ATTENTION: Property Investors Prepared to Play the Long Game

There are broadly three ways investors make money in property:

1. Buy & Hold (Passive Investor)
2. Buy & Renovate/Build (Active Investor looking to manufacture capital gains)
3. Buy Before Everyone Else (I made this one up, but stick with me)

While the first two strategies need no introduction, the smartest money I’ve seen made in real estate has involved buying assets before a material change occurs that significantly increases property values in that area.

For recent examples, think of Badgerys Creek before the airport decision or the farmland in the Hills District that was subdivided and sold for 100x their purchase price.

Last Friday, Australia’s largest inner-city renewal project took a significant step forward with the NSW government awarding the contract for the first stage of the $4B renewal of the Waterloo Estate.

Waterloo, located just 3km south of the Sydney CBD, has been a “RED light” area according to our proprietary tool, AreaXray™—meaning we’ve recommended investors avoid buying here. With the majority of the suburb occupied by public housing, we saw this as a major factor restricting capital appreciation for investors.

However, things are about to change in Waterloo, and even Napoleon himself has been spotted at recent property open homes.

The government plans to demolish 750 public housing properties & replace them with 3,000 new homes. While 1,500 of these will be allocated to public housing, the remaining 1,500 will be available for private buyers, drastically altering the suburb’s profile.

Now, factor in the new Metro train line nearing completion & additional stages of renewal that will significantly dilute the number of public housing units in the area. Waterloo is becoming a serious consideration for anyone thinking about long-term investment in Sydney property.

If you would like to discuss your current property strategy for creating wealth, please get in touch.

 

Kiril Ruvinsky