Where are the safest areas to invest in right now?

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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 to long- term hold period in mind.
 
STATE SUBURB TYPE Typical value ($) Stock on market (%) VACANCY rate (%) YIELD (%)
NSW ROOTY HILL U 375014 0.1 0.88 5.7
VIC BALACLAVA H 885554 0.11 1.01 4.04
ACT KAMBAH U 347238 0.05 0.88 4.85
WA GOSNELLS U 299784 0.51 0.69 6.39
QLD ROTHWELL U 299753 0 0.75 5.33
 
Source: DSRdata.com.au

 

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Top Suburbs : tweed heads south , collingwood , tiwi , cardiff south , freshwater

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Comments
  • Jackson says on 23/01/2015 10:03:33 AM

    In your last sentence you say '...a medium term hold period in mind'? Just wondering why you wouldn't also hold them long term? Or do you mean a medium term or greater hold period?

  • Nila says on 23/01/2015 04:11:39 PM

    Hi Jackson, great catch! That should say 'medium to long term hold' period. Thank you for being so eagle-eyed:-)
    -Nila

  • Sian says on 29/01/2015 01:21:42 AM

    I do not see any investment areas for Adelaide or have I missed something?

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