By reiwa.com and www.communitynews.com.au
Investors looking for a good rental return on their investment would do well to consider buying a house in Bullsbrook or a unit in Glendalough.
They topped REIWA’s lists of the best performing suburbs for rental yield for houses and units in the 12 months to April 2018. Both suburbs offered a 5.9% rental yield, which is a measure of the annual rental income generated by an investment property as a percentage of its value.
The higher the yield, the better the annual return for an investor. By comparison the rental yield for houses for the Perth Metro Region was 3.6% and 4.1% for units.
Whether they are looking for a house or unit, something close to the city or along the coast, there are plenty of affordable opportunities for investors; 19 of the suburbs identified by REIWA have median house or unit prices below the Perth medians.
When it came to houses, Medina was the most affordable suburb with a median house price of $240,000. It offered a rental yield of 5.4% based on a weekly median rent of $250. Stratton was the most expensive with a median house price of $340,000. Rockingham was the most affordable for units with a median unit price $242,500 offering a yield of 5.8% based on a weekly median rent of $270. Innaloo had a median unit price of $405,000
Top 10 Suburbs for Rental Yield – Units
Suburb Median Unit Price Median weekly Rent Rental Yield Ave. Days to Lease
Glendalough $243,250 $275 5.9% 49
Rockingham $242,500 $270 5.8% 54
Nollamara $296,000 $320 5.6% 53
Queens Park $288,000 $310 5.6% 50
Belmont $315,000 $320 5.3% 54
Midland $281,000 $280 5.2% 65
Innaloo $405,000 $400 5.1% 47
Rivervale $349,475 $330 4.9% 51
Balcatta $355,000 $330 4.8% 56
Cannington $345,000 $320 4.8% 54
Perth Metro $403,000 $320 4.1% 52
Top 10 Suburbs for Rental Yield – Houses
Bullsbrook $320,000 $360 5.9% 52
Medina $240,000 $250 5.4% 53
Parmelia $267,000 $270 5.3% 52
Armadale $250,000 $250 5.2% 61
Cooloongup $282,500 $280 5.2% 58
Maddington $308,000 $300 5.1% 55
Stratton $334,000 $320 5.0% 55
Camillo $261,500 $250 5.0% 62
Warnbro $317,500 $300 4.9% 62
Merriwa $320,000 $298 4.8% 59
Perth Metro $521,500 $359 3.6% 49