With a third of investors renting while investing, property managers would do well to know which suburbs offer the best returns. Here’s each state and territory’s best suburbs to rentvest into.
Financial comparison website Mozo has detailed the top seven suburbs to invest into while renting, using rental yields, property price movements, vacancy rates and housing as key metrics.
According to Mozo, the top seven suburbs are:
|Suburb||Median house price*||Yield||Price movement in year to July 2017||Vacancy rate||House supply from 12 months prior|
|Madeley, WA||$580,000||4%||Down 7.5%||1.1%||Down 38.7%|
|Tewatin, QLD||$517,000||4.7%||Up 10%||1.2%||Down 31%|
|Scullin, ACT||$540,000||4.3%||Up 10.4%||0.7%||Down 26.7%|
|Liverpool, NSW||$448,000||4.3%||Up 4.2%||3.7%||Up 48.2%|
|Brooklyn Park, SA||$504,000||3.6%||Up 2.8%||1.2%||Steady|
|Trevallyn, TAS||$324,000||5.2%||Up 4.4%||1%||Down 29.2%|
|Sunbury, VIC||$418,000||4.4%||Up 9.9%||0.9%||Down 46.9%|
* Liverpool is the exception, as median unit prices are used.
A breakdown of each of the suburbs by Mozo are as follows:
Madeley, Western Australia
Situated 20 kilometres north of Perth’s CBD, Madeley was Mozo’s best pick for Western Australia.
Despite a value drop of 7.5 per cent, low vacancy rates indicate future property value growth. The area is also located close to amenities, Swan Valley and is 10 minutes away from a number of beaches.
Supported by workers in Noosa and booming local and international tourism, along with a drop in both vacancy rates and housing stock, Tewatin has been branded by Mozo as located in a prime location while still remaining affordable.
Scullin, Australian Capital Territory
Positioned 15 minutes away from central Canberra and near Belconnen, Scullin has access to public transport and amenities as well as being 10 minutes away from the University of Canberra.
Due to the high proportion of government employees working in Canberra, there is a high necessity for housing, and as such, Mozo said that the median house price of $540,000 means this area has a high value for money.
Liverpool, New South Wales
The level of affordable units in NSW means that the state is the only suburb on the list to focus on units rather than houses.
Liverpool, located 40 kilometres away from Sydney’s CBD, has public transport and the M5 as transport options.
Looking to the long term, Mozo predicts a rise in property prices due to being close to Bagerys Creek, the site for Sydney’s second airport due to be completed in 2026, and the resulting job opportunities it will create.
In addition, the proposal of a new marina and the rejuvenation of Georges River by Liverpool council could also have an impact in the future.
Brooklyn Park, South Australia
Brooklyn Park is surrounded by a number of beaches on one side, the Adelaide CBD on the other, as well as Adelaide Airport, Harbour Town Shopping Centre and Torens Linear Park.
Mozo points out that the suburb is already good value for money, and is set to experience a price growth increase in the future.
In comparison, nearby suburb Henley Beach South has a median house price of $785,000.
Located within walking distance to schools and shops, three kilometres away from Launceston, and is near Cataract Gorge, Trevallyn provides what Mozo describes in a statement as “picturesque living”.
Prices are predicted to go up in the future, as it is located near Invermay, the future site of the relocation of the University of Tasmania, which will push rental demand up higher, especially from students.
With a fall in vacancy rates and housing stock, while first home buyer interest is high in the Melbourne market, Sunbury is predicted to experience a price rise within the next year.
The suburb is 40 kilometres away from Melbourne’s CBD and a 40-minute drive to the inner city in off-peak times, which Mozo claims is relatively close to the CBD for $400,000.