If you are a property investor looking to diversify your portfolio, buying in regional WA might be the right option for you.
It can be difficult to know which suburb you should invest in, so we have revealed the five regional centres which produced the highest rental yields for WA investors in the 12 months to June 2018.
What is a rental yield?
The rental yield is the measure of how much rental income an asset is generating, as a percentage of the property's value. The rental yield is useful for indicating the potential return of an investment property. A high yield means good annual returns
for investors.
To put things into perspective, the rental yield for Western Australia (excluding the Perth Metro region) for houses currently sits at 5.2 per cent based on regional WA's overall median house rent price of $340 per week and median house price of
$338,000.
1. Port Hedland
Coming in at number one on the list is the Port Hedland regional centre, with a rental yield of 9.5 per cent. Port Hedland's median house price is $220,000 and the median weekly rent price tenants are paying is $400. Port Hedland is situated 1,638
kilometres north of Perth in the Pilbara region and is one of the three major iron ore ports in the Pilbara. It took an average of 44 days for tenants to snatch up a rental in the area.
Search for an investment property in Port Hedland.
2. Carnarvon
Carnarvon is second on the list, recording a generous rental yield of 7.8 per cent in the 12 months to June 2018. Situated 900 kilometres north of Perth, Carnarvon lies just south of Shark Bay and Ningaloo Reef and is north of the popular tourist destination
Exmouth. Carnarvon is the most affordable regional centre to buy an investment house in on the list, with a median house price of $200,000.Tenants in Carnarvon pay a median rent price of $200 per week.
Search for an investment property in Carnarvon.
3. Karratha
Next on the list is Karratha, a regional centre in the Pilbara region, with a rental yield of 7.5 per cent. Karratha is another northern region and has a median house price of $311,900. Those who might consider investing in Karratha can expect a median
rental return of $450 a week. Like Port Hedland, it took property owners an average of 44 days to secure a tenant.
Search for an investment property in Karratha.
4. Northam
At number four is Northam, which generated a rental yield of seven per cent. If you own an investment property in Northam, you can expect a median weekly rent price of $280. Northam is the closest region to Perth on this list, located just 97 kilometres
east of the state's capital city. Northam's median house price is $208,000, making it an affordable option for investors. Investment properties in the area may be vacant for an average of 67 days before it is leased.
Search for an investment property in Northam.
5. Kalgoorlie/Boulder
Rounding out the top five is Kalgoorlie. Kalgoorlie is a large, established city in the Goldfields region 596 kilometres east northeast of Perth. Kalgoorlie is home to the country's largest gold mine and is known for its desert red-dust landscapes.
Tenants in the area are paying a median rent price of $350 and the suburb's rental yield is six per cent.
If you are looking to invest in the area, the median house price currently sits at $305,000. Kalgoorlie has the fastest leasing time out of all the regions on the list, taking just 42 days to lease a property.
Search for an investment property in Kalgoorlie/Boulder.
To find out more about your regional centre, visit the regional WA page.
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