Why Neutral Bay is a safe bet for investors

You may have heard a lot of buzz lately about trouble in the property market. During the pandemic, prices skyrocketed, and now the market is being described as less stable.

However, the big pictures that make up the headlines tend to miss fine details, and the fact is that not all Sydney real estate is created equal. Some suburbs are still safe and reliable investments.

Let’s take a look at why Neutral Bay is a top choice for property investment at this point in time.

Real estate figures in Neutral Bay

Recent figures show the suburb is placed very well:

– The median house price in Neutral Bay is $3,050,000, and the median unit price is $1,142,500.

– The average annual growth is +6.27% for houses and +3.38% for units.

– Median rental prices range from $880 for a house and $550 for a unit.

There have been an impressive 289 sales in the past 12 months, with 239 units listed in the area.

These figures prove healthy growth, with Neutral Bay houses and units gaining comfortably.
It is actually important to see steady growth rather than sudden massive change that is hard to maintain and at risk of reversing, which is why Neutral Bay is recommended as a place to invest.

What about unit sales?

The majority of the sales in Neutral Bay in the last 12 months were units. If you know the area, this will come as no surprise.

There are a lot of professional couples in Neutral Bay, so units are very appealing. They also come at a lower price, so it is easier to generate good rental yield if you want to buy one as an investment.

Neutral Bay’s cosmopolitan lifestyle makes it desirable for people of all ages. It mixes inner city appeal with the leafiness of an outer suburb.

What about the rental market?

Around 50% of Neutral Bay residents are renters and the suburb is always in demand from people who want to live somewhere with a cafe culture that is close to the city.

With such a high proportion of renters in the area, it makes perfect sense to invest in a rental property in Neutral Bay. Right now, there is a shortage of rental listings, which makes it an excellent time to invest and list your property for lease – which we can also help you with.

Renters are desperate to snap up decent rental properties in quality postcodes, so your investment in Neutral Bay will not sit empty for very long.

Buying in Neutral bay

When you’re looking for an investment property in Neutral Bay, there are a few things to keep an eye out for.

Rentability: Most renters in Neutral Bay are young, child-free couples, so a unit will be the easiest property to rent out.

If you are looking for a house, think about the location. A family home will be more desirable if it is nearer the schools and public transport lines.

Maintenance: You don’t want to spend lots of time and money on repairing or upgrading a property. Unless your specific goal is to flip, look for a well-maintained property with sound structure. You should always have a structural assessment before buying any property.

Strata fees and planned works. Ask to see recent strata meeting minutes so you can check how well the property is managed, what works they have planned, how much of a reserve fund they have to draw on, and how much you’ll be paying in (tax-deductible) strata fees each quarter.

Talk to us

As a longstanding local real estate agency, we know the area better than anyone and will help you find a property that matches your investment goals.

Once you have purchased an investment property, we can also provide the highest quality property management services.

Are you ready to invest in Neutral Bay real estate? Contact us today.