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Best rental suburbs NSW / QLD in Yield

Discussion in 'Where to Buy' started by Switchtronics, 25th Oct, 2015.

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  1. Switchtronics

    Switchtronics Active Member

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    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?
     
    Last edited: 25th Oct, 2015
  2. Biz

    Biz Well-Known Member

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    I know it's back to the future week and all but some of those figures...
     
  3. womble66

    womble66 Active Member

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    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.
     
  4. strongy1986

    strongy1986 Well-Known Member

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

    Switchtronics Active Member

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    Great work, dual dwelling or good buying?
     
  6. mja

    mja Well-Known Member

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    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.
     
  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    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.
     
    bob shovel and Biz like this.
  8. Chilliblue

    Chilliblue Well-Known Member

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    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.
     
  9. strongy1986

    strongy1986 Well-Known Member

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    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
     
  10. C-mac

    C-mac Well-Known Member

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    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?
     
  11. Dean Collins

    Dean Collins Well-Known Member

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    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%.....
     
    MTR likes this.
  12. larrylarry

    larrylarry Well-Known Member

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

    Tony Fleming Well-Known Member Business Member

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    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.
     
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  14. larrylarry

    larrylarry Well-Known Member

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    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.
     
    Tony Fleming likes this.
  15. HUGH72

    HUGH72 Well-Known Member

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    Have a look at the Broken Hill thread.
     
    strongy1986 likes this.
  16. strongy1986

    strongy1986 Well-Known Member

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    24th Jun, 2015
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    Location:
    VIC
    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
     
    Dean Collins likes this.