Forget warm weather and amusement parks, there’s more important reasons to head to Queensland.
According to recently released data from onthehouse.com.au, the Sunshine State can lay claim to close to half of the Australian suburbs that have the best combination of rental yields and capital growth predictions.
“The data revealed 56 suburbs across Australia where rental yields are above 5% and capital growth predictions are at least three per cent over the next eight years,” onthehouse.com.au market analyst Eliza Owen said.
“Of these suburbs, 41% were found in the Queensland area, while News South Wales boasted only 18 per cent of suburbs on the list,” Owen said.
According to Owen, the situation in Queensland is one that would allow investors to find property where rental amounts would cover mortgage and interest repayments.
“High rental yielding properties can be found in suburbs that are affordable, but also desirable for people to rent in,” she said.
“Ideally, the rent received would be enough to positively gear an investment.
“This is a great potential strategy for young people in Sydney and Melbourne who are keen to get on the property ladder, but have been priced out of these metropolitan areas.”
According to the onthehouse.com.au data, Roma is the top Queensland suburb in in terms of rental yield and capital growth, with a median priced house of $303,500 returning a yield of 6.59% and expected to increase in price by 9% over eight years.
Logan Reserve is the next best Queensland suburb, a house worth the median price of $394,500 providing a yield of 5.63% and eight-year projected capital growth of 7%.
Tanah Merah (median house price of $408,000) and Morayfield ($334,000) are both returning yields of 5.54%, but Morayfield is predicted to see capital growth of 9% over eight years compared to Tanah Merah’s 5%.
Curra, with a median house price of $233,500, is providing yields of 5.39% and has its capital growth projected at 7% over eight years.
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