With historically low mortgage interest rates, a positive cash flow investment isn’t all that hard to come by in the current market. But finding a property that generates high yields, attracts strong demand from tenants and is located in a central area where vacancy rates are tight and therefore vacancy risks are low – well, that’s a different proposition altogether.
That’s why in this issue our researchers dug in to help you with the research. Working with the team at Real Estate Investar, we’ve unearthed some of Australia’s highest-yielding property investment opportunities in 80 suburbs in cities and towns across the country.
These suburbs offer a unique high-yield, strong-demand, low-vacancy combo – and they’re priced just right for those who are property shopping on a tighter budget.
If you’re on the hunt for your next investment property, the locations listed on the following pages may give you the inspiration you need to take action. Remember to do your own due diligence to ensure the location stacks up against your individual list of investment criteria and suits your property investing goals.
Is a high-yield property right for you?
Not sure if a high-yield property investment is right for you? The truth is, a high cash flow investment doesn’t suit everyone; if you earn a high income, for instance, then adding another income stream could result in your paying more tax. In this instance, a property with strong capital growth prospects may be more suitable. Ask yourself these questions to work out whether a high yield is actually your main priority:
- Do you you already pay a high amount of tax? If so, perhaps a negative gearing strategy would be more suitable.
- Do you want to work less and live off rental income? A high-yield property could help you achieve this goal.
- Can you afford to maintain the property through vacancy periods? High-yield properties are often in regional locations, where vacancy risks can be higher.
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The full article highlighting all 80 high-yield suburbs was published in the April 2020 edition of Your Investment Property magazine.
