Many investors rely on a rule of thumb ‘7-10’. This loosely means
1. A property with a 7% capital gain will double in price over 10 years
2. A property with a 10% capital gain will double in price over 7 years
For long term capital investors, gaining a high capital gain property will require a block of land to increase in value along with the property. For that reason, most investors will need to be outside the inner Sydney region for pure cost reasons.
Other than land, there is a requirement for
1. Quality home, that will not require substantial upkeep in the 10 years – this may mean buying new off a reputable builder
2. Access to motorways toward city centres
3. Easy access to train stations
4. Proximity to satellite cities. Right now, our pick is areas between Penrith and Parramatta
5. History of growth – with known growth factors
6. Primary and Secondary schools. Preferably a university nearby
7. Medical facilities
With all these in mind, we’ve found that Werrington ticks all the above boxes, and is currently at a annual capital growth of 9.75%. That is excellent, and also, the location is well placed for the ’30-minute city’.
We’ll be reviewing and trying to obtain any opportunities in this area over the following weeks.