage if the market conditions are healthy. It actually works against you in tough conditions, as it burdens you with costs that are not part of your budget.
In summary, investing in property generally takes know-how, skill and a lot of luck to become successful. There are significant risks involved, given the way the field is linked to the overall state of the economy, and managing those risks requires a level of attention that many people find they are not able to fit around their normal lives.
If you are one of these people, then you should think very hard before you buy property investment. Sydney may present you with varied options, but all will demand a degree of financial and personal commitments that you should take notice of even before you begin. If you have doubts that this is for you, or if you are looking for an investment that is more passive, then you should look for other alternatives instead. A lot more options are out there that requires lesser specialized knowledge that can even be safer and more profitable alternatives.
And you can take the first step towards learning more about how to buy investment property Sydney by getting FREE access to Greg J. Hamlyn's Investment Consumer Guide (value $47). You can access this consumer guide by clicking or visiting: http://www.firststephomes.com.au
