The government has been establishing growth centres in the areas surrounding Sydney. These centres are intended to attract new residents and stimulate expansion in the area – the focus of the initiative being predominantly new home construction. What does this activity mean for you as an investor? Get to know more about these hot spots before injecting money into a new property.
Booming Home Construction
Government programs across Sydney are intended to boost the housing supply to better regulate prices. Real estate costs have been skyrocketing and the prohibitive cost of entering the market has become a real concern for potential buyers. New home constructions are intended to alleviate many of the problems associated with limited supply and huge demand.
A total of 172,000 new homes will be constructed in conjunction with the program. Suburban and urban areas will be developed throughout the duration of the program, so investors who are hoping to find a lucrative opportunity will have their pick of locations around Sydney.
The main goal of new home construction initiated by the government is to make housing more affordable whilst adding jobs in the region. Investors stand to benefit if the objective of lower prices is achieved. Less expensive real estate costs will allow investors to enter the market, but the popularity of buying in Sydney is likely to allow prices to hold steady in the future.
Where To Buy
Where are these growth centres? Two major centres offer lucrative investment opportunities.
- The North West Growth Centre will consist of approximately 70,000 new homes.
- The South West Growth Centre will consist of approximately 110,000 new homes.
Both of these centers offer the benefits of population growth, lower rents and convenient rail connection with Sydney.
The Problems With Growth Centers
Of course, there are risks associated with buying in a government growth centre. One issue is that these suburbs are not the most popular areas for residents who are thinking about relocating to Sydney. Commute times from the areas can be long, and people who are finding jobs in the city may not be willing to live so far away from their place of employment.
Government growth centres in Sydney are set to make investment property more readily available. However, investors have to be diligent about researching these opportunities to avoid making a purchase in an unpopular area that is plagued by crime and long commutes. For more information on this opportunity contact your local Mortgage Choice investing expert today.