A western Sydney suburb within 30 kilometres of the CBD returned the highest gross rental yields in Sydney in the past year.
According to an investment report by property analysts RP Data, the suburb of Fairfield, in the council area of the same name, returned a gross annual yield of 6.5 per cent to top a list of Sydney’s Top 50 Investment Suburbs.
RP Data joined with loans.com.au to release the Autumn Investors Guide to Australia, which identified 582 suburbs across Australia with gross yields at 5.5 per cent or more.
The yields were determined by annualising advertised rents and dividing the figure by median property values.
In Sydney, units in Warwick Farm, in the council area of Liverpool and units in Auburn returned 6.4 per cent in gross rental yield. Houses in Blacktown, also in western Sydney, held four places in the top 10 of the list of top investment properties with yields of 6.2 and 6.3 per cent.
Loans.com.au managing director Marie Mortimer said rental yield was one of the most important categories for investors because it represented the income earned from the property.
“The data shows there are houses in Sydney with median values under $300,000 that are delivering good returns for investors,” Ms Mortimer said.