Property Market Information: Best yield in town

By the resi financial blog team, 27 January 2015

Property Market Information: Best yield in town

There are two main investment goals out there, long term capital gain and great rental yield to generate cash flow. If you're looking for in properties in the second category, the latest release from RP Data might interest you.

The report reveals the 10 highest yielding suburbs for units in Australia, and the results are a great tool for investors looking to boost the income-earning potential of their portfolio.

Unsurprisingly the top spot goes to a suburb in Western Australia - South Headland. With an average rental yield of 12.9 per cent, this city exemplifies the kind of gains that can be had in areas with high population growth. According to a December 18 release by the Housing Industry Association (HIA), Western Australia is the nation's fastest growing state.

Queensland, the next highest in population growth according to the HIA, had four suburbs in the top ten. Woree yielded 8.7 per cent and came in fifth in the list. Chinchilla, Manunda and Edge Hill took places seven-through-nine with yields of 8.6, 8.5 and 8.4 per cent respectively.

New South Wales surprisingly had two entries in RP Data's report. Iluka in third place with 9 per cent, and Grafton, which came in sixth with 8.6 per cent.

Other suburbs to feature on the list included; Bairnsdale in Victoria, second place with 9.6 per cent, Whyalla Stuart in SA, fourth with 8.8 per cent and Newstead in Tasmania, lucky last with 8.4 per cent.

While many of these suburbs won't present opportunities for those looking for investments with large, long-term increases in value, what they do offer is a very tidy income boost for those looking to increase the monthly earnings of their investments.

If you're looking to take advantage of high yield properties to build your own passive investment income, talk to a resi loan specialist today, They'll be able to help you structure an investment home loan specifically suited to your needs.

Categories: Property Investment