Investors Seeking Yield

I wanted to share with you a recent report from Australia’s leading property research analyst Terry Ryder at Hotspotting.

The ‘Pulse' report reveals locations that have above 5% rental yield and potential for long term capital growth. The criteria is based on Local Government Areas that feature strong local economies, good infrastructure, affordable housing options ($600,000 and under) and above-average rental yields. 

A common myth in real estate is that you can't have both high rental yield and strong capital growth. The reality is, choosing your location wisely can achieve both.

The following are the three top Qld locations that have been highlighted as having potential to achieve both. Some will come as a surprise.

Dalby, the vacancy rate in Dalby is just 0.1%, rents have risen 24% in the past 12 months.

Median rental yield is increasing from 6.6% to 7.2% in the past three months. 

The median house price has recorded an annual increase of 15% to $350,000. 

Bowen Hills (units), the vacancy rate for units is 1.2%. Over the past 12 months, the median unit rent has increased by 15%.

Median rental yield has risen from 6.2% to 6.6% in the past three months. 

During this quarter, the median unit price has grown by 7.1%, from $425,000 to $455,000.

Woodridge (units), the vacancy rate for units is 0.6%. The median rental yield remains high at 7.1%. 

Median unit price has increased 24% annually to $298,000.

Mindset is a big part of investing and to be honest knowing some of these locations I would not of put my own money there until I read the report.

Investing in any asset is about one thing,  number going up. With the above numbers at each of these locations it’s hard to ignore the returns and minimal impact on cashflow.

Image - Street art by Vinnie, Toulouse, France