UNITS are bagging investors more cash than those renting out houses in southeast Queensland, new figures show.
CoreLogic data shows investors have been banking some high returns on rental properties with one suburb posting an indicative 12 month gross yield of 11.9 per cent.
Deagon topped Greater Brisbane with the result for units.
Other top unit performers were Banksia Beach at 8.2 per cent, Redbank 7.9 per cent, Hillcrest 7.7 per cent, Waterford 7.5 per cent and Caboolture 7.2 per cent.
Units by far outperformed houses for rental yield, taking the top 21 suburb spots and dominating Greater Brisbane’s top 50. There were 39 unit results compared with 11 houses.
The best yield for houses was recorded in Dinmore and on Russell Island, with both at 6.5 per cent. Churchill and Woodford were next at 6.4 per cent, followed by Basin Pocket 6.3 per cent, Leichhardt 6.2 per cent, Ellen Grove and Riverview at 6.1 per cent and Gailes 6 per cent.
In terms of the highest rent achieved, houses dominated, taking nine of the top 10 spots.
Pullenvale was Greater Brisbane’s money suburb, pulling in a 12-month weekly median of $850, above Samford Valley at $825 and Ascot at $795.
Other top performers were Mount Ommaney $793, Tennyson (units) $750, Brookfield $743, Kenmore Hills $680 plus Mackenzie, Newport and Balmoral all sitting at $650 a week.
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DEAGON SOLID BUT SAMFORD HAULS HIGH RENTS
Jim McKeering Real Estate property manager Jacqui McKeering said Deagon was a hot spot for investors.
“It’s no surprise that Deagon comes up strongly as they are proving very handsome returns and are highly sought after by investors because there are multiple tenancies, the risk of ever being fully vacant is next to zero,” she said.
Other top unit performers in the northside were Taigum at 6 per cent, Boondall 5.9 per cent, Bracken Ridge 5.5 per cent, Fitzgibbon 5.3 per cent and Aspley and Carseldine both at 5.2 per cent.
The best yield for northside houses was recorded in Bracken Ridge, at 4.9 per cent.
In terms of the highest rent achieved, houses dominated. Bridgeman Downs was the northside’s money suburb, pulling in a 12-month weekly median of $600. Shorncliffe followed at $500, followed by Carseldine $490, and Nudgee $465.
The best yield for houses in the northwest was in Enoggera at 5.7 per cent, followed by Ferny Grove (5.6), Arana Hills (5.3), Albany Creek (4.9), and Mitchelton (4.8).
Ray White Samford director Suzie Crompton said the amenities in the area, and its proximity to nature, helped quality Samford homes demand rents of up to $1100 a week.
She said often homes going for $1000 per week also included fortnightly gardening service and monthly pool cleaning.
Samford homeowner Hayley Currell said she and her husband would ask for $1000 a week to rent their four-bedroom, two-bathroom home.
“There is something really unique about the community here,” Mrs Currell said.
Georgia Daley and Vennessa Oblein from Harcourts Clayfield. Picture: BRADLEY COOPER
CLAYFIELD’S CHARACTER SHINES THROUGH
RETENTION of community amenity is at the heart of property in Clayfield, according to leading realtor Carmel Murray.
Ms Murray, of Harcourts Clayfield, said investors and tenants were helped by a suburb-wide desire to preserve’s Clayfield’s austere character.
“It has always been a blue ribbon address and fortunately Clayfield has been saved from the boom in apartment construction,” she said.
“In Albion, Ascot, Hamilton and Nundah there are high-rises going up all the time, yet Clayfield retains its charm and nothing here is much more than three-storeys.
“It ensures the suburb retains its amenity and that is a major asset for investors.”
Ms Murray’s assertion that Clayfield represents good value for investors and renters is boosted by available infrastructure.
Road and rail transport options are in easy reach, domestic and international airports are less than six minutes away and the Toombul shopping centre is the perfect complement to Sandgate Rd shopping.
