The national “BEST RENTS” report from the statistical analytics firm Residex.
The report is 127 pages of residential property analysis that is prepared every quarter.
We particularly like the best rents report because it shows the suburbs or towns in each state that are currently generating a high rental yield. Have a look at this suburb above, Rosemeadow. Residex are reporting that a median house is worth $353,500. The rent on this house would be around $20,200 p.a..
If you were to borrow 100% of this property value you would be paying just $16,600 p.a. in interest (with our cheapest 3 year fixed rate – 4.69% p.a.). In other words, your rental income would exceed your interest expense by $3,600 per annum. Cash flow positive. Have a look at the forecast capital growth for this median property – 30% over 5 years – a capital improvement of $106,500 – around $21,000 on average each year. Owning certainly beats renting in Rosemeadow. This best rents report nominates the high yielding suburbs in every state across Australia.