When looking to invest in property a common question is ‘where is best to buy?’. The question that should be asked instead is ‘where not to buy?’, because this is the mistake that will cost you the most. According to Your Investment Property, here are some of the markets that have been most unkind to investors in Australia in recent years.
Noosa Heads, QLD
Noosa is the perfect place to live with the sea on your doorstep and beaches that scream holiday. For investors it has been a nightmare five years and prices have fallen by a third. Rental yield is also low and an average of 20% is being chipped off asking prices to complete a sale.
Coochiemudlo Island, QLD
This beach-ringed island will get compliments from your friends, but financially speaking it is a bad place to invest. Most properties on the island take a year to sell and go for only 75% of the original asking price. Add the fact that values have fallen by 7% and it’s a smart move to avoid this idyllic location.
Peppermint Grove, WA
Peppermint Grove is the home of the super elite with houses selling for millions of dollars. The value of property has fallen by over a fifth though, and for a $3 million home this equates to hundreds of thousands in lost revenue.