Australia’s top 10 suburbs with the highest rental yield.

Considering purchasing a house for an investment property and not sure where to look? Below are Australia’s top 10 suburbs with the average highest rental yield for houses (note these figures do not include units).

What is rental yield?

Before we go into details about the suburbs, it’s important to understand what rental yield is and how it is calculated. Rental yield is the annual income received in rent over the value of the property, calculated as a percentage. Gross rental yield = (Annual rental income / Property value) x 100. So multiply your weekly rental income by 52 to calculate annual rental income, divide that figure by the property value and then multiply by 100. For example, a property purchased for $320,000 with a weekly rent of $460 would have a gross rental yield of 7.48%.

Suburbs with the highest rental yield

If you would like more detailed information on any of the suburbs below or any other suburbs in Australia, you can order a free full suburb report here.

1) Zeehan – Tasmania

Average Monthly Rental Yield: 8.9%
The size of Zeehan is approximately 91 square kilometres. The population of Zeehan in 2006 was 845 people. By 2011 the population was 728 showing a population decline of 13% in the area during that time. Households in Zeehan are primarily couples with children and are likely to be repaying between $300 – $450 per month on mortgage repayments. Currently the median sales price of houses in the area is 35,000.

2) Broken Hill – New South Wales

Average Monthly Rental Yield: 8.7%
The size of Broken Hill is approximately 7165 square kilometres. The population of Broken Hill in 2006 was 19,359 people. By 2011 the population was 18,774 showing a population decline of 3% in the area during that time. The predominant age group in Broken Hill is 0-14 years. Households in Broken Hill are primarily couples with children and are likely to be repaying between $1000 – $1400 per month on mortgage repayments. In 2006, 76.9% of the homes in Broken Hill were owner-occupied compared with 74.6% in 2011. Currently the median sales price of houses in the area is 155,000.

3) Coonamble – NSW

Average Monthly Rental Yield: 8.1%
The size of Coonamble is approximately 1513 square kilometres. The population of Coonamble in 2006 was 2,720 people. By 2011 the population was 3,002 showing a population growth of 10% in the area during that time. The predominant age group in Coonamble is 0-14 years. Households in Coonamble are primarily couples with children and are likely to be repaying between $1000 – $1400 per month on mortgage repayments. In 2006, 63.1% of the homes in Coonamble were owner-occupied compared with 64.7% in 2011. Currently the median sales price of houses in the area is 140,000.

4) Queenstown – Tasmania

Average Monthly Rental Yield: 8.0%
The size of Queenstown is approximately 132 square kilometres. The population of Queenstown in 2006 was 2,112 people. By 2011 the population was 1,976 showing a population decline of 6% in the area during that time. The predominant age group in Queenstown is 0-14 years. Households in Queenstown are primarily couples with children and are likely to be repaying between $600 – $800 per month on mortgage repayments. In general, people in Queenstown work in a non-specific occupation. In 2006, 71.4% of the homes in Queenstown were owner-occupied compared with 70.4% in 2011. Currently the median sales price of houses in the area is 69,000.

5) Kambalda East – WA

Average Monthly Rental Yield: 7.8%
The population of Kambalda East in 2011 was 851 people. The predominant age group in Kambalda East is 0-14 years. Households in Kambalda East are primarily couples with children and are likely to be repaying between $1000 – $1400 per month on mortgage repayments. In general, people in Kambalda East work in a non-specific occupation. In 2011, 56.6% of the homes in Kambalda East were owner-occupied. Currently the median sales price of houses in the area is 66,500.

6) West Kempsey – NSW

Average Monthly Rental Yield: 7.7%
The size of West Kempsey is approximately 9 square kilometres. The population of West Kempsey in 2006 was 4,742 people. By 2011 the population was 4,792 showing a population growth of 1% in the area during that time. The predominant age group in West Kempsey is 0-14 years. Households in West Kempsey are primarily couples with children and are likely to be repaying between $1000 – $1400 per month on mortgage repayments. In general, people in West Kempsey work in a non-specific occupation. In 2006, 59.7% of the homes in West Kempsey were owner-occupied compared with 56.8% in 2011. Currently the median sales price of houses in the area is 185,000.

7) Bordertown – SA

Average Monthly Rental Yield: 7.7%
The size of Bordertown is approximately 180 square kilometres. The population of Bordertown in 2006 was 2,580 people. By 2011 the population was 2,791 showing a population growth of 8% in the area during that time. The predominant age group in Bordertown is 0-14 years. Households in Bordertown are primarily couples with children and are likely to be repaying between $1000 – $1400 per month on mortgage repayments. In general, people in Bordertown work in a Labourer occupation. In 2006, 70.9% of the homes in Bordertown were owner-occupied compared with 69.5% in 2011. Currently the median sales price of houses in the area is 142,500.

8) Bridgewater – TAS

Average Monthly Rental Yield: 7.6%
The size of Bridgewater is approximately 18 square kilometres. The population of Bridgewater in 2006 was 3,945 people. By 2011 the population was 4,121 showing a population growth of 4% in the area during that time. The predominant age group in Bridgewater is 0-14 years. Households in Bridgewater are primarily couples with children and are likely to be repaying between $1000 – $1400 per month on mortgage repayments. In general, people in Bridgewater work in a non-specific occupation. In 2006, 45.4% of the homes in Bridgewater were owner-occupied compared with 47.1% in 2011. Currently the median sales price of houses in the area is 163,500.

9) Port Pirie West – SA

Average Monthly Rental Yield: 7.5%
The size of Port Pirie West is approximately 31 square kilometres. The population of Port Pirie West in 2006 was 4,057 people. By 2011 the population was 2,775 showing a population decline of 31% in the area during that time. The predominant age group in Port Pirie West is 0-14 years. Households in Port Pirie West are primarily couples with children and are likely to be repaying between $800 – $1000 per month on mortgage repayments. In general, people in Port Pirie West work in a non-specific occupation. In 2006, 61.9% of the homes in Port Pirie West were owner-occupied compared with 55.7% in 2011. Currently the median sales price of houses in the area is 131,250.

10) Ravenswood, TAS

Average Monthly Rental Yield: 7.5%
The size of Ravenswood is approximately 10 square kilometres. The population of Ravenswood in 2006 was 4,154 people. By 2011 the population was 3,975 showing a population decline of 4% in the area during that time. The predominant age group in Ravenswood is 0-14 years. Households in Ravenswood are primarily couples with children and are likely to be repaying between $1000 – $1400 per month on mortgage repayments. In general, people in Ravenswood work in a non-specific occupation. In 2006, 47.3% of the homes in Ravenswood were owner-occupied compared with 47.1% in 2011. Currently the median sales price of houses in the area is 120,000.

Above statistics from Corelogic RP Data

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