Where are the safest areas to invest in right now?

As talk of a looming property market downturn continues to gather pace, investors are once again seeking investment safe havens that will help them ride out the uncertainties.

There’s no doubt that the rapid growth in property prices during the past 12 months has started to moderate.

You only have to look at the latest CoreLogic RP Data results to see that even and Sydney and Melbourne are now recording slower price increases.

While talk of an extensive fall in prices has become more prevalent in the national media lately, it’s important to note that there hasn’t been any evidence of a widespread downturn.

Most markets around Australia are still enjoying some degree of growth from one month to the next.

However, if you believe there is a looming downturn and want to invest securely, you may want to consider the following safe havens.

These are areas that are largely protected from any sustained down turn thanks to their desirability, consistently high demand and relative affordability.

The suburb which is the standout for NSW is Rooty Hill, located 42 kilometres west of the Sydney CBD.

The area has a number of drawcards, including affordable units, a train station, good local schools, parks and a large sports facility.

Meanwhile, Gosnells (WA) and Rothwell (QLD) both include units which have a typical value just under $300,000 and healthy yields of 6.39% and 5.33% respectively.

While the areas outlined here should provide a high degree of security in an otherwise volatile market, they should still be purchased with a medium term hold period in mind.

  • SHARE

Disclaimer:

This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).

Please consult your financial advisor, solicitor or accountant before acting on information contained in this publication.