BRW Sept-08 - High Yield Areas

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Pete_d

Thought this might be of interest to some

From an article in the BRW on Sept 4-10 2008 that talks about rising rental yields and falling interest rates shows some real opportunities around Australia for property investing. List of high yielding locations mentioned in the article.


Victoria
Houses
Suburb - Median Price - Gross Yield
Hepburn Springs 277,500 13.1%
Melbourne 295,000 10.6%
Aireys Inlet 497,500 9.9%
Hazelwood North 239,000 9.2%
Ouyen 90,000 9.2%
Flinders 710,000 9.2%

Units
Dinner Plains 110,000 11.8%
North Shore 158,000 8.2%
Irymple 157,500 7.6%
Hallam 239,500 6.9%
Seddon 217,000 6.5%
Melbourne 357,500 6.4%

New South Wales
Houses
Berrara 370,000 11.9%
Lockhart 100,000 7.8%
Cobar 190,000 7.7%
Hay 109,750 7.3%
Werris Creek 113,500 7.3%
Garden Suburb 307,000 7.2%

Units
Rosehill 265,000 10.3%
The Rocks 680,000 8.4%
Gunnedah 161,000 7.4%
Lakemba 178,000 7.3%
Elermore Vale 194,000 7.2%
Fairfield 180,000 7.2%
North Albury 173,500 7.2%

QUEENSLAND
Houses
Theodore 140,000 10.4%
Collinsville 215,000 9.7%
Dysart 330,000 9.5%
Moranbah 350,000 8.9%
Longreach 185,000 8.6%

Units
Beachmore 119,000 12.7%
Jacobs Well 640,000 12.2%
Coral Cove 158,000 11.8%
Sippy Downs 205,000 10.0%
Minyama 284,000 8.7%
 
South Australia
Houses
Port Vincent - 294,300 - 13.6%
Cummins - 147,500 - 7.6%
Gladstone - 117,000 - 6.8%
Peterborough - 92,750 - 6.7%
Port Pirie West - 125,000 - 6.7%

Units
Whyalla - 159,500 - 7.7%
Renmark - 110,000 - 7.1%
Evanston - 128,000 - 6.9%
Robe - 89,000 - 6.4%

Western Australia
House
Dampier - 835,000 - 10.6%
Hazelmere - 505,000 - 10.3%
South Hedland - 480,000 - 9.2%
Kambalda East - 182,500 - 7.7%
Kambalda West - 239,500 - 7.2%

Units
Stirling - 429,000 - 7.9%
Kalgoorlie - 272,500 - 6.7%
Boulder - 250,000 - 5.6%
Glendalough - 260,000 - 5.6%
 
Just a warning - Peterborough may have cheap housing (and low rents) but the quality of the houses are dismal, chatting to the local rental house maintainence guy he had about 20 broken windows in Peterborough to fix (and a maintainence list an arm and a leg long for the rentals in the town) and he was busy tarting up his house to sell and ship off to a better area - lots of locals are cashing out and leaving because of the housing boom, leaving the town in the hands of interstate investors. Peterborough has THE highest ratio of welfare to not welfare in the state, has a declining population, no jobs to speak of outside the slaughterhouse, oodles of vacant houses, idle land and empty shops and a major drug, teenage pregnancy and vandalism problem. They released a report last year that pointed all this out, I think it was called 'living on the edge', and Peterborough made the news for all the wrong reasons.

But for the specufestors, yes, it has had ridiculous capital gains. A few years ago houses there were well under $60,000, now most of them are over $100,000. In that time, rents haven't budged, the population has declined, the average income is still barely over $200 a week and more businesses have closed.

The other SA one I know reasonably well is Gladstone, which is growing and doing a lot better and for whatever reason has the lion's share of rentals in this region (probably all the people who sell and leave Peterborough are moving there). The explosive factory there has already exploded recently so that takes down the odds of it happening again ;) I'd quite like to get an IP there, actually.
 
Pete_d:
Thought this might be of interest to some

From an article in the BRW on Sept 4-10 2008 that talks about rising rental yields and falling interest rates shows some real opportunities around Australia for property investing. List of high yielding locations mentioned in the article.


Victoria

Houses

Suburb - Median Price - Gross Yield

Hepburn Springs.. 277,500 ...13.1%---209% median growth 1997-2008
Melbourne.......... 295,000.. 10.6%----only have suburbs
Aireys Inlet ........497,500 ...9.9%----257%
Hazelwood North..239,000.. .9.2%----129%
Ouyen ..............90,000 .....9.2%-----91%
Flinders ............710,000.. ..9.2%-----282%

Units.. (NB my growth stats are based on houses-be aware)

Dinner Plains .....110,000... 11.8%-------103%
North Shore...... 158,000 ...8.2%--------249%
Irymple ............157,500 ....7.6%-------153%
Hallam .............239,500 ....6.9%-------140%
Seddon ...........217,000 .....6.5%-------207%
Melbourne ........357,500 .....6.4%------again, only got suburbs breakdown
Click to expand...

....and Pete, for a bit of fun would it be okay to add in the median price growth (or fall), for the decade 1997-2008, as per Heraldsun article, July 2008, using Victorian Valuer-General statistics. Just to have alooksee altogether, not suggesting anything from these figures, and keeping in mind probably different sources of the the median growth figures ...
 
...oh and as compared to the decade median growth 1994-2005 as per another Heraldsun article, (September 18th 2005), stats courtesy of Vic Valuer-General office.

Victoria

Houses

Suburb - Median Price - Gross Yield

Hepburn Springs.. 277,500 ...13.1%---94-04--137%...209% median growth 1997-2008
Melbourne.......... 295,000.. 10.6%----94-04 n/a.....only have suburbs
Aireys Inlet ........497,500 ...9.9%-----94-04-214%..97-07--257%
Hazelwood North..239,000.. .9.2%-----94-04-n/a.....97-07-129%
Ouyen ..............90,000 .....9.2%-----94-04-73%....97-07-91%
Flinders ............710,000.. ..9.2%-----94-04-189%..97-07-282%

Units.. (NB my growth stats are based on houses-be aware)

Dinner Plains .....110,000... 11.8%-------103%......n/a
North Shore...... 158,000 ...8.2%--------249%......n/a
Irymple ............157,500 ....7.6%-------153%.......n/a
Hallam .............239,500 ....6.9%-------140%.......120%
Seddon ...........217,000 .....6.5%-------207%.......218% (less then 10 sales)
Melbourne ........357,500 .....6.4%------again, only got suburbs breakdown
Click to expand...
 
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