Is buying a property in Maroubra a good investment?

Last updated on December 20, 2023

Yes, the analysis of Sydney's property market is included in our pack

If you've savored the beachfront beauty and seaside attractions of Maroubra, you may have envisioned securing a property in this scenic Sydney district, enjoying its coastal lifestyle and natural surroundings.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Australia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Maroubra?

Maroubra, a suburb located in Sydney, has become an increasingly attractive location for property buyers, and there are several reasons for this trend.

Its unique attributes set it apart from other real estate markets in Sydney, making it a desirable choice for a range of potential homeowners.

One of the most significant draws of Maroubra is its stunning beach. This beach, known for its beautiful sands and surf, is less crowded compared to the famous Bondi Beach, offering a more relaxed and intimate coastal experience.

This natural allure is a major factor that has contributed to Maroubra's popularity. Imagine living where every day feels like a vacation, with the beach just a stroll away - that's the lifestyle Maroubra offers.

Maroubra's rise in popularity began in the early 2000s. Initially, it was overshadowed by more well-known suburbs, but as property prices in these areas soared, buyers began to look for more affordable yet still desirable alternatives. Maroubra emerged as a perfect blend of affordability and lifestyle.

This trend is likely to continue. The suburb maintains a balance between urban convenience and natural beauty, which is hard to find in Sydney. As long as these elements remain, the hype around Maroubra is likely to persist.

The suburb attracts a diverse group of people. It's popular among young professionals and families who are drawn to its lifestyle and relatively more affordable housing compared to Sydney's inner-city areas.

The community vibe, coupled with good schools and parks, makes it family-friendly, while the vibrant beach culture appeals to younger individuals and couples.

However, like any area, Maroubra has its weaknesses. One of the notable concerns is its distance from Sydney's CBD. Commuting can be a challenge, especially during peak hours. This might be a turn-off for those who prioritize proximity to the city center for work or leisure.

Additionally, while Maroubra has developed significantly, it doesn't offer the same level of dining and shopping experiences as some of the more upscale suburbs. For those who crave a bustling city atmosphere, Maroubra might feel a bit laid back.

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Why is Maroubra a nice place to live?

Maroubra, located in Sydney, is often praised as a nice place to live, and this can be attributed to a variety of factors, from its lifestyle and culture to the amenities it offers.

Understanding these elements can provide a comprehensive view of what life in Maroubra is like.

The lifestyle in Maroubra is predominantly centered around its stunning beach, which defines much of the local culture. This beachside vibe contributes to a relaxed and community-oriented atmosphere.

Residents often engage in outdoor activities, fostering a healthy and active lifestyle. The culture here is a blend of laid-back beach life and urban convenience, giving residents the best of both worlds.

The expat community in Maroubra is quite diverse, with people from different parts of the world calling it home. This diversity enriches the local culture, introducing a range of international influences to the area.

When it comes to cost of living, Maroubra is generally considered more affordable than Sydney’s more central suburbs.

However, given its desirability and beachside location, it's still on the higher end compared to other areas in Australia. Property prices and rents reflect the demand for this sought-after location.

Maroubra is well-equipped with amenities and facilities. For educational needs, there are several schools including Maroubra Junction Public School and South Sydney High School.

Healthcare facilities are readily available with the Prince of Wales Hospital in nearby Randwick. Shopping needs can be met at Maroubra Junction which hosts a range of stores and eateries. Pacific Square shopping center is another popular spot for locals.

The quality of infrastructure in Maroubra is quite robust. Roads are well-maintained, and utilities function reliably. Internet connectivity is generally good, which is vital in today's connected world.

In terms of accessibility, Maroubra is well connected to other parts of Sydney. It’s not too far from the city center, making it a convenient location for those who work in or frequently visit the CBD. The suburb is also reasonably close to major transport hubs like Sydney Airport, making travel relatively hassle-free.

Public transportation options are varied, with several bus routes servicing the area. These buses connect Maroubra to key parts of Sydney, including the CBD, making it easy for residents to commute or explore the city. While it doesn't have a direct train line, the efficient bus network compensates for this.

How much does it cost to buy real estate in Maroubra?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Australia.

Buying a property in Maroubra can vary significantly in cost depending on several factors, including the type of property, its location, and current market trends.

