NSW Best rental yield suburbs in Sydney

Hi All, just came across this page showing best rental yield suburbs in Sydney:
Top 10 Sydney suburbs for yield and growth

Not sure, how much this holds true in present scenario. Is anyone still investing in Sydney areas aiming the property to be least negatively geared as possible and targetting capital growth as well OR everyone investing out of Sydney thinking that steam in Sydney has cooled down now for a couple of years now.....

Also, which suburbs in Sydney do you think have best rental yields at the moment...

Thanks!

 

Hi Nish,

From that list it seems looking west of Sydney is the way to go.
The median prices looked off initially but then I saw it was published in May 2015.

The Central Coast area (Tascott, Point Clare, Woy Woy) may be worth look at for slightly-negative gearing. Bought a place there last year for $620k and the rental income after fees and repayments was only down -$400/mth. The area seems popular with retirees and families who have roots in both Sydney and Newcastle.

 

Thanks @Zoolander
Any more experiences or thoughts here please???

 

Outer suburbs of all cities will always have the best yields , this is simply because rents aren't that much cheaper yet purchase price (denominator in yield formula) drops drastically.

Not sure if yield should be the only concern though. Its my view that all returns across all asset classes are risk adjusted and / or work adjusted.

 

Buying in Sydney now means you are most likely to be negatively geared unless you have a grannyflat in the backyard to boost the yield. The entry price is high and rent does not cover mortgage repayments and other fees. The yields published in the link are probably gross yield. Are you looking to buy your first IP in Sydney? Many on this forum have gone outside Sydney metro.

 

Thanks @D.T. and @larrylarry for your inputs.
My view here was to assess Sydney pockets where still one can manage to be least negatively geared as compared to other parts of Sydney in City and west. My thinking behind this is that Sydney will continue to grow in future irrespective of a quiet period in between. So, want to identify areas where I can afford to buy in Sydney and can get good capital growth long term but same time also able to afford it with minimum cash outflow.

 

This article is from May 2015. I own in some of the markets listed and you would be lucky to get a 5.0% yield now (Jan 17). And given that most of the properties listed are units, you have strata on top of that, so hardly solid yield. If you are asking if I would be buying in these markets now, my answer is no. Also re your question on Sydney yield, this can all be found online, or in the back pages of a property mag.

 

@Nish, have you been looking at suburbs in the Campbelltown area?

 

If you are looking for yields, Western Sydney is the "best" you will get. As others have stated granny flats or dual occupier will help yields.

We have a few clients buying but they are really long term plays looking for future development and subdividing.

I suggest looking at regional NSW, Adelaide or Brisbane if yield/cash flow is the main criteria.

 

Hey @Loverenting , not really but I have heard that side is getting popular with investors now...will have a look...Thanks!!

 

Thanks @Tony Fleming ...cashflow is not the main goal, just was thinking of looking at any opportunity of buying in Sydney along with other markets as in long term, Sydney is bound to grow....but can not sacrifice my servicability for that. Looking at the returns now in all the areas, would may be give it a miss as of now untill next boom cycle in Sydney....