Invest
Where are Australia’s ‘hottest’ rentvestor suburbs?
Rentvesting popularity is growing and now accounts for more than 30 per cent of all property investments in Australia, recent Mozo figures show, so where are the best spots?
Where are Australia’s ‘hottest’ rentvestor suburbs?
Rentvesting popularity is growing and now accounts for more than 30 per cent of all property investments in Australia, recent Mozo figures show, so where are the best spots?
According to comparison site, Mozo, the practice of investors renting in an area for lifestyle needs while owning an investment property somewhere else now accounts for about $200 billion of loans and more than 30 per cent of all property investments in Australia.
At the same time, research from a non-bank lender reveals that 74 per cent of people consider rentvesting to be a “good strategy for those struggling to get into the housing market”.
It’s not just first home buyers that should be considering the strategy, the managing director of Propertyology, Simon Pressley has added. Older Australians and Baby Boomers should consider the strategy as a way to enjoy a comfortable retirement once they no longer need a large family home.
Mozo property expert Steve Jovcevski said the strategy’s appeal came down to the fact that the Australian housing market has “undergone a period of dramatic change”.
“Young people are finding it increasingly unattainable to purchase their own home in the city they live in,” he explained.
“Ease of transportation, minimal commute, greater job opportunities and stellar education, healthcare and culture are just a few reasons people are having their cake and eating it too [by rentvesting]. They can enjoy the benefits of a big city while making savvy property investments that won’t break the bank.”
The Mozo analysis identified the seven Australian suburbs with the best conditions for rentvestors. To make the cut, the suburbs had to have a median house price below $600,000 and appealing vacancy rates, supply and property price movement.
Mr Jovcevski explained: “When looking for an investment property, there are a few key factors to assess. Vacancy rates will provide you with an idea of rental demand. The lower, the better.
“Be sure to crunch the numbers on your mortgage versus the rental returns in the suburb you are looking to invest in, as ideally, the rent will cover the majority of the mortgage.”
1. Trevallyn, Tasmania
This suburb has a median house price of $324,000 with a median required deposit of $64,800 and monthly repayments of $1,370.
Mozo said that as Trevallyn has a vacancy rate of just 1 per cent and is located 3 kilometres from Launceston, the suburb was the top Tasmanian pick.
Further, the suburb could potentially experience high rental demand from students in the future as it is close to the University of Tasmania’s relocation destination.
2. Brooklyn Park, South Australia
As Brooklyn Park is close to the beach, CBD and airport, Mozo argued that its value will rise in the future, especially given its current low vacancy rate (1.2 per cent) and recent growth in price in suburbs nearby. Brooklyn Park has a median house price of $504,000, deposit of $100,800 and repayments of $2,133.
3. Tewantin, Queensland
The median house price in Tewantin is $517,000 and the deposit required averages at $103,400 with monthly repayments of $2,188. According to Mozo, as Tewantin is 10 minutes from the “tourist hotspot” of Noosa, it’s considered a “prime investment location in Queensland”.
This is compounded by its recent 31 per cent drop in housing stock and fall in vacancy rates to 1.2 per cent.
4. Scullin, ACT
Close to the CBD and university and with a vacancy rate of just 0.7 per cent, Scullin received top marks in the ACT from Mozo. With a median house price of $540,000, deposit of $108,000 and repayments of $2,285, Mozo argued Scullin offers “high value for money”.
5. Sunbury, Victoria
With a median house price of $418,000, deposit of $83,600 and repayments of $1,769, Sunbury took out the top spot for Melbourne. Located 40 kilometres from the CBD and 20 minutes from the airport, Mozo argued that the 47 per cent drop in housing supply and its appeal to first home buyers will see prices continue to rise.
6. Madeley, Western Australia
This suburb 20 kilometres north of Perth’s CBD has the highest median house price ($580,000) but as it’s close to the beach and has a vacancy rate of 1.1 per cent, Mozo considered it to present the best option for investors looking to purchase in Western Australia.
The median deposit required is $116,000 with median monthly repayments of $2,454.
7. Liverpool, NSW
With the M5, public transport and the future Badgerys Creek airport in close proximity, Liverpool is considered the NSW destination of choice for rentvestors by Mozo. The affordability of units in this suburb was noted by Mozo to be the particular drawcard.
The median unit price in Liverpool was $448,000 with the average deposit sitting at $89,600 and repayments at $1,896.
Property
How to buy house and land packages in Australia
If you’re planning to buy a house and land package, it can be tricky if you’re not familiar with the ins and outs of such deals. Here’s our guide to make this purchase easier for you. ...Read more
Property
How first home buyers can take advantage of the budget
While the 2021 budget included a number of measures relevant to property investors, an expert has questioned whether any of them could yield an impact on rising buyer imbalances and reduced liveabilit...Read more
Property
First home buyers at the frontline of Frydenberg’s charm offensive
There are few surprises to be found in this year’s federal budget, with Australian property investors and first home buyers set to benefit from new and expanded measures. ...Read more
Property
May could be the beginning of the end for housing pricing boom
Experts have suggested that recent growth in prices could mark the peak of the pandemic bounceback for the housing market. ...Read more
Property
Treasurer announces home loan assistance packages for single parents
The federal government has announced a new scheme targeted at helping single parents with limited deposits into the housing market. ...Read more
Property
Australian housing market now valued at $8 trillion
The Australian dwelling market has reached a new record high, with the total value of residential real estate breaking the $8 trillion mark for the first time. ...Read more
Property
A generation of Aussies could be locked out of the housing market as prices boom
A booming property market is set to see a generation of younger Australians priced out of the market, a shadow assistant minister has said, challenging the narrative that younger people are failing...Read more
Property
Is the property market reaching its summit?
While home values continued to rise across the country in April, current trends are pointing to the possibility that the property market has peaked, a new report has revealed. ...Read more
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Property
How to buy house and land packages in Australia
If you’re planning to buy a house and land package, it can be tricky if you’re not familiar with the ins and outs of such deals. Here’s our guide to make this purchase easier for you. ...Read more
Property
How first home buyers can take advantage of the budget
While the 2021 budget included a number of measures relevant to property investors, an expert has questioned whether any of them could yield an impact on rising buyer imbalances and reduced liveabilit...Read more
Property
First home buyers at the frontline of Frydenberg’s charm offensive
There are few surprises to be found in this year’s federal budget, with Australian property investors and first home buyers set to benefit from new and expanded measures. ...Read more
Property
May could be the beginning of the end for housing pricing boom
Experts have suggested that recent growth in prices could mark the peak of the pandemic bounceback for the housing market. ...Read more
Property
Treasurer announces home loan assistance packages for single parents
The federal government has announced a new scheme targeted at helping single parents with limited deposits into the housing market. ...Read more
Property
Australian housing market now valued at $8 trillion
The Australian dwelling market has reached a new record high, with the total value of residential real estate breaking the $8 trillion mark for the first time. ...Read more
Property
A generation of Aussies could be locked out of the housing market as prices boom
A booming property market is set to see a generation of younger Australians priced out of the market, a shadow assistant minister has said, challenging the narrative that younger people are failing...Read more
Property
Is the property market reaching its summit?
While home values continued to rise across the country in April, current trends are pointing to the possibility that the property market has peaked, a new report has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
