Image by Sardaka, CC BY-SA 4.0, via Wikimedia Commons

The Northern Sydney suburb of Denistone is located within the city of Ryde and is a short 16-kilometre hop outside of the CBD. Though the area is mostly residential, it has a bustling train station, connected to the main northern line, which makes it a popular spot for commuters looking for a quieter place to call home. 

The Benefits of Buying in Denistone 

If you're thinking about investing in Denistone, there are several benefits to consider. 

The strong transport link is one of the biggest benefits because commuting to the CBD or its surrounding areas is a fairly straightforward trip for non-drivers and those looking to avoid traffic. 

Denistone is close to the Sydney CBD, but it's also close to Ryde and Meadowbank, so there are plenty of local shops, parks, reserves, sporting facilities, and schools in the area. Darvall Park is located near the railway line and this forest has plenty of flora to explore, you may even spot some of the local wildlife, the area is known for ringtail possums and Australian king parrots. 

While it's predominantly residential, there is an industrial presence and the business parks provide property investors with plenty of rental demand, whether it's a commercial property or a residential one. With lots of jobs in the area and its surrounds, there will always be people looking for a rental. 

The population in Denistone is currently fewer than 4,000 people, but it's classed as one of Sydney's up-and-coming suburbs. There are pockets that have been revitalized, which opens the door for future capital growth as more investors explore their options in the area. 

There are plenty of stunning properties in Denistone, but some of them can boast attractive views. So, if you're looking for a property with a big resale value or that will attract the right kind of tenant, a view of the Parramatta River could be an extra tick in the must-have box. 

The Risks and Challenges Associated With Buying in Denistone

With the benefit of spectacular views, so must potential buyers consider the risks and challenges with buying in Denistone. That very view of the Paramatta River is one of the foremost risks of buying in the area. During sustained periods of heavy rainfall, the risk of flooding in Denistone increases and that doesn't just impact the structural integrity of a home, it also increases insurance premiums and could limit your development options. 

So, before you buy, you must familiarise yourself with the flood risk of the home and neighbourhood. The greatest risk in this particular area is East Denistone, but wherever you choose, you should enlist a local plumber who knows the area inside and out. They can offer advice on flood risk and the steps you can take to mitigate the risk of damage. Likewise, a building and pest inspector can advise whether there has been previous flood damage to a home. 

There are a lot of older properties in the area and that could mean significant costs for maintenance and renovations. Again, this is something a plumber and inspector can offer you advice on. 

Though the area is predominantly residential, with a rise in industrial interests, it's worth checking out the local area to ensure the noise levels and air quality are within your desired range. Due to an increase in residential development, there is a risk for an increase in traffic and that's always something to consider when you're property shopping in an up-and-coming suburb. 

Finally, it's for these very reasons you may find yourself among many investors looking to buy in the area. When it gets too competitive it can lead to higher prices and lower rental yields, so do your due diligence. 

Denistone Investment Considerations 

As a property investor, you always have to carry out thorough due diligence before you put your money where your mouth is. You should speak to a local plumber and a qualified surveyor about flood risks and enlist a building and pest inspector to check out a potential investment. 

Denistone is a wonderful suburb and as an up-and-coming hotspot, you should carefully consider the area before you buy. Take the transport, flood zones, and amenities into consideration because you may have the budget to address the flood concerns if the rest of the boxes on your investment checklist are ticked. 

You can't afford to ignore the property market's statistics. Rental yields for houses in Denistone are at 2% while units are a whopping 3.5%. While homes have a median house price of $2,365,000, a 9% increase over the last 12 months, units are sitting at $1,451,000 with a growth of 19.7%. The median unit rental price per week is $790, so that's something to keep in mind as you consider your options. 

You should always consider council regulations for the area and whether you have the potential to extend or renovate a property as that may hinder your plans. Regardless, Denistone offers serious potential for long-term capital growth, but you need to weigh up the risks and benefits before you make an investment decision.