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After a number of years of residential investors sitting on their hands and a consequential rental shortage, there is much to anticipate as we approach the end of the rental moratorium on 28 March 2021.
There is strong demand for rental properties, and this combined with record low interest rates and expected gross yield growth creates the perfect potion that WA investors have been waiting for.
With home loan interest rates at around two per cent, it’s now more attainable than before to find a property that is generating a positive rental yield even after interest costs and other expenses.
Here are the top 10 Perth suburbs at or near the Perth median house price, where investment properties are likely to be positively geared, making it a suburb worthy of consideration to invest in.
To put things into perspective, the top 10 suburbs to consider investing in all generate a higher rental yield than the overall Perth region which is 4.4 per cent.
Investors who have a rental house in Marangaroo are on average returning a gross rental yield of 4.9 per cent. With a median sale price of $405,750 and median weekly rent price of $380 it’s highly likely you would be making a rental profit off your rental
property even after all costs.
Marangaroo is approximately a 20-minute drive from north of Perth CBD and is a popular amongst families, retirees and young professionals, with its most prominent feature being the Marangaroo Golf Course.
High Wycombe is also another suburb to consider investing in, producing a rental yield of 4.8 per cent. This is based off a median sale price of $430,000 and median weekly rent of $400.
It’s no wonder High Wycombe is a good suburb to invest in, with residents drawn to the suburb’s inner and outer city lifestyle balance. Located at the foot of the Perth hills, High Wycombe appeals to families and is ideal for FIFO workers with the Perth
Potential R40 rezoning and the Labor Government’s proposed METRONET railway service would also point to the suburb’s potential for capital growth, maintaining its strong appeal for prospective tenants and buyers alike.
Investment houses in Bennett Springs are also giving good rental returns, aligning with High Wycombe and its 4.8 per cent rental yield.
Buying a house in Bennett Springs will set you back a median sale price of $472,000 with median weekly rental returns of $435.
Located within the City of Swan, Bennett Springs is a family friendly suburb with plenty of green space and parklands. It has an array of schools nearby and is close to many of the tourist attractions in the Swan Valley.
Continuing the trend of a 4.8 per cent rental yield is Brabham, located just around the corner from Bennett Springs. Tenants living in Brabham are paying a median weekly rent of $378 and the median sale price is slightly more affordable than its neighbour,
Bennett Springs, at $412,000.
Brabham also shares all the attractions of the Swan Valley and promotes are quiet lifestyle away from the hustle of the Perth CBD while still being easily accessible when needed.
Heading back north of Perth is the suburb of Pearsall. Investment houses in Pearsall are providing investors with high rental returns, turning over a gross rental yield of 4.8 per cent.
Pearsall’s median sale price is $437,000 and tenants in the suburb are paying a weekly median rent of $400, making it in line with the overall Perth medians.
Pearsall is about a 30 minute drive from the Perth CBD and 15 minutes from the coast.
Forrestfield is the fifth and final suburb in Perth to generate a rental yield of 4.8 per cent and is another example of a positively geared investment suburb.
Forrestfield has a median sale price of $405,000 and a median rent price of $370 per week - $30 less than the overall Perth region, making it a relatively affordable option for renters,
The much-anticipated METRONET railway line will also run near to Forrestfield, adding value to the suburb and another means of transport.
Forrestfield is known to be popular among FIFO workers, being close to the airport, but also has a balance of families and first home buyers. Situated in the Perth foothills, the suburb features many scenic bush-walking trails and lookouts.
With a rental yield of 4.7 per cent, Queens Park is another Perth suburb to consider purchasing an investment house in. At a median sale price of $407,000, tenants pay a median weekly rent of $370 – generating a positive rental yield for most properties.
Located 10km from the city, Queens Park is an affordable option for tenants who still want to be close to the Perth CBD, Curtin University or Victoria Park.
Locals say the Quattro Development has given the suburb a makeover, reinvigorating the streets with presentable homes and estate style living.
If you are seeking an investment opportunity south of Perth, then don’t run your eyes past Dawesville.
Investors who are renting out a house in Dawesville are making an average gross rental yield of 4.6 per cent.
Dawesville is a coastal suburb within the City of Mandurah located between the Peel Harvey Estuary and the Indian Ocean. Beautiful water vistas including the beach, the estuary and canals are a staple of Dawesville's tranquil suburban area, offering residents
an idyllic lifestyle.
If you are considering buying an investment property in Dawesville, the median house sale price is $414,000 and the median weekly rent is $370.
Investment houses in Maida Vale are also bringing in high rental returns for property owners. With a median sale price of $475,000 and a median weekly rent of $423, you are looking at a rental yield of 4.6 per cent.
Another suburb located in the beautiful foothills of Perth, Maida Vale has a friendly community with the benefits of rural living, but the Perth CBD is 16 kilometers away for when you need it.
Maida Vale is a family orientated suburb however is popular amongst retirees and young working professionals with plenty of access to public transport.
Last but not least, Sinagra is considered a good investment suburb for houses, bringing in a rental yield of 4.6 per cent.
A northern suburb of Perth, Sinagra is considered a quiet, clean, safe and friendly suburb making it a sought-after place to live amongst tenants and buyers alike.
Sinagra is relatively affordable, with a median sale price of $450,000 and a median rent of $400 per week.
With the moratorium coming to an end on 28 March, now is an opportune time to invest in a rental property.
If you’re a property investor or thinking of investing, now is the time to consider taking the plunge or consider expanding your portfolio, while also being able to reign in some positive cash flow.
To find your next investment, search what’s for sale in Perth on reiwa.com or contact a REIWA buyer’s agent who can help you find the ideal property for you.
*data is filtered for suburbs with 28 or more transactions during the 12 months to January 2021