PHOTO: Holiday apartments in Queensland. Credit: DAVE HUNT/AAPIMAGE
Real estate experts have issued a warning over purchasing off-the-plan units in 10 Australian suburbs, saying the risk of financial loss is high.
According to RiskWise, anyone who buys a unit in one of the suburbs should be aware the price of the unit could fall after purchase.
For investors, buying in these suburbs also comes with a risk of high vacancy rates and low cash flow.
“The equity risk, being the risk for price reduction that already had been high prior to the COVID-19, has further increased as investor activity is lower, and their awareness of the risks associated with rental apartments has increased,” Risk Wise said in a website post for property investors.
Rental returns have significantly reduced during COVID-19, with Sydney and Melbourne the hardest-hit cities.
The 10 high-risk suburbs
- Melbourne, Victoria, 3000
- Docklands, Victoria, 3008
- Mascot, NSW, 2020
- Rouse Hill, NSW, 2155
- Parramatta, NSW, 2150
- Gosford, NSW 2250
- Darwin, NT, 800
- West End, Qld, 4101
- Surfers Paradise, Qld, 4217
- Adelaide, SA, 5000
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