Top 50 Yeilding suburbs in Australia

I subscribed to some free reports and this is their take on top yielding suburbs. I wonder if anyone is actually buying in these places and can confirm the yield reported in general.

 

No surprise they are all very low priced properties, majority units.
When considering strata fees, high PM rates, high relative maintenance costs, and higher vacancy rates in general, does the marginally higher yield % count for anything?

 

Very few metro area ones in the list. Similar to Ace I avoid units due to having to pay strata fees.

Myself and others have been able to achieve yields greater than those on the PDF through negotiating well at the purchase and/or adding value.

 

Equally important is what sort of properties fetch the yields claimed.

Locations that make 'top yield lists' are almost always one of these:

* Mining towns (which can be volatile)
* Small farming towns (often with declining population and limited services)
* CBD/certain inner suburbs (dominated by shoebox/student/serviced apartments)
* Low income outer suburbs of capital cities and major regional centres

All have risks, with the last possibly the least risky with careful property manager selection. In some cases the high yield can be illusory. Eg rents may have been inflated due to mining boom conditions. Property managers & tradies can be expensive in remote towns. Or apartment buildings may have very high body corporate fees. Or you may need to factor in higher vacancy risks or difficulties getting good tenants. Also some places have very few of certain types of property (eg 1br units in small country towns) so numbers will be skewed.

Your job is to find out which one applies for each town (as one almost certainly will). A town that doesn't have any of these risk factors may be a rare good investment, but it's unlikely to be amongst the highest yielders on the list.

 

Yeah I agree mate. This is so important, as you have highlighted Dave.

 

Thanks. I also think sticking to metropolitan areas is important too so that there's hope of capital growth whereas the PDF was mostly country/rural areas.

 

Yup. Actually.. probably one of the first things I have a look at is how many KM it is from the CBD. I think different states should be judged differently. Like for Sydney.. I think 45+km is no problem, but then when you get to Brisbane I'd definitely shorten it to perhaps 15km or so. Adelaide would you say up to...10km ??

 

Really depends on what you're trying to do. Most of ours are 20-30km in both north and south directions.

 

'normal' ips or development sites?

 

Both

 

Interesting, 12 of the top 23 yielding are units or houses in Cairns. For units I think these figures would be accurate for gross yield, before BC fees are considered.

 

I'm little surprised 20-30km from the cbd in Adelaide but I don't know the market like you. cool.

 

Yep, BC and other outgoings are huge in Cairns

 

That would discount most of the Logan LGA

 

Yep but does Logan still offer good short-medium term CG prospects...?

 

I think its probably too late to get in now and be assured of making good cg in the short term. Long term its one of the quickest growing regions in Australia so its got lots of potential. Probably better places to buy in Greater Brissy presently though.

 

Yeah I was thinking along the same lines mate.. may have bolted already and perhaps some better options in Brissy.

 

Hi

For those interested in the North Queensland market, recent changes to insurance and Body Corps are likely to make a big difference to the cash flow equation: https://propertychat.com.au/community/threads/cairns.3045/page-3#post-66470.

Cheers

Jen

 

note that those mags have a top highest growth or yield or drop type articles almost every month,

most are skewed by odd or low volume results,

high yield suburbs are always tiny where the yields are so high because its so volatile,

as for sell prices, selling in theory and selling in reality are two totally different things,

as a result, I completely ignore all of them ,as most of the suburbs Ive never heard of....and I know suburbs!