Byron Bay 'no go' for investors
BYRON BAY has been labelled oneof Australia’s top 10 ‘no-go’ zones for real estate investors.
The town’s property market is volatile, shows poor capital growth and will be plagued by fears of coastal erosion, according to the man who compiled the top-10 list, national analyst Terry Ryder.
Byron property prices had inc-reased by just 8 per cent a year in the past 10 years, Mr Ryder said.
“And while that’s not a disaster, other coastal areas such as Bruns-wick Heads have done much better.
“Inland centres, such as Lismore, Kyogle, Mullumbimby and Casino have shown growth of around 13pc in that time.”
Affordability was one reason for the negative outlook in Byron, said Mr Ryder, whose claims haveangered local real estate agents.
“Research shows expensive markets like Byron Bay have poor capital growth rates because the majority of buyers can’t afford to live there, so they look elsewhere,” he said.
Controversy about coastal erosion at places like Belongil Beach would also act as a real deterrent to investment buyers in the area, Mr Ryder added.
“Byron Bay has been identified as one of the most high-risk spots on the east coast,” he said.
Mr Ryder has been a real estate investor and researcher since 1981 and is a specialist property writer.
He advised investors to head for the ‘hill-change’ towns, which were out-performing coastal centres around the county.
However, the claims contained in his annual No-Go Zones report have been dismissed by local real estate agents.
“He’s bloody mad,” said Owen Lynn, principal of Byron Bay Professionals. “Property prices in Byron Bay double very five or six years.
“It’s the best investment location outside of Sydney.”
James Young, sales manager at First National, said the forecastsignored one of the biggest factors in buying real estate: Emotion.
“I question Mr Ryder’s philosophy on investing,” he said.
“Byron Bay is one of the mostfamous beauty spots in the world.
“People come here and fall in love with the place. When you’re dealing with those kind of emotions, investment value will grow.”
Mr Young said Byron’s attractions led to a high demand for properties which, coupled with a lack of supply, would always push up prices.
He also disagreed with the figure of 8pc growth. “Our records show it is much greater than that,” he said.
Breakfast Point, NSW
Byron Bay, NSW
Gold Coast, QLD
Melbourne prestige suburbs, VIC
Mount Isa, QLD
Sunshine Coast, QLD
Sutherland Shire, NSW
* In alphabetical order