In Maroubra, a diverse range of residential properties is available. You'll find everything from apartments and townhouses to standalone houses and, in some areas, more upscale properties like luxury villas.

The type of property in high demand tends to vary, but there's generally a consistent interest in beachside homes given Maroubra's coastal location.

The allure of living close to the beach, combined with the suburb's relative affordability compared to other beachside Sydney suburbs, makes houses near the beach particularly sought-after.

Regarding the nature of the properties available, Maroubra offers both new developments and resale properties. In recent years, there has been a surge in new apartment complexes, catering to the growing demand for modern, low-maintenance living spaces.

However, the suburb still retains a significant number of older homes, many of which offer the potential for renovation or redevelopment.

The price range for properties in Maroubra can vary widely. The average price per square meter for an apartment could range significantly, often depending on factors like proximity to the beach, views, and modern amenities. Houses, particularly those closer to the beach or larger in size, typically command higher prices.

Property values in Maroubra have experienced fluctuations over recent years, largely influenced by broader trends in Sydney's real estate market and economic factors. Prices have generally trended upwards, reflecting Sydney's overall property market dynamics and Maroubra's increasing popularity.

Looking ahead, any upcoming developments or city planning changes could impact property values.

For instance, any major infrastructure projects, improvements in public transport, or new commercial developments can make the area more desirable and push up property prices. It's important to keep an eye on local council plans or state government initiatives that might affect Maroubra.

Predicting the future real estate market in Maroubra involves considering various factors, including economic conditions, interest rates, and local developments.

Given Maroubra's appeal as a coastal suburb with relatively more affordable options compared to central Sydney, it's likely to remain a popular choice for a diverse range of buyers.

Specific factors that could indicate a potential increase in property values in Maroubra include ongoing demand for coastal living, improvements in local amenities and infrastructure, and Sydney's overall growth as a global city.

If Maroubra continues to develop while retaining its unique beachside character, it could see sustained or increased interest from property buyers.

Remember, property markets can be unpredictable, and it's always wise to conduct thorough research and consult with real estate professionals before making any investment decisions.

Where is the best area to buy a property in Maroubra?

Choosing the best area to buy a property in Maroubra can be influenced by a variety of factors including atmosphere, property types, and prices.

Maroubra, known for its beautiful beach and community feel, offers diverse areas each with its own unique appeal.

Firstly, the areas closest to Maroubra Beach are highly coveted. This zone is characterized by its laid-back, beachside atmosphere, appealing to those who love the ocean and outdoor activities.

Properties here are a mix of older-style homes and modern apartments, often with views of the ocean. Due to their desirable location, these properties typically come at a premium price.

Moving away from the beach, the central parts of Maroubra, around Maroubra Junction, offer a more urban vibe. Here, you'll find a greater concentration of apartments, including newer developments. These areas provide convenient access to shops, cafes, and public transport, making them attractive for those who value proximity to amenities.

The prices in these areas can be more moderate compared to beachfront properties, offering a balance between location and affordability.

There are also up-and-coming areas within Maroubra that buyers should keep an eye on. Neighborhoods undergoing redevelopment or with planned infrastructure improvements could be potential hotspots for future value growth.

However, specific names of such areas weren't specified, but staying informed about local council plans and upcoming developments is a good strategy for identifying these opportunities.

When looking for a property in Maroubra, areas around parks and schools are also worth considering, especially for families. These locations offer a sense of community and are often quieter, yet still provide easy access to Maroubra’s main attractions.

On the contrary, some areas might be less advisable depending on your preferences and needs. Areas further from public transport links or main amenities might not be as convenient for those who rely on these services.

Additionally, some streets closer to major roads might experience more traffic and noise, which could be a downside for those seeking a quieter environment.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Australia.

Area	Atmosphere	Property Types	Price Considerations
Near Maroubra Beach	Laid-back, beachside	Mix of older homes and modern apartments, often with ocean views	Premium prices due to desirable location
Maroubra Junction	Urban, convenient	Greater concentration of apartments, including newer developments	Moderate prices, balance between location and affordability
Up-and-coming areas	Varies	Dependent on development plans	Potential for future value growth
Near parks and schools	Community-focused, quieter	Varied, suitable for families	Depends on specific location
Areas further from public transport	Less convenient	Varies	Potentially less expensive but less convenient
Near major roads	Possibly noisier due to traffic	Varies	Potentially less desirable due to noise

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Is there a strong rental demand in Maroubra?

