Top 10 suburbs to avoid when buying off-the-plan in 2018
If you’re thinking of buying a property off-the-plan, you have to be extremely confident of the suburb it’s in. One business has located the most recent top 10 worst possible suburbs to commit such a purchase.
Research company RiskWise Property Review has updated its top 10 suburbs to avoid for investors considering investing off-the-plan.
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Analysing over 3,000 suburbs, the company has released the top 10 suburbs from their “Danger Zone” list for 2018, determined from RiskWise’s algorithms and tools.
According to RiskWise, the top 10 worst suburbs for purchasing off-the-plan are:
|Rank||State||Suburb||Post code||New units in the next 24 months||Percentage of new units|
Doron Peleg, CEO of RiskWise, mentioned the appearance of several city centres in the list was not surprising, with Brisbane the highest ranking city centre this year and allegedly blacklisted by lenders.
“In 2017, over 5,300 units were completed in Brisbane, with another 11,000 in construction,” Mr Peleg said.
“What we’re currently seeing on the market is a lot of incentivised advertising, from offers of full furnishings included, through to a free car on settlement.”
Zetland was ranked number one in this revised ranking. The area, located four kilometres south of Sydney’s CBD, is currently in an advanced stage of gentrification with high density units and apartments, has an influx of over 5,000 new units being introduced to the area and nearby Waterloo.
“We would advise any investors looking at off-the-plan purchases to know what to look for and the degree of risk involved,” Mr Peleg said.
“Buyers should arm themselves with an in-depth analysis on the suburb’s ability to absorb the new unit supply, and the potential impact on future capital gains.”
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