Join Australia's most dynamic and respected property investment community

Top 50 Yeilding suburbs in Australia

Discussion in 'Where to Buy' started by Leo2413, 6th Sep, 2015.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,754
    Location:
    Sydney
    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.
     

    Attached Files:

  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,516
    Location:
    Sydney
    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?
     
    Last edited: 6th Sep, 2015
    York and Leo2413 like this.
  3. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,584
    Location:
    Adelaide, SA
    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.
     
    York and Leo2413 like this.
  4. Spiderman

    Spiderman Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    119
    Location:
    Vic
    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.
     
    Leo2413 likes this.
  5. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,754
    Location:
    Sydney
    Yeah I agree mate. This is so important, as you have highlighted Dave.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,584
    Location:
    Adelaide, SA
    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.
     
    Catalyst and Leo2413 like this.
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,754
    Location:
    Sydney
    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 ??
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,584
    Location:
    Adelaide, SA
    Really depends on what you're trying to do. Most of ours are 20-30km in both north and south directions.
     
  9. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,754
    Location:
    Sydney
    'normal' ips or development sites?
     
  10. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,584
    Location:
    Adelaide, SA
    Both :)
     
    Leo2413 likes this.
  11. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,123
    Location:
    FNQ
    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.
     
    Leo2413 likes this.
  12. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,754
    Location:
    Sydney
    I'm little surprised 20-30km from the cbd in Adelaide but I don't know the market like you. cool.
     
  13. Daniel007

    Daniel007 Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    201
    Location:
    Sydney
    Yep, BC and other outgoings are huge in Cairns
     
  14. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,123
    Location:
    FNQ
    That would discount most of the Logan LGA
     
  15. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,754
    Location:
    Sydney
    Yep but does Logan still offer good short-medium term CG prospects...?
     
  16. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,123
    Location:
    FNQ
    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.
     
    Tekoz and Leo2413 like this.
  17. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,754
    Location:
    Sydney
    Yeah I was thinking along the same lines mate.. may have bolted already and perhaps some better options in Brissy.
     
    Tekoz likes this.
  18. JenJen

    JenJen Well-Known Member Business Member

    Joined:
    20th Jun, 2015
    Posts:
    91
    Location:
    Cairns & Townsville, North Queensland
    Tekoz likes this.
  19. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,394
    Location:
    Melbourne
    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!