‘No-go zones’: Ex-banker exposes Australian areas to never buy in

Some suburbs that seem like good buys on paper have been deemed “no-go-zones” in new research. Picture: Sarah Wilson Property investors trying to adapt to the loss of negative gearing benefits have been warned over emerging “no-go-zones” that are luring in new buyers with high returns that hide long-term risks. The “no-go zones” were major real estate markets across regional Australia and major capitals where rental yields were as high as 9 per cent, but underlying conditions remained weak for long-term owners. The areas were flagged in a study by investment group High Income Property, led by former senior banking executive Palash Dave, who warned investors to tread carefully. Mr Dave noted gearing restrictions taking effect in 2027, along with higher interest rates, had pushed many investors into markets with higher rental returns. But he explained that many of the properties in these markets were poor investments, offering minimal prospects of capital growth over time – or in some cases, there was a risk of values falling. No go zones included parts of inner Melbourne. Picture: Yarra River City “No-go zones” where headline-grabbing rental yields disguised weak growth fundamentals...