The current conditions in the Sydney property market are just right for Generation Y and Generation Z property investors to get in.
That is according to business and finance leader Ayda Shabanz, who said that the Sydney market decline is the optimal setting for these younger investors to get into the market.
Those who have considered entering the market would have likely chosen to live at home with their parents in order to save as much as possible for a deposit.
“If you look at just one generation previously, there was a very strong sentiment towards home ownership, and they would therefore buy the first house they could afford,” Ms Shabanz said.
“Now owning and living in a home is not necessarily everyone’s main goal in life, and property that is being purchased needs to tick a lot of boxes.
“Some people of this generation want to buy an investment property in the area they can afford and keep renting where they choose to live. Still, others are keen to build an entire investment portfolio while enjoying the lifestyle they have grown accustomed to.”
Previous CoreLogic Weekly Market Indices have indicated that the Sydney market has declined by 0.4 per cent, which Ms Shabanz has claimed will result in weakening demand over this year and next. She added that investors should be taking advantage of these conditions either by buying property or consolidating portfolios.
“Quick sales with purchase prices meeting the reserve price and sellers’ expectations are going to be slower and fewer in between, so investors are advised to hold onto their property and perhaps look at renovating to add value when the market lifts again,” the finance leader said.
“We have all watched recent shows about house flipping on TV, where the investors purchase a property, give it a face lift and then sell it to make a sizeable profit, all within the 30-minute program. I advise investors to use these shows to get inspiration and ideas on the renovation side, and then list the property for sale when the market gathers momentum again.”