So you’ve made the decision to buy a residential investment property and now you need to choose where to buy it. While ‘location, location, location’ rings in your ears, keep in mind that popularity doesn’t necessarily guarantee bang for your investment buck.
You might think inner city suburbs and holiday hotspots as sure things, and who wouldn’t want an investment property at your favourite long weekend location – think of all the weekends away!
But Finder.com.au, one of Australia’s biggest comparison websites, has revealed that the most popular holiday spots can actually be some of the worst places to invest based on rental yield, which is essentially the rent you get for your property as a percentage of its market value.
Finder.com.au’s top investment holiday hotspots
Despite being ranked as Australia’s most popular travel hotspot, Sydney’s high house prices saw it slide to 9th place with the second lowest yield of just 3.33%.
Units & Apartments
Despite being Australia’s 10th most popular travel spot and the 2nd most expensive median unit price, Darwin performed strongly with the second highest yield at 6.82%.
When buying an investment property just make sure your heart isn’t being carried away without your head because of a sexy location. The purpose of an investment property is to make you money, whether that’s through a good rental income or capital growth over time.
Have you recently bought an investment property? What did you base your decision on – location, rental yield, capital growth or something else?
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