Sell or hold your North Sydney investment property?

If you own property in Neutral Bay, you might have noticed there seems to be a wave of sellers at the moment and be wondering if now is the time to sell.

It’s a tough position, and deciding whether it’s best to hold or sell can be difficult.

So, what is happening with the market, and which decision is best for you?

Neutral Bay property in 2023

According to reporting by the Sydney Morning Herald, in Northern Sydney, the region that includes Neutral Bay, 57.1% of properties listed for sale were investment properties. That’s considerably higher than the 40.4% historic ten-year average.

It almost feels as though investors are fleeing the market…

Why is this happening?

One theory as to why investors are selling, according to Eliza Owen, CoreLogic’s head of Australian research, is that the interest rate hikes have made keeping up with a second mortgage untenable.

“From a rental income perspective, investment properties don’t stack up as well as they did when rates were at a record low. That might be prompting these investor sales,” Owen told the Sydney Morning Herald.

Another strong possibility is many cash-poor investors are hoping to release equity to downsize their homes for retirement. The result is the sudden rise in investment properties for sale in Northern Sydney.

However, despite the flurry of sales activity, house prices are rising. Homes of all sizes are generally selling quickly because there is demand to match the supply and there are still buyers coming from overseas and within Sydney who have ready money. They understand that getting into Neutral Bay is a good idea at any stage in the property cycle.

Should you buy, hold or sell your Sydney real estate?

The decision you make will come down to personal factors, but there are a few things to consider.

Firstly, if your finances are pushing you towards selling, 2023 is a good time to list your property. Unless you made your purchase during the pandemic, you should find the home has risen in value enough to give you some financial flexibility when you sell.

In terms of holding, this is actually a good idea as well, for the following reasons:

Neutral Bay is an evergreen suburb and is always desirable for renters. If you have an investment property in good condition, you should find it easy to attract tenants (so long as you have the right property manager – feel free to give our property managers a call).

Not only that, but forecasts are showing that the area will only be in more demand in the near future. Population growth is on the rise and urban areas are always sought after.

If you own an investment property in Neutral Bay, instead of selling, you can find ways to maximise appeal and rental yield, which will give you better returns sooner. We have renters lining up to inspect properties at the moment, and we don’t foresee this changing any time soon.

In fact, if you don’t already own an investment property in Neutral Bay and you are in a position to make a purchase, now is an excellent time to do so.

Get some good advice

Making the right decision about what to do with your property in 2023 will be easier when you have expert support. It can be hard to figure out what the outcomes of selling or holding will be, so you have to talk to the right people. Once you have some projections, forecasts and sums figured out, you’ll have a better idea of what to do.

It’s also important not to be swayed by generic property market headlines that describe what’s happening in Australia as a whole. You need to know how property is performing in your postcode, right down to your street, to be clear about which direction you will take. An expert local real estate agent has up to date data that can be used to inform your decision.

If you sell, you should be able to achieve a great price. If you hold onto an investment property in this market, you can work with a property manager to make sure you’re getting the right rental income and maintaining the home’s value.

Need real estate advice relating to property in Neutral Bay? Get in touch today.