There are a lot of contributing factors that make a good investment property, such as high rental returns or buying in an in-demand location where tenant activity is up.
If you are in the market to invest, it’s wise to search in the suburbs where tenants are most active. Generally speaking, when suburbs are popular among renters’ landlords have an easier time leasing out their property, in fact you might even have the luxury of choosing out of multiple applicants.
REIWA has released a ‘Top 10’ list of rental growth suburbs in the last 12 months!
1. North Beach
Median house price: $880,000
A coastal northern suburb of Perth with huge investment potential, drawing in tenants to its attractive lifestyle appeal. In the year to March 2019, North Beach’s leasing activity increased 28.6%, while leasing activity in the overall Perth region declined 8%. Better still? On average, tenants in the area are paying a weekly median rent price of $520.
2. Salter Point
Median house price: $1.225 million
Leasing activity in Salter Point increased 25% over the last year. Close to the Perth CBD and public transport, Salter Point offers tenants the opportunity to live in one of Perth’s affluent suburbs, with stunning river and city views. Tenants renting in Salter Point are paying a median rent of $498 a week.
3. Bennett Springs
Median house price: $430,000
If you are considering buying an investment property north of the river, consider Bennett Springs. Like Salter Point, tenant activity is strong in the area, having also increased 25% in the last 12 months.
Bennett Springs is an affordable area to buy an investment house, but it will still give you a higher rental return than the Perth region, with tenant’s paying a median weekly rent of $400.
4. Mundaring
Median house price: $570,000
Despite the suburb being 45 minutes from Perth, Mundaring proved popular with tenants in the year to March 2019, with leasing activity up 24.1%!
Situated away from the hustle and bustle of city living, Mundaring holds great appeal for families, who are paying a weekly median rent price of $370.
5. Daglish
Median house price: $1 million
Daglish is a small western suburb of Perth with lots of investment potential. Located within the City of Subiaco, Daglish is only four kilometres from Perth CBD and is well served by public transport making it highly desirable among tenants. Daglish saw leasing activity increase 23.5%, with rental return of $460.
6. Beechboro
Median house price: $361,000
Beechboro is a large developed suburb which has been subdivided with many estates. Beechboro ticks all the boxes from an investment perspective, with leasing activity increasing 20.8% while the average rental yield in the area is close to 5%!
The suburb has a median rent price of $318 a week, making it an affordable option for tenants.
7. Guildford
Median house price: $652,500
Coming in at number seven on the list is Guildford, which saw leasing activity increase 20.8% during the last year. Guildford is situated on the Swan River in Perth’s east, and is best known for its colonial architecture and rich history. Tenants living in Guildford pay a weekly median rent of $380.
8. West Leederville
Median house price: $1.25 million
The inner suburb of West Leederville saw a 17.7% per cent increase in tenant activity during the year to March 2019. Landlords with investment properties in West Leederville are charging a median weekly rent price of $590.
9. Perth
Median house price: $780,000
During the year to March 2019, leasing activity rose 16.7% in the suburb of Perth with many tenants who look for a rental are attracted to the suburb due to its convenience!
10. Coogee
Median house price: $735,000
Rounding out the list of Perth’s rental hotspots is Coogee, which saw leasing activity increase 16.3% Coogee is located just south of Fremantle and has recently undergone major developments. New houses in the area boast amazing views of Coogee beach and the marina!
More on reiwa.com.au