Australia’s best places for investors chasing high rental returns have been revealed by CoreLogic – and they are all affordable for average-income earners.
Blackwater in central Queensland came first in CoreLogic’s top 100 list, followed by Broken Hill in the far west of New South Wales. Woree in Cairns came third, with our very tropical city in far north Queensland taking out three places in the top 10 – all for units.
Woree, a short drive south-west of central Cairns, delivered yields of 10.8 per cent as tenants paid a median rent of $260 a week. It has a median apartment price of $133,205, marking a 14.4 per cent increase during the past five years.
Nearby Manunda, a short walk west of the city centre, has rental yields of 9.5 per cent in a suburb with a median weekly rent of $250.
Queensland took out 42 spots on the top 100 list for yields, with Bungalow a stroll away from Manunda, came in at No. 8 on the list.
Rental yields represent the annual rent received by a landlord as a percentage of the purchase price. The higher the price, the lower the rental yield. Conversely, a cheaper property with tenants delivers higher rental yields. This means the landlord can pay off the investment loan more easily, without negatively gearing the property, or claiming rental losses as a tax break.
Great news for Cairns investment owners.
Australia’s top 10 places for investors chasing high yields:
- Blackwater, Central Queensland (houses)
- Broken Hill, Far West New South Wales (houses)
- Woree, Cairns (units)
- Manunda, Cairns (units)
- Katanning, Southern Western Australia (houses)
- Cobar, Central West NSW (houses)
- Bordertown, South Australia (houses)
- Bungalow, Cairns (units)
- Moranbah, Central Queensland (houses)
- Port Augusta, South Australia (houses)
Should you ever require assistance from a real estate perspective, please don’t hesitate to contact me.