Where in Australia is the most lucrative for property investors? Move over scary devils, Tasmania has a new claim to fame \u2013 good rental returns.<\/strong><\/p>\n New data released by CoreLogic RP Data shows Hobart is currently delivering the best average gross rental yields of any Australian capital city, for both houses<\/a> and units.<\/p>\n A property\u2019s gross yield is calculated by taking the annual rental income<\/a>, dividing it by the property value, and then multiplying it by 100. For example, a property which earns $375 a week in rent, for a total of $19,500 a year, on a property purchased for $450,000, returns 4.3%.<\/p>\n Hobart is popular among both homeowners and renters. Picture: Getty<\/p>\n<\/div>\n Net yield figures account for expenses. A combination of low house prices and rising rent leads to higher yields.<\/p>\n The data shows Hobart, where the average house costs $398,522, at the top of the list for houses, with a 5.5% yield. It\u2019s also best for units, which cost on average $305,592, with a 5.8% yield.<\/p>\n The suburbs of Gagebrook (9.2%), Bridgewater (8.6%), Risdon Vale (8.5%) and Clarendon Vale (8.2%) lead<\/a> all comers when it comes to houses.<\/p>\n For units, the suburbs of Rokeby (7.7%), Bridgewater (7.6%), Claremont (7.3%) and Montrose (7%) are the top performers.<\/p>\n For houses, the next best performing city is Darwin (4.8%), followed by Adelaide (4.6%), Brisbane (4.5%), Canberra (4.4%) and Perth (4.1%). The investor hot spots of Melbourne and Sydney \u2013 where property values are highest \u2013 round out the list with 3.3% and 3.2% respectively.<\/p>\n Canberra, where the average house costs $434,371, is second behind Hobart when it comes to yields for units, with 5.4%. The nation\u2019s capital is followed by Darwin (5.3%), Brisbane (5.2%), Adelaide (5.1%) and Perth (4.4%). Again, Melbourne (4.4%) and Sydney (4%) bring up the rear.<\/p>\n REA chief economist\u00a0Nerida Conisbee says Tasmania has been on \u201cthe up and up\u201d for several years, with Hobart the most in-demand city for buyers and<\/em> renters.<\/p>\n \u201cThis is based on the economy moving from having a government and agricultural focus to tourism \u2013 which has really taken off \u2013 and strong growth in the education sector, with the state promoting itself heavily to overseas students and attracting Chinese investment,\u201d she says.<\/p>\n \u201cIt\u2019s also the cheapest capital city in Australia to buy in. There isn\u2019t a single suburb in Hobart where the median is $1 million, which is seen in other capitals, so that\u2019s a factor,\u201d Conisbee adds.<\/p>\n Coming off a low base (house price-wise) and with an increasing number of people looking to rent, higher yields are the result, she says.<\/p>\n While yields are attractive, investors should think carefully about which capital is best.<\/p>\n \u201cIt depends what kind of investor you are. Are you looking for capital growth or rental return? Of course strong yields are great, but many investors buy where the yield may be lower, but they bank on the fact the property itself will increase in value,\u201d Conisbee says.<\/p>\n Hobart also the cheapest capital city in Australia to buy in, \u00a0with no suburb with a median over $1m. Picture: realestate.com.au\/buy<\/p>\n<\/div>\n Highest gross rentals<\/a> (houses) in capital cities \u2013 city, state, median value, median weekly rent, gross rental yield;<\/p>\n Highest gross rentals (units) in capital cities \u2013 city, state, median value, median weekly rent, gross rental yield;<\/p>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"![\"Hobart](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/images\/2000x1500-fit%2Cprogressive\/2017\/03\/03140048\/Hobart_Suburbs.jpg?resize=2000%2C1500&ssl=1\")
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<\/p>\nHighest rental yields in Australia\u2019s capital cities (houses)<\/h2>\n
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Highest rental yields Australia-wide (units)<\/h2>\n
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