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The Best Places To Buy A Rental Property In Australia

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Are you looking to invest in a rental property in Australia? Well if you are then chances are you’re constantly looking for properties promising the best outcome. However, the task isn’t exactly as easy as it seems. There are more than a few things that you need to keep in mind to make a well-informed decision.

Here is a brief set of things that you need to take care of to ensure you invest in the best area:

  1. Set your financial goals
  2. Understand the ‘Supply and Demand’ for an area
  3. Search for local indicators that might influence the price in future

Ideally, the places with high Property Gross Yield make up for the best choices.

Property Gross Yield = (Annual Rental Income/ Property Value) x 100

Our experts did some research and calculations to compile a list of some of the finest areas in Australia promising immense potential.

 

1. Hobart

Hobart is the capital city of Tasmania. Over 40% of the state population resides in Hobart. That amounts to a whopping 225,000 people. With a Property Gross Yield of 5.5%, Hobart ranks on the top of the list. The average house here costs $398,522. That's low in comparison to the rest of Australian states.

Some suburbs likely to return the most rental yield are Bridgewater (8.6%), Risdon Vale (8.5%) and Clarendon Vale (8.2%).

 

2. Darwin

Darwin makes it to the second spot on our list with a Property Gross Yield of 4.8%. The city is home to 78,804 people and represents 2/3 of the metropolitan population. The average cost of owning a home in the city is $565,000. However, it is likely to fetch you rent amounting to $466 every week.

Stuart Park, Fannie Bay, and Wulagi are some of the best suburbs to choose from.

 

3. Adelaide

One of the finest cities of the country, Adelaide comes in third on the list. With 4.6% one cannot go wrong with an investment in this city. Our research concluded with an average cost of owning a home here is $601,000. Expect a rental to pay anywhere between $300-$400 for a house that lies in the suburbs of Old Reynella, Morphettville and Ridgehaven.

 

4. Brisbane

At first glance Brisbane might not look like the brightest idea. The average cost of owning a home here is a whopping $730,000. However, that all matches up with the rent that can be anywhere from $400-$550. Carindale and Pullenvale are two of the most expensive suburbs here. The rent here exceeds the $800 mark.

 

5. Canberra


Concluding the list is Canberra with a Property Gross Yield of 4.4%. The average rent here can range from $500-$1000 for a three or four bedroom house. Expect to shed out close to $739,000 for owning a home here. The suburbs remain in high demand due to the transient population. 

These five areas make up for the best and most lucrative returns in Australian rental investments at the moment. The trick is to keep your eyes and ears open and learn if there is something ‘revolutionary’ happening in the area. For instance, the government announcing a hospital or a university is likely to increase the prices overnight. 

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Rafael Niesten

Written by Rafael Niesten

In his early 20s, Perth local Rafael Niesten, won a scholarship to study in Canada, with that came the opportunity to volunteer at a local radio station. That spawned his entrepreneurial streak, returning to Perth in 2001 he set up community radio Groove FM. More by luck than design, they became successful, too successful as they took a significant chunk of the Perth Market. This sent up the red flag with his commercial competitors who saw to it that he came before the Australian Broadcasting Authority and on technicalities such as the number of volunteers he was forced to move on. He received the citizen of the year award for Western Australia (youth) and was a finalist in the Australian of the year awards (Youth). Falling on his sword he turned to running small and large scale events, all the while buying, renovating and selling properties. Buying and selling land and renovated houses provided a grounding in the property industry. In 2006 he moved to Sydney lured by the offer of free rent for 10 months in a friend’s apartment. He founded a cloud based medical grade voice recognition company, followed by co founding the first true cloud application for private practice in the health sector. He successfully exited these ventures at the end of 2016 and began building Bricks+Agent.