Her opinion is borne out by CoreLogic data showing Clayfield rental properties produced a 4.9 per cent annual yield, with the median asking price of $350 per week placing it among the best northside returns.
In comparison yields in Hamilton, Wooloowin, New Farm, Kedron, Lutwyche, Newstead, Windsor, Teneriffe and Ascot were between 3.7-4.5 per cent. Only Newmarket, Kelvin Grove, Bowen Hills, Fortitude Valley, Spring Hill and the CBD fared better.
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INNER CITY SHOWS STRONG RETURNS
UNITS at Woolloongabba have shown a 12 month gross yield of 5.1 per cent, according to the latest CoreLogic data. The suburb came in just behind Tarragindi at 5.4 per cent and South Brisbane with 5.2 per cent.
Susan Thomas, 28, has bought her first investment property in a suburb with one of the highest unit rental returns in the inner-south of the city.
Ms Thomas said rental yield and future market growth were key considerations in buying her one-bedroom Trafalgar Residences unit.
“I’ll be here for at least a year; I’m focusing on my uni and when I get a job I’ll see where it takes me,” Ms Thomas said.
“I’ll probably rent it out and keep it as an investment property and watch the market grow because I’m sure it will with everything going up.”
Trafalgar Lane Property Management on-site manager Peter Edge looks after rentals at the newly completed project and said it was mainly investors buying.
“Of 147 apartments … there would only be approximately 10 owner occupiers,” he said. “All the rest are investors.”
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Action shot of auctioneer, Kris Bradford from LJ Hooker. Picture: Bradley Cooper
TIMING ESSENTIAL TO SUCCESS IN THE SOUTH
It’s a case of right place right time if you’re planning to invest in a local rental property, according to real estate agents on Brisbane’s southside.
Investment units across the region are showing some of the strongest rental returns in Brisbane, according to statistics by CoreLogic RP Data.
Three southside suburbs feature in the city’s top 10 for annual unit rental yields, with Kuraby having the second highest average rental yield in Brisbane with 6.7 per cent.
Algester has the city’s third highest, at 6.5 per cent, Mt Gravatt sits just inside the top 10 at 5.9 per cent while Runcorn and Sunnybank Hills also performed well with yields of 5.8 per cent.
LJ Hooker Algester agent Chris Hubka has been working in the suburbs’ real estate market for the past decade and said he expected rental yields to continue to rise in the region.
“With property prices currently stable, rental yields will probably increase in the next six to 12 months,” Mr Hubka said.
He said LJ Hooker Algester managed more than 200 rental properties in the suburb with properties costing around $300,000 returning an average rent of $370 a week.
Ray White Mt Gravatt agent Grant Boman said strong returns within Mt Gravatt were linked to the area’s infrastructure and value for money.
“Westfield Garden City and the easy access to the city makes a lot of sense,” Mr Boman said. “There’s not many places in Brisbane that can get close to that percentage of rental yield.”
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LUXURY IS KEY TO SOUTHWEST
PULLENVALE has maintained its position as Greater Brisbane’s money suburb, claiming the top rental median.
The suburb’s sprawling properties recorded a 12-month weekly median of $850 — above Samford Valley ($825) and Ascot ($795).
Houses dominated the leaderboard for highest rent achieved, with other top performers including Brookfield ($743) and Kenmore Hills ($680).
The best performers in the western suburbs included units in Graceville with a 5.7 per cent yield and St Lucia (5.1 per cent), compared to the overall leaders of Deagon (11.9 per cent), Banksia Beach (8.2 per cent) and Redbank (7.9 per cent).
Belle Property Toowong principal Robin McIlwain said higher rents in Brookfield and Pullenvale related to lifestyle choices for many.
“Right now it is more viable to rent than it is to buy a prestige property, even with the interest rates as low as they are,” she said.
“The rental of an acreage property for a few years is ideal for people with young children and teenagers. They can have the room to run and ride horses without committing to a costly purchase and the maintenance that goes with acreage.”
