June 9 AAP - The Sydney shire that is home to the head of Australia's central bank has been named as one of the worst areas in the nation to invest in real estate.
Sutherland Shire south of the city offers 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.
Mr Ryder's latest annual "No Go Zones" report names ten places investors shouldn't venture in NSW, Queensland, Victoria, Western Australia and Tasmania.
"These are the places that I believe investors are better off avoiding - there are better and safer places to put their money," he said.
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.
"Investors need to be vigilant because the detrimental features which can harm property investment strategy are not always readily apparent - particularly in these days when investors are increasingly buying property in distant locations via the internet," Mr Ryder said in a statement on Wednesday.
In NSW there are three areas named including Sutherland Shire, where Reserve Bank of Australia governor Glenn Stevens lives, the inner west peninsula suburb of Breakfast Point and the beachy, hippy paradise of Byron Bay.
Bryon 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."
Mr Ryder's 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.
Mr Ryder, a specialist property writer, is the author of four books about real estate and compiles the no go zones list each year for his website.
Area & Reasons
Breakfast Point - expensive, poor capital growth
Byron Bay - poor capital growth, erosion
Sutherland Shire - poor capital growth, road links
Lyndhurst - pollution, poor capital growth
Melbourne prestige - volatile market, overheated
Gold Coast - poor capital growth, oversupply
Mount Isa - low returns, health issues
Sunshine Coast - low affordability, oversupply
Kalgoorlie - job losses, falling prices