Opportunities for investors looking to free up financial leverage

The-right-policy-direction-is-necessary-to-alleviate-housing-prices-in-Sydney-says-the-HIA_157_65918_0_14099646_300Sydney property owners have the upper hand, with the capital city topping the list of seller’s markets across the country, according to the Commonwealth Bank-RP Data Home Buyers Index (HBI) for the month of January 2014.

Existing property owners and investors are placed in a much more favourable position than first home buyers, with new home loan figures soaring above available supply.

Sydney comes out at the top

Between October 2013 and January 2014, property market conditions in Sydney moved even further to favour sellers, according to a March 31 CommBank statement.

Selling conditions have also changed year-on-year.

For instance, “appropriately priced” properties are selling in a flash, highlighting just how strong demand is. While investors will need to keep their eye on the ball to secure more dwellings to add to their rental portfolios, the low cash rate makes affordable credit readily accessible, while intimate knowledge of high-growth suburbs can ensure investors secure the best property at a price they’re comfortable with.

Homes are also going for above list price. Investors looking to free up some cash may consider letting go of a property and using the potential capital gains towards renovations on other properties.

Buyers have less negotiating power in Sydney, too. While fast sales and high prices are boosting property market activity, it’s essential for investors and home buyers to keep their eyes on the prize when it comes to securing property.

Top property

Several areas stand out in Sydney. Property owners in this area may do well for themselves if they’re looking to earn a tidy profit on their home or sell fast in order to purchase in a more flexible market, such as Outer Western Sydney, which is considered “balanced”.

Blacktown came out on top as an extreme seller’s market, with its HBI indicator rising from 3 to 5 points year-on-year to January 2014.

Cantebury-Bankstown and Central Northern Sydney both increased from 3 to 4 points over the same period, making them seller’s markets.

Central Western Sydney and the Eastern Suburbs were dubbed extreme seller’s markets.

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