Do you know that there are some so-called “No Go Zones” that investors should not buy investment properties because of poor capital growth?
Sutherland Shire south of the Sydney city has been named as one of the worst areas in the nation to invest in real estate because of poor road links to the central business district and poor capital growth, according to a list of the worst places for property investment complied by analyst Terry Ryder.
For inclusion on the list, areas need to reflect overheated prices, volatility, oversupply, lack of affordability and poor track record, as well as wider issues such as pollution, noise and environmental concerns.
In NSW there are three areas named including Sutherland Shire, the inner west peninsula suburb of Breakfast Point and the beachy, hippy paradise of Byron Bay.
Byron Bay’s inclusion may surprise but the list also includes Queensland’s Sunshine Coast and Gold Coast.
“One of the least known factors in Australian real estate is that iconic sea change locations tend to have poor capital growth records,” Mr Ryder said.
“In reality, such locations often deliver inferior gains for investors.
“The Gold Coast and Sunshine Coast are perfect examples of areas that are not prime real estate, with their capital growth rates among the worst in Australia.”
The list also includes Lyndhurst, southeast of Melbourne, prestige Melbourne suburbs, Mount Isa in Queensland, Kalgoorlie in Western Australia and the Roseberry/Zeehan area in Tasmania.