Maroubra is known for its strong rental demand, influenced by its desirable location and range of amenities.

Understanding the nature of this demand, including the target demographic, types of properties sought after, and potential returns, is crucial for anyone considering investing in rental properties in this area.

The rental demand in Maroubra caters to both short-term and long-term rentals, but the demand for long-term rentals tends to be more predominant. This is primarily because Maroubra, with its relaxed beachside atmosphere and community vibe, attracts individuals and families looking for stability and a high quality of life.

The target demographic for rentals in Maroubra is quite diverse. It includes young professionals, small families, and university students, especially those attending nearby institutions like the University of New South Wales.

These groups are typically looking for properties that offer a balance of comfort, convenience, and access to lifestyle amenities.

When it comes to the profiles of potential tenants, young professionals often seek modern apartments or townhouses that are low maintenance and close to public transport and entertainment options.

Families, on the other hand, might prefer larger homes, ideally with outdoor space and in proximity to good schools and parks. University students generally look for affordable, functional living spaces, often favoring locations that are within easy commuting distance to their campuses.

In terms of specific areas within Maroubra, properties near the beach or Maroubra Junction are particularly sought after. The beach area attracts those who are drawn to the coastal lifestyle, while Maroubra Junction offers the convenience of shops, cafes, and transport links.

Amenities that can help to reduce vacancy and attract tenants include updated interiors, parking spaces, proximity to public transport, and access to local community facilities like parks and recreational areas.

Properties that offer these features tend to be more appealing to potential renters, thereby reducing the likelihood of prolonged vacancies.

Regarding potential returns on investment, properties in Maroubra can offer attractive yields, though the exact figures vary based on property type, location, and market conditions.

Generally, well-located properties, especially those near the beach or key amenities, can command higher rents, potentially leading to better returns.

Recently, there's been an increasing demand for certain types of properties in Maroubra. Apartments and townhouses that offer modern amenities, energy efficiency, and smart home features are becoming more popular, especially among younger renters who value sustainability and convenience.

Investing in such properties could potentially offer better yields, as they align with the preferences of a significant portion of the rental market.

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Is it easy to buy a property as foreigner in Maroubra?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Australia.

Buying property in Maroubra, Sydney, as a foreigner comes with its own set of challenges and considerations.

While it's feasible, there are specific regulations, processes, and risks that foreign buyers need to be aware of.

Firstly, Australia has certain regulations for foreign property buyers. The Foreign Investment Review Board (FIRB) oversees these regulations, which typically require foreign buyers to obtain approval before purchasing property in Australia. This is particularly relevant for residential real estate.

The FIRB examines applications to ensure they align with Australian property investment regulations. This process can add time and complexity to the property buying journey for foreigners.

The purchasing process in Maroubra follows the standard Australian property buying procedure. Once a suitable property is identified and an offer is made, the process involves exchanging contracts and paying a deposit, followed by a settlement period before the final payment and transfer of ownership.

There are several risks associated with property investment in Maroubra. Market fluctuations can impact property values, and being a coastal area, properties might be subject to environmental factors like coastal erosion or changing weather patterns.

It's also important to be aware of local zoning laws and any future development plans, as these can affect property values and livability.

A classic pitfall for foreigners investing in Australian property is underestimating the importance of local market knowledge. This includes understanding the nuances of the Maroubra real estate market, from property valuations to rental demand trends.

Unique to Australia are factors like stamp duty, capital gains tax, and property management norms, which can be different from other countries.

Working with a local real estate agent or lawyer is crucial. They can provide valuable insights into the local market, assist with navigating Australian property laws, and help ensure compliance with FIRB regulations.

Their expertise can be particularly beneficial in handling negotiations, contract preparation, and understanding tax implications.

Common exit strategies for property investors in Maroubra include selling the property for capital gain or holding it to generate rental income. The choice of strategy often depends on market conditions and personal investment goals.

Some investors might also consider property development or renovation as a way to add value before selling.