An in­vestor’s Perth top five

Pilbara News - - Property - Rachel Pre­ston-Bidwell Rachel Pre­ston-Bidwell is a rep­re­sen­ta­tive of the Real Es­tate In­sti­tute of Western Aus­tralia.

If you’re think­ing about pur­chas­ing an in­vest­ment prop­erty in Perth, we have listed the top five sub­urbs worth con­sid­er­ing based on their av­er­age gross rental yield.

In real es­tate terms, rental yield is a mea­sure of how much cash a prop­erty pro­duces each year, as a per­cent­age of the prop­erty value.

A high yield means good an­nual re­turns for in­vestors.

As a bench­mark, the rental yield for the Perth metropoli­tan re­gion sits at 3.8 per cent based on the over­all median rent price of $360 a week and median dwelling price of $488,000. This means a typ­i­cal prop­erty in­vestor can ex­pect to gen­er­ate a 3.8 per cent an­nual re­turn on their pur­chase price.

1. Glen­dalough

Sit­u­ated only 6km from Perth city, be­tween Lake Monger and Herds­man Lake, Glen­dalough has a rental yield of 5.5 per cent and a median rent of about $280 a week. Glen­dalough is an at­trac­tive in­vest­ment choice for its close prox­im­ity to the CBD and the Leed­erville en­ter­tain­ment hub.

2. Maida Vale

Next on the list is Maida Vale, which has a rental yield of 5.3 per cent. This sub­urb is close to the do­mes­tic and in­ter­na­tional air­ports, mak­ing it con­ve­nient for fly-in-fly-out renters. If you’re con­sid­er­ing buy­ing an in­vest­ment prop­erty in the area, you can ex­pect to re­ceive a median rent price of about $465 a week.

3. North­bridge

North­bridge rounds out the top five, with a rental yield of 5.3 per cent and a median rent price of $400 a week. This sub­urb is an ur­ban haven of hid­den bars, pop­u­lar restau­rants, brunch spots and bou­tiques. North­bridge house­holds are mostly made up of cou­ples, sin­gles and share houses.

4. Brook­dale

Brook­dale rounds out the sub­urbs with a rental yield of 5.3 per cent. If you pur­chase an in­vest­ment prop­erty in the area, it takes about 45 days to lease out and the median rent price is $298 a week. Brook­dale is a mixed-use sub­urb with ru­ral and res­i­den­tial ar­eas in its bound­aries. It’s also a pop­u­lar area for fam­i­lies.

5. Ken­wick

This sub­urb has a rental yield of 5 per cent and is near Roe and Al­bany high­ways, cre­at­ing easy ac­cess to the CBD, and Perth’s three air­ports. You could ex­pect to re­ceive a median rent of about $298 a week.

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