The Meadowbank Property Market At a Glance
Image by MDRX, CC BY-SA 4.0, via Wikimedia Commons
Located in the northern region of Sydney, Meadowbank is an excellent option for property investors and buyers alike. With plenty of green spaces, good transport links, solid amenities, great schools, and low crime, it has become a popular choice for a diverse community and the majority of residents are renters.
If you're interested in Meadowbank, it's worth exploring more about the area and here, we cover the benefits of buying in Meadowbank and discuss the risks and challenges that come with investing in the suburb.
The Benefits of Buying in Meadowbank
The prime benefit of investing in Meadowbank is affordable property prices, especially when compared to neighbouring suburbs. The challenge is finding a unit for sale because it doesn't happen all that often. The median unit cost is $700,000, which has decreased by 1.8% over the last 12 months, but with a rental yield of 5.1%, it's a big winner.
The median rental price for a unit in Meadowbank is $630, which is an 8.6% increase over the last 12 months. It's a solid return if you're interested in investing, and it isn't just a great option for cash flow investors, it represents a solid long-term capital growth investment as well because properties are at a premium and with so many renters looking, properties get snapped up within 30 days.
Meadowbank is a prime location when it comes to easy access to shopping centres, local recreational facilities, and easy access to reliable transport links. There's a reason it's so popular, with so much to do and its proximity to the Sydney CBD, it's an ideal spot for commuters or anyone looking to live close to the city. It's also home to a ferry wharf, which might be a tourist draw at the weekends, but throughout the week it offers service to city workers commuting to and from the office.
The Risks and Challenges Associated With Buying in Meadowbank
Now that you know the benefits, let's talk about the risks and challenges that come with buying in Meadowbank.
There are plumbing concerns and that is always the case with rapid urban development. So many apartment complexes in the area have created several issues. One of the main issues is inadequate stormwater drainage, which could lead to serious water damage. If you're looking at property in Meadowbank, speaking to a local plumber is a must. They can carry out a comprehensive inspection and identify past issues and potential problems you may face if you follow through with your investment.
A local plumber knows about the flooding in the area, and the typical problems in a specific locale, and may be able to advise you on the neighbourhoods with the least flood risk. You should also familiarise yourself with the local flood zones. Luckily, Meadowbank isn't known for any severe flooding, but you do need to know the risks. Even if there aren't any particular concerns, you should look into premium insurance coverage just in case.
Another potential issue is building defects, with inspections uncovering poor waterproofing and basement cracks in apartment buildings that could be a problem in heavy rainfall. In the case of the building located at 116 Bowden Street, the inspector found 43 defects, leading to water leaks in common areas and private units. So, prospective buyers must review past inspections and have a pre-settlement inspection completed.
Final Thoughts on the Meadowbank Property Market
Meadowbank is a solid investment option if you're looking to get involved in renting out units. With a large proportion of apartment complexes and renters in the area, it's an investor's paradise. With plenty of parks, amenities, and a great location, the affordable properties and high rental yields make it a good starting point if you're just getting started in property investment.
Always carry out thorough due diligence when you're looking at any type of property, but especially an investment property. Whether you have a large appetite for risk or not, you have to consider the potential renovation costs, the ongoing maintenance of a unit, and the flood risks that may come with buying in a certain area. Enlisting the services of a thorough building and pest inspector and engaging a reputable local plumber can offset some of those risks. However, it's always important to weigh up the benefits and challenges before you make a final decision.
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