Meet the cash flow kings of Australia

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If you’re looking for the best rental yields in the country, look no further than Palmerston in the Northern Territory or the resource centres in central Queensland. These and other markets top our list of the best cash flow hotspots in Australia…

You can’t have your cake and eat it, they say. We say: what’s the point in having cake if you can’t eat it?

Professional property advisors tell us that capital growth is king and that aiming simply for cash flow is a short sighted strategy. You and your bank manager may think a little differently.

When it comes to meeting your monthly mortgage repayments, there’s no substitute for a property that pays for itself. Capital growth will always be a requirement, but few could argue that having a property that covers your mortgage obligations and leaves you with a little cash leftover is a gem. It’s lower risk too.

With that in mind, we’ve dug through the latest RP Data figures and uncovered the country’s 20 markets with the best rental returns.

Queensland is king

While the top rental yields in the country can be found in the Northern Territory, it is Queensland resource towns that make up the lion’s share of the top listed best yielding markets.

It’s not hard to see why. In towns such as Moranbah and Dysart, where the average house is 4-bed, 2-bath, landlords are typically charging weekly rents between $1,300 and $1,500 and largely staying tenanted..

This may not be any news to savvy investors, however. Both Dysart and Moranbah are ultra-popular with buyers. Dysart auction clearance rates are at 100% – meaning that anything that goes onto the market via auctions is getting sold.

RP Data figures also indicate that Dysart properties typically take just 49 days to get sold and that sellers have the upper hand in the negotiation process – the average vendor discount is just 3%.

Compare this to, say, Bondi in Sydney, and the popularity of Queensland mining centres starts to show. Only 57% of properties that are auctioned get sold in Bondi, according to DSRscore.com.au, while vendors are typically giving away 11% discounts on the properties they sell.  

Mark your Territory

Palmerston, an emerging area around Darwin, also features prominently in the high end of the list. Southern suburb Bellamack takes the top honours for having the best rental yields in the country at a whopping 15.3%.

What this means is that investors are typically getting $31,460 a year in rent on properties that cost $205,000.

The list

State LGA Suburb Median Price Average Annual Growth Weekly  Rent ($)  Yield
NT Palmerston BELLAMACK (H) $205,000 12.6% 605 15%
QLD Isaac DYSART (H) $478,750   1300 14%
QLD Isaac MORANBAH (H) $610,000   1500 13%
WA Roebourne PEGS CREEK (H) $690,000 14.4% 1650 12%
NT Palmerston FARRAR (H) $249,000 26.4% 580 12%
QLD Moreton Bay BELLARA (U) $116,296 5.7% 270 12%
TAS West Coast ZEEHAN (H) $65,500 24.3% 150 12%
QLD Rockhampton LAMMERMOOR (U) $182,000 10.3% 400 11%
QLD Whitsunday BOWEN (U) $155,000 14.2% 330 11%
NSW Narrabri BOGGABRI (H) $157,500 27.4% 330 11%
WA Port Hedland PORT HEDLAND (U) $728,500 25.1% 1500 11%
QLD Cent. Highlands BLACKWATER (H) $365,000 29.3% 750 11%
WA Roebourne MILLARS WELL (H) $740,000 13.9% 1500 11%
WA Port Hedland SOUTH HEDLAND (H) $754,250 21.2% 1500 10%
WA Coolgardie KAMBALDA WEST (H) $133,000 9.6% 260 10%
WA Port Hedland SOUTH HEDLAND (U) $640,000 28.3% 1250 10%
WA Roebourne BULGARRA (H) $745,000 17.2% 1450 10%
QLD Dalby WANDOAN (H) $315,000   600 10%
WA Roebourne BAYNTON (H) $965,000 30.4% 1825 10%
WA Roebourne BULGARRA (U) $450,000 22.5% 850 10%

This list was compiled using February RP Data figures. Always do your own research before making an investment decision. For stories with a greater depth of analysis, forecasting and comment, grab a subscription to Your Investment Property here.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : westmead , reservoir , keperra , rockville , torrensville

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Comments
  • DiMark says on 13/04/2012 07:29:34 AM

    Sadly more recent news says BHP has stopped signing new leases in Moranbah and BHP has just closed a mine near Dysart. Given the reliance these particular towns have on one company, these areas are surely now too high risk for new investors to consider.

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