What you need to know about buying luxury property

Luxury real estate in Sydney’s CBD and Pyrmont has proven resilient in 2023 in both sales and leasing, despite broader economic factors.

If you are looking to buy premium property in Sydney CBD, Pyrmont, Circular Quay, Millers Point, Barangaroo or any of the surrounding city suburbs our tips below may help you reach your property goals sooner.

Choose an iconic location

In most cities, iconic locations are more likely to hold and increase in value. Waterfront properties and those with views will usually also perform well in terms of gains over time. For example, in Sydney properties in Circular Quay, The Rocks, Hyde Park, Pyrmont waterfront and Barangaroo are in high demand due to their exclusivity, proximity to the city, arterial roads and some of the best attractions that the city has to offer. The location of a luxury property often supersedes the quality of the finishes when it comes time for resale.

Form an advisory team

Before you commence your search for luxury property find a great mortgage broker, real estate agent, and conveyancer/solicitor. A broker will be able to source the best loan product for your circumstances from a range of providers. A real estate agent with knowledge of the local market will be able to show you suitable properties, assist with negotiations and give you access to exclusive off-market properties. They may even be able to recommend other properties in similar precincts that you may not have initially considered. When selecting legal representation ask about their availability and what you can expect in terms of response times. Speed and efficiency are important when it comes to securing your dream property.

Don’t get caught up in market media hype

Interest rates are undoubtedly higher than they have been in the past year however, historically they are at an all-time low. Over time most quality properties in Sydney will produce abundant gains despite interest rates. The silver lining for investors is that the rental market is buoyant in Sydney right now. Significant demand means rental returns are generally high and vacancy rates are low. For owner-occupiers, a subdued market makes for great buying opportunities and more choice.

Choose low-maintenance properties

If you are buying for investment low maintenance properties like apartments are a great choice. Large luxury homes, especially those on the waterfront, can attract significant maintenance costs. Luxury apartments are mostly strata title in Sydney. Being aware upfront of your quarterly strata levies, which encompass most maintenance costs, allows you to better forecast ongoing expenses. It also means that these maintenance tasks are managed for you, saving you time. Consider your lifestyle, most buyers looking at luxury properties are seeking flexibility and freedom rather than additional responsibilities, prestige apartments offer a “lock-and-leave” lifestyle that may be appealing to many premium buyers.

Do your due diligence

Doing adequate due diligence is important when investing in luxury property. A strata search will inform you of any current or pending issues in the building that may require attention. It would also be prudent to do some research to gain an understanding of current or upcoming developments in the area. Upgrades to amenities in the local area can offer additional growth for your property in the long term however it’s important to be aware of any impediments to the property such as surrounding construction, which you may not be amenable to. Discuss local projects and developments with the real estate agent representing the property, do your own research online or contact the local council.

We are for apartments.

If you are considering buying or selling your apartment in Sydney City, Millers Point, Circular Quay, Pyrmont or surrounds, we would love to help you. Ayre Real Estate are specialists in apartment living and ready to help find your ideal property. Talk with us today to find out more.