She said Legacy Way had also had an impact.
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PENINSULA PERFECT FOR SOME INVESTORS
THERE is a good chance investors with rental units at Deception Bay, Rothwell, Kippa-Ring and Clontarf have made some good returns in the past year.
The latest data from CoreLogic found the average unit in these suburbs posted an indicative 12 months gross yield greater than 5 per cent.
Deception Bay took out the top spot for Peninsula suburbs with a yield of 6.7 per cent.
The best suburb in the Moreton Bay region, for yield, was Banksia Beach, fetching 8.2 per cent.
Units outperformed houses for rental yield across the Moreton Region, taking nine of the top 10 spots.
Deception Bay and Rothwell were the only two Peninsula suburbs where a house returned a rental yield above 5 per cent.
Houses fetched a higher median rental price than units across the Peninsula.
Newport can claim the title of the highest rent, with the average weekly price sitting at $650, followed by Rothwell at $395 and Scarborough for $390.
Stephan Siegfried Principal of One Agency Redcliffe said the Peninsula market has always been “very stable”.
Mr Siegfried said there were low vacancy rates across the area and that rental yields were solid.
“If the price is right and your property is well maintained you should not have a problem getting a tenant in Redcliffe,” Mr Siegfried said.
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Marty Dawe from RE/MAX Ultimate in Burpengary outside a rental property in Morayfield. Properties in the area are getting a good rental yield. Picture: Josh Woning.
RESULTS MIXED FOR GROWTH CORRIDOR
INVESTORS in North Lakes rental units have been banking solid returns, but below the returns of “less fashionable” suburbs in neighbouring Pine Rivers.
Units were renting for an average of $360 a week in North Lakes for a return of 5 per cent, as shown in the latest data provided by CoreLogic.
Elsewhere in Pine Rivers, Warner was returning 7 per cent and Brendale was returning 6.7 per cent.
Lawnton had a healthy return of 6.4 per cent and Strathpine 6 per cent.
David Deane Real Estate Strathpine co-director George Fragos said people looking at investing should first seek financial advice.
“The returns speak for themselves when you compare it to perching your money in cash,” he said.
Deagon topped Greater Brisbane in the CoreLogic data with a whopping return of 11.9 per cent. Another top unit performer was Banksia Beach at 8.2 per cent.
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HEAD SOUTH WEST FOR PERFORMERS
SOUTHWEST suburbs are generating high returns for rental property investors.
The latest data from CoreLogic showed Redbank had an indicative 12 month gross yield of 7.9 per cent.
The best yield for houses was recorded in Dinmore and on Russell Island, with both at 6.5 per cent. Churchill and Woodford were next at 6.4 per cent, followed by Basin Pocket 6.3 per cent, Leichhardt 6.2 per cent, Ellen Grove and Riverview at 6.1 per cent and Gailes 6 per cent.
For highest rent achieved, houses took nine of the top 10 spots. Mount Ommaney was a top performer with a weekly median of $793.
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LOGAN IN IDEAL POSITION
INVESTORS have been banking some high returns on rental properties in the Logan area.
Hillcrest is Logan’s top unit performer with a yield of 7.7 per cent, followed by Waterford with 7.5 per cent.
LJ Hooker Shailer Park principal Egita Hall said Logan rental properties were a good investment. She said if tenants worked in the CBD or on the Gold Coast, Logan was in an ideal position.
“If you buy a property worth about $320,000 and you’re getting $320 or $330 a week — that’s quite a good return,” she said.
Mrs Hall said a lot of areas in Logan had older properties for sale that were a good investment on return.
She named Loganholme and Loganlea as promising because of the hospital expansion and the new shopping centres.
“I think you do get a better return in Logan compared with the Gold Coast, dollar for dollar,” she said.
Original article published at www.couriermail.com.au by Paula Shearer and staff reporters 27/7/16