Australia’s 13 worst places to invest

[Gentle_Chief]

A Terry Ryder's report from hotspotting.com.au is the "No Go Zones - 13 Worst places to Invest in Australia".

Interested to know if anyone read that and if so, was there anything special one should look out for?!

Cheers,

 

[grossreal]

hi
were is the link to read

 

[twobobsworth]

Was discussed here chief

http://www.somersoft.com/forums/showthread.php?t=41599&highlight=RYDER

 

[Gentle_Chief]

I wish if I could get it for free, Grossreal!!

Its a report priced at $70, but comes free when one buys two hotspotting reports.....

Cheers,

 

[Gentle_Chief]

Thanks for that, Twobobsworth......before I posted I searched the past threads with keywords, but could not find any posts!

Anyways, for the people who missed the previous thread, the places property investors should avoid ***according to Mr.Terry Ryder***

* Bankstown, western Sydney, NSW
* Blacktown, western Sydney, NSW
* Darwin, northern suburbs, NT
* Dinmore, Brisbane, Qld
* Esperance, southeast, WA
* Giru, north Qld
* Kalgoorlie, outback WA
* Katherine, outback NT
* Lyndhurst, Melbourne, Vic
* Mount Isa, western Qld
* Parramatta, western Sydney, NSW
* Shepparton, northern Vic
* Sunshine Coast, Qld

 

[Gentle_Chief]

whom to believe?!

Classic fallacies of experts:

Residex quarterly Best Rent report (I have a yearly subscription at 850$) list Katherine NT as a Top buy.

And Terry Ryder's report lists Katherine NT as one the 13 worst buys nationally!



Guess it is all a point of view at the end of the day!

 

[mja]

Classic fallacies of experts:

Residex quarterly Best Rent report (I have a yearly subscription at 850$) list Katherine NT as a Top buy.

And Terry Ryder's report lists Katherine NT as one the 13 worst buys nationally!



Guess it is all a point of view at the end of the day!

Personally I'd trust John Edwards over Terry Ryder any day of the week... but hey.

 

[PWL]

I am quite surprised that he has included the sunshine coast in that report.

 

[Rockstar]

I am quite surprised that he has included the sunshine coast in that report.

I recall that John Edwards gave a general thumbs up for the Sunny Coast at a recent seminar in Brisy. Like anywhere else there are niche markets within any area that will outperform where others will languish. It's up to us to keep our eyes open for the gems.

 

[natmarie73]

Did he say why these were the worst places to buy? Obviously different investors have different goals and strategies so what may be one person's trash is another's treasure.

My sister baught a block of units in Mt Isa a few years ago and they have done very well for her.

 

[evand]

You might be jumping the gun mate. Are the lists for the same thing? I don't think so.

Katherine might be number one for rental yield and number 100 for capital growth. Or vice versa.

John Edwards has a much bigger barrow to push than Terry Ryder. Its very rare you see JE talk the market down, if ever.

I think he has studied from the REI book.

Classic fallacies of experts:

Residex quarterly Best Rent report (I have a yearly subscription at 850$) list Katherine NT as a Top buy.

And Terry Ryder's report lists Katherine NT as one the 13 worst buys nationally!



Guess it is all a point of view at the end of the day!

 

[Gentle_Chief]

You might be jumping the gun mate. Are the lists for the same thing? I don't think so.

Katherine might be number one for rental yield and number 100 for capital growth. Or vice versa.

John Edwards has a much bigger barrow to push than Terry Ryder. Its very rare you see JE talk the market down, if ever.

I think he has studied from the REI book.

Hi Evand,

Your post suggests JE and TR are looking at Katherine NT and one is suggesting to buy in there while the other is suggesting to sell out (or not buy in there) due to two different sets of factors.

Residex rates Katherine NT in the top 100 nationally as follows:

Current Yield - 6.02%
Predicted estimated growth - 6+% over the next 5 years annually
Median value - 234,500
Median rent - $270pw
Suburb rating - 3 out of 5 stars (no one gets a 5 out of 5, max is 4 out of 5 that I've seen)

As any investment takes only two things into account - yield + capital appreciation, I beg to differ why two prominent experts can see two sets of completely ambiguous, different pictures of a small town with 8400 residents only. We are not talking of a large council like blacktown or a big chunk of an area like sunshine coast where there may be many pockets with different investment spectrums.

 

[stumunro]

we've discussed it before but residex can be a bit of a self fulfilling prophecy.

Not that that has anything to do with what you are talking about

2 different experts, 2 different opinions. i dont know if it is that big of a deal

im not sure i agree with sunshine coast / parramatta on ryders list either

 

[quoll]

I just happy that greater Adelaide didn't show up. It's all about perception and the more people that read reports or listen to experts the more we see the herd reacting and when a part of the herd reacts often the rest will follow.

I think we saw a similar thing with the Rivkin report for those that remember. How does the majority of the population react to the information that is provided.

cheers
Graeme

 

[steveadl]

Terry's report may be referring to his worst suburbs for this year? ie. next year it will be a different 13 suburbs.

I don't think he means that Sunshine cost will be the wort place to invest indefinitely, just for the next year or two?

Remember it's also a good way to get publicity for his website - his last couple reports of cheapest and then worst places certainly grabbed the headlines in the mainstream press.

 

[evand]

Its probably because one or both of them have different self interest. But its only one example of many from both of them.

I beg to differ why two prominent experts can see two sets of completely ambiguous, different pictures of a small town with 8400 residents only. We are not talking of a large council like blacktown or a big chunk of an area like sunshine coast where there may be many pockets with different investment spectrums.

 

[Ajax]

Darwin, Northern suburbs is also there as in the ten worst places (he has written off not just one suburb but the whole area).

Have read research lately suggesting Darwin's northern suburbs are under-valued compared with the rest of Darwin and should offer good capital gains.

 

[Highlygeared]

Terry's from Melbourne I think - personally I would not take advice from anyone about an area if they're not a local. the knowledge really has to get down to street level, not just the suburb.

Parra and Blactown shouldn't be on the list (cant comment on Bankstown - never invested there before/done research but based on anecdotal evidence, its one area I choose to ignore).

I bought a 3/4 bed house with 2 baths in a good pocket in Lalor Park (for Lalor Park) for
$260K late last yr. Its rented for $260 pw but could easily fetch $330 pw if it became vacant. Based on what I know it would sell for at least $260K if not more, even now, so while cap growth is negiligible, the house is working its way up to 7% gross yield fairly quickly.

If/when rates come down, this baby will be positively geared and i'm sure will also get good growth when the next boom hits. I think the entire precinct west of Baulkham and east of Doonside is great value for long term holders...why on earth wouldnt Terry recommend it? Mortgage stress and repo's wont last forever.

 

[marg4000]

Terry said he lives in the Sunshine Coast hinterland.

His objection to investing in the Sunshine Coast included the lact of infrastructure. Hello??? This applies to ALL of south-east queensland and possibly other capital cities as well.

At least the sunny coast has plenty of water, all their dams are overflowing!!
Marg

 

[yo yo ma]

This applies to ALL of south-east queensland and possibly other capital cities as well.

At least the sunny coast has plenty of water, all their dams are overflowing!!

Sssshhhhhh... we are trying to keep that quiet