Where are the highest rental returns in Australia right now?

Where are the highest rental returns in Australia right now?

 

For a traditional property - look to new master planned communities, in future growth corridors; that are selling land for new houses in the first stage. Just one example would be Yarrabilba in Logan Shire. It is a PDA site, a Lend Lease development, providing 14,000 dwellings to house 52,000 people. Houses are renting for 5%, and land prices moving around 8-10% per quarter. There will always be a price rise after 4 quarters of strong sales volumes in any market, this is evident in this location over the last year. To drill down to a specific asset that would provide a higher rental return, look at 4 bedroom townhouses where the average price is $380,000 with rents north off 410-430pw.

 

Level 59 of Governor Phillip Towers isn't too bad.

 

I don't know. Try Broken Hill. Are you looking for an ip purely based on yield?

 

Potentially. I'm just curious as to where the highest yield is at the moment after reading another Steve McKnight book this weekend... Haha. Cheers, I'll check out Broken Hill.

 

Beware the yield trap

 

Albury has some solid returns at the moment. As @DT briefly mentioned yield isn't the only thing to consider especially if planning to build a solid and strong portfolio. Capital growth and yield are what will get you well ahead of the average investor.

 

Thanks @Tony Fleming ill have a look at Albury too. Can anyone share some insight into their experience with investing in Broken Hill?It's been on the decline for a few years now. I understand mining has tanked but could BH be bottoming out and due for a small recovery in the near future?

 

Karratha is pretty good at the moment with a lowering vacancy rate to 3.9% from memory

 

Most banks probably wouldn't lend for BH. I'd rather just pay the extra 50k or 60k and get a 2 bed unit in Albury or a semi in Elizabeth.

 

You need to reverse engineer this. Think of the place where you can find the worst bogans with the smallest population. That place will have the best yield!

 

I have seen over 10% gross in Adelaide. Can't remember if it was Davoren Park or Elizabeth North? You can get high gross yields (on paper) but can be a risky strategy.

 

You can get around 6% in Canberra if you buy well (a house, don't touch apartments). High employment and rental demand too.

 

Elizabeth SA. I've got a couple getting 10%

 

Playford and Salisbury LGA's are two of the highest yielding council areas in Australia