Why a Neutral Bay apartment is an evergreen investment

Wondering where to invest in Sydney? The closer you can get to the city, the better.

One of the most popular options for investors is Neutral Bay. This postcode is just over the Harbour Bridge, less than two kilometres from the city. It is on the doorstep of so many attractions and activities while also having an urban village feel.

When investors come to us for more information about Neutral Bay, we share the following points to highlight its investment potential:

Location

Neutral Bay’s location has two advantages:

• Convenience: A stone’s throw from the city without being within the bustling CBD, Neutral Bay presents the best of both worlds for prospective tenants. The suburb is an ideal spot for upwardly mobile young people working in the city as well as empty nesters who want to live in a central location and go to the city to see a show or dine out.
• Nature: Another reason that Neutral Bay is so popular with renters is that it is an amazing blend of inner city living and natural beauty. With the harbour nearby for swimming and plenty of walks that allow you to forget you’re even in the city, the suburb is a natural wonderland.

Affordability

The number of apartments in Neutral Bay means you can find a smaller place and pay less as an investor. And because of the demographics of Neutral Bay, apartments are much sought after in the area by renters.

The other advantage is current low vacancies and the demand from high quality renters. This  means you should be able to charge a premium to offset the holding costs of the property.

Students

Neutral Bay has always been popular with international students who don’t want the typical student life but still want to be close to the action. These students are now returning to Sydney after the pandemic so buying an apartment to lease to them is a safe bet.

It’s easy to get to UNSW, the University of Sydney and UTS by public transport from Neutral Bay and students enjoy visiting the cafes, restaurants and pubs in the area.

Is now the right time to invest in Neutral Bay?

In 2023, savvy investors are active in the market.

Here is a quick rundown of why now is the right time to invest in Neutral Bay:

• Interest rates: Rising interest rates are keeping a lid on house prices and have made conditions challenging for some property owners. This means there are more affordable properties coming onto the market. If you can afford to invest, it’s an excellent time to do so.
• Low vacancy rates: Vacancy rates in Sydney are less than two per cent and rental prices are at record highs. If you can use this to your advantage as an investor, now’s the time to take action.
• Resale: The average unit price in Neutral Bay was $941,000 in January 2020 and is now $1.1 million. Even last year, when prices fell around Sydney, Neutral Bay averages increased. This demonstrates how evergreen the suburb is as an investment. If you do need to sell, you shouldn’t have too much trouble finding a buyer and making a profit.

Are you ready to invest in Neutral Bay? Contact us to find a home that ticks all the right boxes.