Why Neutral Bay is an evergreen investment option

With interest rates remaining low for a few more months at least, it’s a good time to speak to your broker about finally purchasing your first investment property or adding to your portfolio. 

If you’re trying to decide where to invest this year, Neutral Bay is an excellent choice – read on to find out why. 

Value for money

It’s true that Neutral Bay is not a cheap suburb (very few of the desirable postcodes in Sydney are). It isn’t the choice if you hope to snatch a cheap block, level it, and cram in five units. 

However, Neutral Bay is highly sought-after and well-established. Domain ranks our little urban village as the 11th best suburb in Sydney, with most surrounding suburbs also rating towards the top. Property prices have also risen steadily over the past five years. You might pay a little more for a Neutral Bay property, but it is worth it.

One of Sydney’s most liveable suburbs

You can’t underestimate the value of liveability when finding renters for an investment property. Liveability is a broad term referring to how easy and comfortable it is to reside in a particular suburb, based on the following criteria:

• Affordability
• Community
• Employability
• Amenity
• Accessibility

While all of Sydney rates highly for liveability, Neutral Bay, in particular, scores a very high 81 on the liveability scale. 

Neutral Bay is the perfect combination of leafy and urban. Just 1.5km north of the CBD, its surroundings are full of stunning nature walks, sophisticated cafes and bars, high-end shopping, water activities, and even the world-class Taronga Zoo. Odds are, wherever your property is in Neutral Bay, it will be within walking distance from a top-notch coffee and a stunning view. All this makes the area appealing to renters, which is exactly what you need from an investment property.

Quality renters

Neutral Bay is popular with young professionals. The suburb works well for them because it is a chic but quiet location with an easy commute to the city. 

Any property manager will tell you young professionals tend to make ideal renters as they have healthy budgets and are usually reliable. They don’t tend to be demanding, so long as you keep the property in good condition and make sure it is a comfortable and secure home. 

Diverse properties

Another huge benefit of investing in Neutral Bay is the diversity of property styles. From stately mansions to modern apartments, Neutral Bay can accommodate a cross-section of budgets. Investing in one of Neutral Bay’s older, smaller apartments is a smart way to get your foot in the door. You can draw even better returns from a larger property in Neutral Bay though if you have the capital or equity for a deposit.

Numbers don’t lie

If you invested in a house in Neutral Bay in 2013, the value of your property will have more than doubled (based on average house prices). For units, average prices jumped from around $700,000 to around $1.1 million. It’s easy to see why investors love the area.

The bottom line

Neutral Bay is a wise long-term investment. It is a highly liveable and sought after suburb next door to Sydney’s heart. You may need to spend a little more, but your investment will pay dividends in the long run.

For more information on buying a Neutral Bay investment property, contact HPA today.