The Flipper’s Guide to Ry

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Ryde is a city with a suburban feel. Part of the greater Sydney area, it's a popular spot for residents and investors because it's close to the CBD and still has everything you need to live comfortably. The commercial area in Top Ryde delivers your shopping needs. There are reliable transport links, great schools, and plenty of parks and recreational areas. 

If you're considering investing in Sydney, you can't overlook Ryde. Property investment can be big business, but what do you need to look out for if you plan to buy, fix, and flip? 

Location and Market Trends

The current state of play in Ryde is consistent growth. According to the latest figures, the median house price ($2,420,000) has increased more than 2% over the last 12 months and though the median unit price has dropped by the same percentage (to $720,000), the rental yield is strong. While the rental yield for homes is 2.2%, the rental yield for units is a whopping 5.1%, a strong performance for property investors looking to get their start. 

The median rental price for a home is $950 per week and for a unit, it is $650. This shows strong growth, with an increase of 11.8% and 6.6%, respectively. 

Ryde is in a strong location. Just 13 kilometres outside the Sydney CBD, it's a popular suburb for families and young professionals who want a simple commute in and out of the city. With a tantalising mix of transport links, proximity to the city, parks, a safe environment, and a diverse community, everyone wants to be in Ryde. 

Property Condition and Renovation Potential

Given your plan to flip a property, you likely have a modest budget to renovate before you re-list a property for sale. That means it's even more important that you factor in the property's condition and the potential for renovation. Kitchen and bathroom renovations are usually the most expensive upgrades to make, so look for properties that offer quicker (and cheaper) wins. 

First, look for issues with the structural integrity and foundation. The roofing, plumbing, and wiring are all expensive fixes, and many of the older properties in Ryde will have outdated infrastructure, which might be too much for your budget.

The ideal purchase is a property that requires cosmetic renovations – a kitchen upgrade that doesn't involve tearing out cabinets or a bathroom that needs a new shower head and taps rather than a brand-new set of fixtures and fittings.

Take the age of the property into consideration – the older the building, the more likely there are to be hidden issues with plumbing or wiring that aren't up to modern regulations. 

Zoning and Development Potential 

One of the most important steps to take is familiarising yourself with zoning regulations in the area. Whether you speak with Ryde City Council directly or read up on the regulations, you need to know what your options are for future development. You might be planning to flip the property quickly, but it's good to know if there are issues that could hamper the resale value. Likewise, you want to ensure that the renovations you have planned are allowed under the council's regulations. 

Comparable Sales

The latest statistics show that 147 houses and 433 units in Ryde have been sold in the last 12 months. Properties typically spend just over a month on the market before they're sold, so you can look at similar properties for sale in the area to gauge what's selling quickly. What renovations are most popular and what features are trending? Kitchen and bathroom renovations are the most expensive, which is why prospective buyers love to see a finished product. It's all about determining whether your renovation budget can produce what the buyers want.

Will the renovations increase the resale price enough to merit investment?

Historical Flood Risks

With flooding a common issue in and around Australia, it's so important to check whether your property is located in a flood zone or in a zone at high risk of flooding during heavy rainfall. Consult the city's flood maps and historical records to find out whether a property has been affected by flooding. 

The City of Ryde completed a draft floodplain study, which is available to view. High-risk properties were tagged, so, you can ask the agent or seller if the property was tagged. However, the flood map itself is also available to view, so you can see the areas that are at the most risk and avoid shopping there. It's also worth reaching out to the local council to verify a particular home's flood zone status, and you can also ask about building regulations (or restrictions) in flood zone areas. 

This is also a good time to speak to a local plumber. They can provide advice about how to mitigate the risk of flooding and carry out an inspection to determine weak spots in the drainage system. It's important to enlist a local plumber due to their depth of knowledge of the area. They know what areas are prone to flooding and the typical plumbing issues residents in different areas face, so they can offer more insight than you realise. 

Building Age and Quality

The older the building, the higher the potential for inflated renovation costs due to non-compliance with new building codes. Be aware of structural weaknesses and the presence of lead paint or asbestos. The inspection reports should highlight any serious issues, but if the property is more than 40 years old, it's worth carrying out a more detailed inspection to be sure. 

Budget and Financials

You might think you have located the ideal investment property, but you need to follow through with the budget and financials to determine whether it's fruitful.

So, factor in the costs of purchasing the property, the costs of permits, agent fees, stamp duty, capital gains tax, etc, and the renovation costs. If the return on investment (ROI) isn't high enough, you can't justify spending the time and money on renovations. 

On average, it takes six months to flip a property but selling within that time leaves you liable for full capital gains tax while holding onto it for a year halves your liability. Can you hold onto the property for 12 months? Does that eat too much into the profit? 

Inspection Reports

Always request the building and pest inspection reports so that you can review any issues that impact the property's value. A building and pest inspection will highlight structural weaknesses, leaks, water damage, and the presence of pests. 

It's just as important that you enlist the services of a reputable (and ruthless) building and pest inspector from the local area. You want someone who knows the locale inside and out and who will spend the necessary time going over the property with a fine-tooth comb to identify issues. This pre-settlement inspection can allow you to renegotiate the price of the property if your inspector finds any issues. It can also prevent you from making a major investment mistake if you need to pull out. 

Local Amenities and Infrastructure Projects

Ryde has a lot of benefits – but how do these benefits factor into your purchase and the marketing of your property for resale? Take a look at the property's location in proximity to Top Ryde (that's where all the shopping happens), public transport links, and any other key infrastructure that increases the value of the home. People love convenience, so if there are cafes and parks nearby, it's going to boost a property's appeal which is good news for resale value once you've fixed it up. 

