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:
- Set your financial goals
- Understand the ‘Supply and Demand’ for an area
- 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
The experts at Bricks+Agent did some research and calculations to compile a list of some of the most affordable areas in Australia promising growth potential.
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%).
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.
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.
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.
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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