The temptation to dive head first into the Sydney property market is at an all time high. As prices continue to surge alongside record-low interest rates, current and prospective property investors feel safer than ever in the idea that a property purchase will result in capital gain. Although this is somewhat true, doesn’t it make sense to find a property that maximises your capital gain?
In order to maximise your capital gain on a property investment, it is important to take a holistic approach to your research. This means considering every factor that plays a part in the growth of a property’s worth. In the case of an apartment like One The Waterfront, these factors are its amenities, design & technology, location, new and upcoming infrastructure in the area, and the all-important investment statistics.
Of course, the quantity and quality of amenities affects capital gain. A building with quality amenities will always be in hot demand, meaning higher rental yields and lower vacancy rates. However, the balance comes in weighing up whether those amenities set the building apart from others nearby, and whether the costs stack up. According to Jameson’s Strata Management, annual levies should fall between 0.8% and 1.2% of a property’s value where the complex offers facilities. An important consideration here is the scale of the apartment community: the bigger the community, the more residents you can spread strata costs across, meaning more amenities for less.
At One The Waterfront, the amenities you have access to exceeds what you pay for, which sets it apart from neighbouring developments. In keeping with its absolute dedication to providing a lifestyle akin to living at a 5-star resort, One The Waterfront grants unrestricted on-site access to a bespoke indoor private theatre, indulgent club lounge, large verdant rooftop cinema and bbq areas, a 5000 sqm recreational park, and the state-of-the-art Pulse gym and pool. Other amenities include a full-time concierge, an opt-in luxury hotel housekeeping service, 24/7 security, and secure parking. Given One The Waterfront’s scale of 424 apartments across 7 buildings, quarterly strata levies are kept at a very modest level of $660 for 1 bedrooms through to $1,330 for 3 bedrooms, which is 1.0% of the asking price. This ensures investors can enjoy plentiful luxury amenity at an incredibly affordable price.
Design and Technology
Property value is a measure of how desirable or attractive your property is compared to others. An investor must therefore search for properties whose developers have prioritized design features that people actually want. According to property advisory firm Charter Keck Cramer, good design provides for outcomes that function, that feel right, that are striking, that last the test of time and are cost-effective to use and maintain. Lasting the test of time is critical here: apartments are inherently long term investments. Therefore, not only must the construction be sound and durable with timeless design, in 2017 apartments must go one step further and stock the technological features necessary to make them future-proof.
At the heart of a One The Waterfront apartment is the concept of practical elegance. Although beautiful in its counterbalanced interplay of matte, gloss and metal materials, functionality played just as an important role in One The Waterfront’s apartment design.
First of all, the use of space is optimized: handy pull out pantries, integrated fridges and full-width mirrored bathroom cabinets are built in, allowing for abundant storage space. Another example of this is the all seasons living room, which transforms your balcony into part of your living room. The balcony includes a glass balustrade that can be closed off with bifold windows, meaning the balcony doors can be opened to create an extended lounge, or closed to have a second internal living space. It also allows your apartment to be opened up to the breeze in summer, or closed to retain warmth in winter. The all-seasons living room is an exceptional point of difference in a modern apartment, especially when space is the single biggest commodity for owners and renters alike.
The final consideration is the test of time, or the apartment’s durability and technological efficiency. In addition to the high quality materials used such as the engineered marble stone floors and benchtops and gold fittings/fixings, the kitchens come stocked with stainless steel Bosch appliances. These factors are cost-effective, as they will prolong or even dispose of potential maintenance costs. Another efficiency is the apartments’ use of the latest in-home Push™ automation technology. State of the art fibre optics centralize control of your apartment’s lighting, TV, music and more from a tablet or smartphone. Already a mainstay in Asia, technology control systems like this one are sure to become common place beyond the horizon. The inclusion of Push™ Technology is a testament of One The Waterfront’s commitment to future-proofed apartments.
Location and Infrastructure
The key with property investment is picking a location that you determine will appreciate faster than the market average in the future. Although there is no simple solution to finding a location that will achieve this, there are numerous factors that can be assessed in finding a winner. For instance, land value is fundamentally driven by scarcity of supply, proximity to infrastructure/attractions, and accessibility to transport options. Generally, the closer you are to the CBD the better, so for outer suburbs, access to major roads and freeways is a major plus. New and planned infrastructure is also a driver of property prices. Ultimately, the best way to determine whether a location is good investment is to find the one that has the right balance of all these factors.
As Sydney gradually expands to the west, waterfront locations with incredible conveniences will be in short supply. At One The Waterfront, you will have all this and more. Situated at the base of the Wentworth Point peninsula neighbouring Sydney Harbour, One The Waterfront is right across the road from state-of-the-art sport, entertainment, food and leisure district, Sydney Olympic Park. At Wentworth Point, abundant parklands, 35kms of bike paths, walking trails and Sydney’s best playground, Blaxland Riverside Park, are right on your doorstep. For all your retail-therapy needs, walk or take the free shuttle over the new Bennelong Bridge to Rhodes Shopping Centre, home of essentials like IKEA, Coles, Bing Lee, all 4 major banks, and an Aus Post Office. Rhodes also has a train station that connects you to the CBD in less than 30 minutes. But if you prefer to travel by water, Wentworth Point Marina will allow you to easy ferry access to the city. And that's just what exists around Wentworth Point now…
The future for Wentworth Point is also looking strong, with a multitude of infrastructural developments planned and currently in progress in the local area. The Westconnex project is currently underway, which will reduce congestion along Parramatta Road to the CBD by providing a bypass of up to 52 sets of traffic signals. But this isn’t the only thing planned to improve Wentworth Point’s accessibility to major business hubs. Stage 2 of the recently announced Parramatta light rail is set to provide easy connections between Sydney Olympic Park and Parramatta, Sydney’s second CBD. It's no wonder these developments are planned: Parramatta’s economy will grow by 30% to $30 billion by 2021, and the “Olympic Corridor” is expected to accommodate one-third of all new jobs in Western Sydney by 2036. Local education is on the agenda too, with Wentworth Point Public School set to open in 2018. These developments will undoubtedly add future land value to Wentworth Point, and therefore your property at One The Waterfront.
The Key Numbers
Before researching property market metrics, the first thing a prospective investor should do is decide whether they want to pursue a cash-flow strategy or a capital growth strategy. This is because the metrics you pay most attention to will be governed by your chosen strategy.
Cash flow strategies entail finding a property that is going to earn more rental income than the cost of mortgage and management/maintenance fees. Cash flow strategies are especially useful for first home buyers or rentvestors looking for extra income - especially on lower-average incomes.
On the other hand, investors who pursue a capital growth strategy pay more upfront in a high-demand area so that they can benefit from the stronger appreciation of their property’s value in the long term. Investors should therefore pay attention to the historical movement of the area’s median housing/unit price. This strategy is generally suited to people with enough income to afford higher price tags.
Wentworth Point, the home of One The Waterfront, currently experiences 4.00% rental yields, which is above average for Metropolitan Sydney. Wentworth Point has enjoyed significant capital growth in recent times, with an average 3.70% gain on properties in the area in the last 12 months. From January 2016 to January 2017, median unit price grew 6.62% from $650,000 to $695,000. This represents strong capital gains for the investor looking to align to a capital growth investment strategy, and given the infrastructural developments planned in the area, continued strong growth for is expected.
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