Various infrastructure improvements are currently being made in the area, including hospital renovations, road improvements, cycleway installations, and various park and leisure centre upgrades. You should always look at the upcoming developments in the area and consider how they might impact property values. 

Target Market

One key to a successful property flip is understanding who your potential buyers are. Ryde has plenty to offer, but are you aiming to lure in a family to purchase your flip, or are you seeking professionals? As an investor, your expectations are different when you assess a property, so when it comes time to renovate, you have to factor in who you're trying to appeal to and make aesthetic decisions to attract the right audience. 

Macquarie Park 

If you're looking in Macquarie Park, the highest demand in the area is for rental properties, and the most likely tenants are professionals or students. It represents a strong investment option for capital growth, but due to the older buildings, you need to carry out thorough due diligence. 

Ryde 

Ryde is close to amenities, has great transport links and has a lot of potential for value-adding renovations in older buildings. It also has a strong rental demand, but there's plenty of room for reselling a property to a potential landlord. The majority of the population is made up of young professionals. 

Putney

Putney is a family-focused suburb with great schools and a history of being a stable market, it has the potential for higher returns on flipped properties because families are looking for a property they can move into and unpack without worrying about fixing things. 

West Ryde

West Ryde is close to the Parramatta River and is more affordable than some of the other suburbs in Ryde. It has great potential for value-adding renovations, but due to its proximity to the river, many properties are in flood zones. It's also an area popular with young professionals. 

Hunters Hill 

Hunters Hill borders Ryde, but it's a highly sought-after suburb. Though it has strong capital growth potential, you will pay more for a property here than you would elsewhere. Still, it's an option, and it's particularly popular with families, with children representing 20% of the population, higher than the national average. 

Building Defects, Plumbing Issues & Flooding 

Ryde

Ryde has many older properties, so you need to be careful about outdated plumbing or asbestos. It's also worth looking at the flood map to determine whether the property is in an area known for localised flooding. 

Macquarie Park

With a large student presence, Macquarie Park is home to many high-rise developments which can be a problem for water ingress and balcony defects. This is something to pay close attention to. 

West Ryde

West Ryde is the most likely area in the greater Ryde area to experience flooding because there are many low-lying areas. If you're seriously considering West Ryde properties, you should pay close attention to the flood map.

Putney 

Putney is a fairly low-risk suburb, but you should always opt for a pre-settlement building inspection to be certain. There are older buildings which may be a sign of outdated plumbing, pipes, and bathrooms. 

Hunters Hill 

Hunters Hill is well-known for meticulously maintained properties, but there are still many older homes in the area, and there's always a chance that they aren't up to today's building codes. It's all about due diligence. 

Rental Returns & Demand 

If you're interested in a high-demand suburb, then there are three areas to focus your search on. 

High Demands Suburbs

Macquarie Park 

There's strong demand in Macquarie due to the business park and Macquarie University, this tends to translate to higher purchase prices and high rental yields. Many investors purchase a property to flip it, only to hold onto it as a rental property before eventually selling but you'll need to do the math on the capital gains taxes to decide whether that's worth your while. 

Ryde

Ryde is the centre of everything, and its proximity to the shopping centre and transport links make it a great option whether you're thinking about selling quickly or renting out. 

Putney 

Putney is a quiet residential area. If you want to appeal to young families, this is the way to do it because it is home to great schools, peaceful living, and is more community-focused. 

Rental Yields

If your focus is on rental yield, then there is a lot more to consider. Ultimately, yield varies depending on several different factors. You have to consider the property type, size, and condition. Units often have a higher rental yield than houses, but it's worth speaking to a local agent about what areas are ideal for this type of investment. 

Make use of rental data platforms that will give you a clear idea of rental yield, median rental income per area, and any other information that could help steer you to the right investment decision. 

Property Value Trends 

Strong Growth Areas

Macquarie Park 

Macquarie Park is always going to be a strong growth area, and that's down to the business park and the university. With a steady source of renters and buyers, it encourages continued infrastructure improvements and commercial development. This makes it a fairly safe option for first-time investors with a big budget.

Ryde

Ryde is the centre of the area, and it greatly benefits from ongoing renewal. With strong transport links and connections, it's always going to be a hub for professionals who want an easy commute to the Sydney CBD. 

Putney 

Putney is another safe investment area because it's typically a stable market. Due to the strong demand from families, it's one of the more popular suburbs for people with children. 

Pricing

Macquarie Park 

As popular as Macquarie Park is, you should expect to pay more for a property than you might in other Ryde suburbs. That is down to the limited supply and high demand. However, don't rush into purchasing a property just because it's popped up on the market and it's within your budget. Always do your due diligence. 

Putney 

The prices in Putney are lower than they are in Macquarie Park, but with a median house price of $3,7250,000, it certainly isn't the cheapest suburb in Ryde. The market has seen an increase of 8.8% in the last 12 months, and units on the market are few and far between. With a rental yield of just 1.9%, it's not a great market if you want to get into that type of investment. 

Time on Market 

The easiest way to track current market trends is to rely on online real estate portals that detail the median sale price and the amount of time properties spend on the market. That type of data can help shape your investment plan and narrow your focus to one or two specific suburbs which makes the search a bit easier. 

The less time a property spends on the market, the hotter the suburb. Not only do properties in these suburbs sell quickly, but the demand could increase the price. It's worth looking at why those suburbs are so hot – you may not have any trouble flipping a property in a quieter market once you've put in the renovation work. Prospective buyers will pay more for a finished product because they're more aware of the time, cost, and energy involved in renovations.