Queensland home to 18 best suburbs for rentvesting

By Gerv Tacadena | 30 Sep 2021

Queensland houses some of the most lucrative rentvesting suburbs for Australians looking to enter the property market.

Using data from Suburbtrends, a study by Well Home Loans listed 30 suburbs across Australia that possess ideal conditions for rentvestors, 18 of which are in the Sunshine State.

According to the study, these Queensland suburbs are currently experiencing upwards pressure on weekly rents and property prices.

Best suburbs in Queensland for Rentvesting

Suburb

Median Yield

Median Vacancy

Median Sale Price Range

Cairns – North

5.2%

5.0%

$425,000 – $835,000

Cleveland – Stradbroke

4.5%

6.8%

$600,000 – $780,000

North Lakes

4.4%

7.1%

$475,000 – $620,000

Capalaba

4.3%

5.2%

$545,000 – $720,000

Redcliffe

4.3%

7.0%

$490,000 – $735,000

Nerang

4.2%

2.8%

$550,000 – $770,000

Nambour

4.2%

2.9%

$495,000 – $910,000

Bald Hills – Everton Park

4.2%

5.5%

$560,000 – $852,000

Ormeau – Oxenford

4.0%

4.4%

$545,000 – $915,000

Sunshine Coast Hinterland

3.9%

3.5%

$571,000 – $880,000

Nundah

3.8%

8.5%

$600,000 – $826,000

Southport

4.2%

9.5%

$675,000 – $720,000

Buderim

4.0%

5.9%

$600,000 – $830,000

Wynnum – Manly

3.8%

6.9%

$630,000 – $855,000

The Gap – Enoggera

3.7%

9.1%

$645,000 – $830,000

Caloundra

3.7%

6.3%

$515,000 – $920,000

The Hills District

3.7%

2.6%

$600,000 – $830,000

Gold Coast - North

3.6%

5.5%

$520,000 – $900,000

Data Source: SuburbTrends

*Take note these figures above are only for detached houses.

The study claims it’s unlikely these areas will experience a substantial lift in new housing supply in the coming years.

This means that eventual demand for these suburbs would put further pressure on rents and prices, making them ideal investment locations.

The other 12 suburbs ideal for rentvesting are scattered across other states:

New South Wales

Western Australia

  • Augusta – Margaret River – Busselton
  • Cockburn
  • Joondalup

Tasmania

  • Hobart North-East

South Australia

Northern Territory

  • Litchfield

Australian Capital Territory

Where is it cheaper to rent than buy?

The unit markets in inner and middle-ring areas across Australia’s major capital cities, most of which have high vacancy rates, are good spots to rent a property in.

Given the high supply in these areas, landlords are compelled to lower their rents.

The report listed 55 unit markets where it is better to rent than buy:

State

Unit markets where it’s better to rent than buy

New South Wales

  • Parramatta
  • Canterbury
  • Blacktown
  • Newcastle
  • Tweed Valley
  • Richmond – Windsor
  • Auburn
  • Rouse Hill – McGraths Hill
  • Strathfield – Burwood – Ashfield
  • Kogarah – Rockdale
  • Hurstville
  • Blacktown – North

 

  • Bringelly – Green Valley
  • Botany
  • Carlingford
  • Ryde- Hunters Hill
  • Pennant Hills – Epping
  • Marrickville – Sydenham – Petersham
  • Southern Highlands
  • Sutherland – Menai – Heathcote
  • Bankstown
  • Hornsby

 

Victoria

  • Melbourne City
  • Maribyrnong
  • Stonnington – West
  • Essendon
  • Brunswick – Coburg
  • Dandenong
  • Casey – North
  • Colac – Corangamite
  • Frankston
  • Stonnington – East
  • Port Philip
  • Glen Eira
  • Yarra
  • Darebin – North
  • Hobsons Bay
  • Darebin – South
  • Keilor
  • Kingston
  • Surf Coast – Bellarine Peninsula
  • Knox
  • Maroondah
  • Boorondara
  • Banyule
  • Whitehorse – East
  • Moreland – North

Western Australia

 

Queensland

Tasmania

  • Hobart Inner

ACT

  • South Canberra

Source: Well Home Loans

Why consider rentvesting

Rentvesting is a burgeoning strategy among up-and-coming homebuyers who would like to own a property sooner.

The strategy involves buying an investment property in an affordable suburb while staying in lifestyle centres that are close to work.

Rentvesting enables renters to build equity with the investment property they purchased, essentially working as “forced” savings.

The strategy also allows renters to take advantage of tax benefits, as interest payments can be claimed as deduction.

Other expenses related to the management of the investment property are also tax deductible.

Well Home Loans CEO Scott Spender said a home should be considered an “economic asset”.

“You have to balance the emotional concerns about liveability and security with the hard-headed concerns about financial returns,” he said.

“That said, we’re definitely not telling first home buyers where they should and shouldn’t buy. Nothing is guaranteed.

“Some of the unit markets might turn out to deliver strong returns while some of those house markets might end up being poor performers.”

Photo by City of Gold Coast on Unsplash.

Top Suburbs : woolloongabba , mt lawley , stafford hts , melton , windale

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