Want to know suburbs you should be avoiding when making an investment property decision? Don’t want to invest in oversupplied suburbs? Read on for a look at high-risk off-the-plan suburbs in Australia.
When it comes to matters of property investment, investing in the right location is very important. As simple as it sounds, this process is not that easy. There so many factors to consider before determining an ideal location. One of these factors is supply. As an investor, you wouldn’t want to make an investment property decision in an oversupplied area. Why? Well, chances are you won’t really see a good return on your investment. Looking at Australia right now, you wouldn’t want to invest in an oversupplied location or suburb.
Why is this so? Well, currently, Australia has a near-record amount of units being built. Furthermore, there are tighter lending standards that restrict the amount of money one can borrow. The fact that there is also uncertainty over tax policy doesn’t help things either. While some might think a rate cut by the RBA might help, I can tell you with certainty that it won’t. It is with this that we’ve opted to share with you this post on oversupplied Australian suburbs. You should look to avoid these areas/locations by all means when making your investment.
So What Suburbs Should You Avoid When Buying An Investment Property?
As already mentioned, Australia currently has a near-record amount of units being built. While units built stretches throughout Australia, there are two locations that really stand out. These two are Sydney and Melbourne.
That aside, there are two suburbs that are really worst-off-the-plan suburbs in 2019. These two are Queensland and New South Wales. Along with the growth in the number of units in the next coming two years, other factors also play to make these two worst-of-the-plan suburbs in Australia.
For instance, things like political uncertainty in the country as well as a shift in housing preferences. Furthermore, proposed labour tax changes and drop in dwelling commencements. What all this put together result in is areas of potential disaster. As an investor, you should look to stay away from such Australian suburbs.
You really need to check the suburb you plan on investing in, and see how many units or houses are being built. If there are tons of structures being built, there will be an over supply of property in those suburbs, this means when it comes time to rent out your property, you cannot command high rent due to the competition. The same goes for when you want to sell your property, if there are already a number of properties for sale in that suburb with more being built, you may have a hard time getting good price or even selling it fast.
For all your investment property needs nationwide, get in touch with Duplex Invest. We do have a team of experienced experts always ready to offer you professional assistance. Contact one of our representatives, dial 1800 600 098.