Top 10 Highest Yielding Suburbs

[Jake Milne]

Excerpt from the top 200 list by APM and Realestateinvestar:

Rank, Suburb, State, Postcode,
Dwelling Type, Bedrooms, Median Listing Price, Weekly Median Rent, Rental Yield

1 WOREE QLD 4868
Unit Studio & 1 $50,000 $165 17.16%

2 NEWMAN WA 6753
House 4 $950,000 $3000 16.42%

3 PARAP NT 820
Unit Studio & 1 $146,000 $450 16.02%

4 ULTIMO NSW 2007
Unit Studio & 1 $185,000 $500 14.05%

5 NEWMAN WA 6753
Townhouse 2 $575,000 $1500 13.56%

6 BROADWAY NSW 2581
Unit Studio & 1 $185,000 $480 13.49%

7 SOUTH HEDLAND WA 6722
House 4 $990,000 $2350 12.34%

8 SOUTH HEDLAND WA 6722
House 5 $1,182,500 $2800 12.31%

9 MOLLYMOOK NSW 2539 House
$632,000 $1450 11.93%

10 NEWMAN WA 6753
Unit 2 $575,000 $1300 11.75%

ABOUT THIS REPORT
This report was produced using live on the market rental and sales listing data. We have maximised accuracy by only publishing those suburb results with high enough data sample sizes. This data is also calculated at both a dwelling type and bedroom number level. This increases it’s relevance for investors, but it also means it will vary from commonly published house and unit median yields that include all bedrooms as consolidated median yield results. This report is designed to illustrate potential opportunities, but you should always conduct additional due diligence to verify the sustainable rental income on any specific property and take into account factors such as vacancy rates and changes in rental income seasonally.

 

[strongy1986]

Had a look into this a few months ago

Mollymook is an anomaly and shouldn't be in the list. From memory yields were more like half what the report said

Woree (cairns), does anyone own here? I often wondered if the yield is so high purely because you can't get good long term tenants in the area due to holiday nature of cairns and long wet season

Jake what is your take on this list. I ask because investing in these places would be against your usual theories

 

[mini2]

4 ULTIMO NSW 2007
Unit Studio & 1 $185,000 $500 14.05%

I am guessing it's the usual Unilodge studio/1 bedder?

 

[Dave_R]

Mollymook is indeed an anomaly. The sheer majority of rentals in the suburb are holiday homes, which will be what is distorting the figures.

While demand has picked up over the years from tourists from Sydney and Canberra over the holiday periods, speaking from experience as I grew up in the area, the place can get pretty quiet during the rest of the year.

 

[TMNT]

4 ULTIMO NSW 2007
Unit Studio & 1 $185,000 $500 14.05%

you expect seasoned investors to give creddibility of a 1 bdr studio renting for $500 per week for $185k in a regional area!!!

 

[saiman]

you expect seasoned investors to give creddibility of a 1 bdr studio renting for $500 per week for $185k in a regional area!!!

Ultimo is regional?

you must be from the Eastern suburbs

 

[Jake Milne]

Jake what is your take on this list. I ask because investing in these places would be against your usual theories

You're right strongy in that there's not a combination of asset type and suburb together that I'd consider on this list.

The closest I come to considering a purchase based on this information is a 1 bed, bigger than 50sqm apartment in Ultimo, Sydney.

As always when investing it's important to have a plan and to know the whole picture. If anyone is considering purchasing for yield in these areas just make sure you do your research and that your choice meets the requirements of your strategy.

 

[Jake Milne]

I am guessing it's the usual Unilodge studio/1 bedder?

Most likely cheaper 35-45sqm studios that present little growth.

 

[Jake Milne]

you expect seasoned investors to give creddibility of a 1 bdr studio renting for $500 per week for $185k in a regional area!!!

I have no expectations of other investors with regards to this post. Simply publishing an excerpt of a private report for the benefit of other members.

If investors want more information I would recommend signing up to realestateinvestar as it is a powerful research tool.

 

[Peter 14.7]

Most likely cheaper 35-45sqm studios that present little growth.

I work in that area and sorry but no way you can buy real studio that is Ultimo for $185k. Could in 2007 but not now. Now they go for $300k plus.

What this is measuring is Unilodge style stuff. Only just opened one 4 blocks from my office. They Converted old office building into bedsit for students, Rent $330 to $440 a week including WI FI and electricity.

FYI, Peter 14.7

PS list is still good stuff just pointing out some local facts, Peter

 

[Jake Milne]

Good stuff, thanks for that Peter ....unilodges

 

[Peter 14.7]

Good stuff, thanks for that Peter ....unilodges

Yeah, their has been an explosion recently in Trendy Unilodge style stuff. Most, very funky like Iglu

http://iglu.com.au/rooms-rents/independent-student-living/

FYI Peter

 

[mattnz]

Ultimo / Broadway always appear on these data lists. The reason is that a huge number of units on the market for sale are at Unilodge, but the ones that show as for rent are all the larger standard units. Unilodge doesn't advertise them, they go direct to students.

So you have inferior stock for sale and superior listings for rent.

 

[chrispy]

Woree (Cairns) is not a holiday area, it is where some low income families live. I had a block of 4 flats there, which I totally renovated and put in airconditioning etc., but could only attract low income families, usually single parents.

The ROI was good but there were periods when it took some time to let.

I also have had apartments in Parap, (Darwin) The rents were high but the leases were usually short term and the damage and repairs were high. I got out of the two I had there because I could not find a decent PM to manage the properties.

Above is my experience, others may have different views.

Chris

 

[Jake Milne]

Testament that sometimes the cheapest aren't actually that?

 

[Craiginqatar]

Woree might be top in this list on rental yields, but it would also be high on expenses. Cairns area BC costs are outrageous. Expenses without including mortgages are up to 60-70% of the rental return in some cases or higher. Just got numbers on a $65,000 place, $180 a week. BC was +$6000 a year & rates $2000.

Expensive stuff.

 

[Jenko]

Yeah looked at a few units in cairns 6 to 8 months ago agents talked about high returns, they are until you take the expenses out.

 

[knightm]

sometimes its lies, damned lies and statistics.

I live 5 mins from mmook no way long term gets those returns, quoted figure is peak season holiday rental rate.

 

[jeffb5ltr]

Ultimo is regional?

you must be from the Eastern suburbs

Ha ha ha ha awesome

 

[MTR]

I have no expectations of other investors with regards to this post. Simply publishing an excerpt of a private report for the benefit of other members.

If investors want more information I would recommend signing up to realestateinvestar as it is a powerful research tool.

jake

Thanks for posting this, not familiar with these areas other than minimg towns in WA, which have high entry level $900k+, too much risk for me.

Great yields at moment in the Gold Coast area as it has been hammered and various pockets in SEQ , 9-10%, buy the right property I see it as low risk.

Cheers. MTR