Best rental suburbs NSW / QLD in Yield

With all the recent talk of Apra lifting investment rates now more than ever is the time to be looking for high yielding returns to aid in future lending and loan serviceability.

Sydney has been a hot topic and QLD has been commented alot lately so thought Id highlight a couple of suburbs with good yields.
STATE SUBURB YIELD MEDIAN RENT MEDIAN PRICE
NSW WEST KEMPSEY 7.5% $250 $187K
NSW BARRACK HEIGHTS 6.6% $315 $250K (units)
NSW KOONAWARRA 5.6% $370 $344K
NSW NORTH ALBURY 6.5% $275 $220K

Barrack heights and Koonawarra have vacancy rates under 1%

QLD LOGANLEA 8.6% $315 $190K (units)
QLD BEENLEIGH 7.3% $265 $189K (units)
QLD DINMORE 7.0% $275 $205K
QLD EAGLEBY 6.1% $315 $254K

#DINMORE HAS A VACANCY RATE UNDER 1%

As sourced from your investment property November 2015

Whats the best roi you have found in tge current market?

 

I know it's back to the future week and all but some of those figures...

 

And I wouldn't live or buy in either suburbs but if you twisted my arm maybe I would go Barrack Heights but it would need a drive past to ensure its not in a ghetto.

 

well i have a place for sale with 10% yield in nsw

 

Great work, dual dwelling or good buying?

 

My most recent purchase in Wellington, NSW is 9.2% gross yield (3 bedroom house, PP $118k, rent $210/week), with my next one being 10.2% (PP $94k, rent $185/week). The suburb is not everyone's cup of tea, but works for my portfolio. Both of these properties have tenants and are 'good to go' from settlement.

 

It is possible to buy high yielders in regionals no problems. But the question you have to ask is "should you?"

If an investor has a 8-10% yielder for sale, you have to ask why. They may well be able to get 10%, but thats only IF they can get a tenant and only IF the house isnt on fire or in arrears or being evicted or trashed.

 

Be careful of figures. I can tell you Barrack Heights rentals and in fact 2528 postcode does not have the same heat in the rental market as it did a month or two ago so the rental nominated may not be achievable and if it is, it may be sitting vacant for a few weeks.

 

bought cheap and have rennovated
planning to sell with tennant

nothing wrong with the property just doesnt suit my goals at this point in time

 

Thought I'd resurrect this thread a bit - has anyone here purchased an IP in any of these areas?

Interested to hear of any investor experiences in Kempsey, NSW, particularly. Obviously I'm aware of the pitfalls of tenant-quality, prospect of flat or zero capital growth in a town like this etc.

Some questions I have:

1) Local agents have been quoting me some wide variance in management fees. Obviously agents want to be paid well for what I'm sure is hard yakka in terms of managing some (sometimes!) horrible tenants. But rates have been quoted as low as 7% + GST through to 12% + GST! Some agents flat-out refuse to even take on tenants in properties in South Kempsey specifically!

2) Opportunity to add value? I've seen some substantially cheaper 2-bed houses in ok-ish streets/areas (well, comparatively speaking!) in Kempsey suburbs. Is it worth the time/$$$/energy to convert these to 3-bedroom and get rental rates up from that $200-ish rate to $260-ish rate?

3) Leading on from #2 above... I'm very aware that with flat/zero capital growth prospects, any hopes for CG need to be manufactured. But what are the ways to manufacture even a shred of CG? Is a bedroom extension best? Tidy kitchen/bathroom? (Do these tenants really even care or is newer kitchen/bathroom simply overcapitalising?). What about adding sheds to the backyards for tradies to store tools/do extra work out back?

4) With the highway now several years into being diverted away from the town centre, what effect has this had in Kempsey? Is this a positive or negative for the local population? Are there any green shoots in this town for jobs growth or is it truly a dead-end town economically, for the foreseeable future?

 

and 10% on what you purchased it for X years ago....versus what its valued at today..... (there is a big difference)

What did you buy it for @strongy1986 ?
When did you buy it?
How much is it valued at today?
How much is it renting for today?
How much are the expenses (excluding debt)?

Then tell me it really works out to be 10%.....

 

A lot of land for sale that I can see on re.com

 

Good old Albury making the list. My latest purchase there with a little $4k Reno got 9.3% yield and tenanted in four days of been advertised. Regionals are risky but if you have a good PM and know what tenants want in a property for that region it mitigates the risk significantly.

 

I continue to monitor Albury. You did well. I was las told that a lot of supplies coming up and to hold my horses for a bit longer.

 

Have a look at the Broken Hill thread.

 

48k
October 2015
100k (revalued for equity drawdown)
$200 a week
Rates - $750, water $500, pm fees 10%, insurance $600
It actually works out to be almost exactly 10% after those expenses (my overall cost including the renno, travel, accom, int - is about 72k)
Its not for sale anymore, i like it. I was a bit skeptical to begin with but i would do it again when i have some spare time