- For instance, in Sydney and Wollongong, two vastly different markets, spending $750,000 yielded intriguing but apparent results. While buyers could purchase a four-bedroom, two-bathroom house in one location, the other could hardly provide a bed on a busy road (no prizes for guessing which is which).
By comparing current results with those from July 2020, HTW also gained insight into how markets have changed over time and the security that real estate investment brings. For example, in Western Sydney in 2020, $700,000 could buy a one-year-old two-bedroom unit in Parramatta or a standalone house with a granny flat in St Marys. Meanwhile, a two-bedroom unit in Marrickville cost $655,000. In 2023, buyers can still purchase a unit in Parramatta for $750,000, but it will be a few years newer than what they could have bought in 2020. The same two-bed unit in Marrickville will approach $750,000, and the St Marys house will be a small two-bed cottage that needs upgrading
Similar situations can be seen in other areas. In Melbourne, for instance, new house and land packages in Glenroy, Fawkner, and Reservoir cost between $500,000 and $650,000 in 2020. However, by 2023, most standalone houses and even some townhouses will cost over $750,000.
Since 2022, rents have also risen in all of these markets, with many producing positive cash flow this year. All of this indicates that as long as buyers choose real estate based on sound fundamentals and reasonable independent advice, residential properties remain a reliable asset.For homeowners seeking assistance in navigating these challenging times, North Sydney Mortgage Broker Speed Lending offers expert guidance and support.