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Australia’s top 30 suburbs for rentvesting
With house prices on the high side in many areas of Australia’s cities, many homebuyers are turning to the strategy of ‘rentvesting’ – buying an investment property where they can afford, and renting a home where they want to live. New research has revealed 30 suburbs around Australia where a rentvesting strategy could potentially pay off.
The research, commissioned by Well Home Loans and conducted by Suburbtrends, looked for ten suburbs in three different price bands, for budgets between $500,000 and $800,000. According to Well Home Loans, a combination of low vacancy rates and inventory levels in these areas, combined with high yields and growing median house prices, could help to ensure good cashflow and long-term growth potential.
Well Home Loans CEO, Scott Spencer, said that a rentvesting strategy could be an option for Sydney and Melbourne to consider, rather than buying an inner or middle ring unit that may not suit families, or buying a house on the city fringes that could mean a harder commute. He added that these buyers may be able to use their equity from their investment property to help them buy a house in their preferred area to live in.
“That said, rentvesting isn’t for everyone, because deciding where to live and buy is as much of an emotional decision as it is a financial one. So first home buyers should weigh up both those factors when deciding whether to follow the traditional owner-occupier path or choose the increasingly popular rentvesting option.”
Top 10 rentvesting suburbs - $500k to $600k
Rank | State | Suburb | Postcode | Median sale price for houses | Vacancy rate for houses | Median yield price for houses |
| 1 | WA | Darling Downs | 6122 | $506,000 | 0.0%* | 5.7% |
| 2 | QLD | Nambour | 4560 | $585,000 | 0.5% | 4.4% |
| 3 | TAS | Sorell | 7172 | $561,000 | 0.9% | 4.4% |
| 4 | TAS | Mornington | 7018 | $571,000 | 1.0% | 4.3% |
| 5 | TAS | Oakdowns | 7019 | $595,000 | 1.0% | 4.3% |
| 6 | TAS | Brighton | 7030 | $580,000 | 0.6% | 4.0% |
| 7 | NSW | Goulburn | 2580 | $529,750 | 0.7% | 4.0% |
| 8 | NSW | Cringila | 2502 | $595,000 | 1.1% | 4.0% |
| 9 | QLD | Kippa-Ring | 4021 | $580,000 | 0.4% | 3.9% |
| 10 | TAS | Bagdad | 7030 | $585,000 | 0.0%* | 3.8% |
Source: Well Home Loans. * When a suburb has a vacancy rate of 0%, that doesn’t mean the suburb literally has no vacant rental properties. Rental properties are regarded as ‘officially’ vacant when they’ve been on the market for 21 days or more. When a suburb has a vacancy rate of 0%, it means all rental properties are being filled in less than 21 days of being listed for rent.
Top 10 rentvesting suburbs - $600k to $700k
Rank | State | Suburb | Postcode | Median sale price for houses | Vacancy rate for houses | Median yield price for houses |
| 1 | QLD | Coombabah | 4216 | $660,000 | 0.3% | 4.3% |
| 2 | TAS | Midway Point | 7171 | $609,000 | 0.0%* | 4.3% |
| 3 | QLD | Meridan Plains | 4551 | $672,500 | 0.7% | 4.3% |
| 4 | QLD | Caloundra West | 4551 | $677,000 | 0.9% | 4.2% |
| 5 | QLD | Lower Beechmont | 4211 | $630,000 | 0.0%* | 4.1% |
| 6 | TAS | South Arm | 7022 | $642,000 | 0.0%* | 4.0% |
| 7 | NSW | Edgeworth | 2285 | $650,000 | 0.8% | 3.9% |
| 8 | NSW | Koonawarra | 2530 | $625,000 | 0.7% | 3.9% |
| 9 | QLD | Rothwell | 4022 | $600,000 | 0.2% | 3.9% |
| 10 | TAS | Warrane | 7018 | $600,000 | 0.0%* | 3.9% |
Source: Well Home Loans. * When a suburb has a vacancy rate of 0%, that doesn’t mean the suburb literally has no vacant rental properties. Rental properties are regarded as ‘officially’ vacant when they’ve been on the market for 21 days or more. When a suburb has a vacancy rate of 0%, it means all rental properties are being filled in less than 21 days of being listed for rent.
Top 10 rentvesting suburbs - $700k to $800k
Rank | State | Suburb | Postcode | Median sale price for houses | Vacancy rate for houses | Median yield price for houses |
| 1 | QLD | Highland Park | 4211 | $787,000 | 0.3% | 4.4% |
| 2 | QLD | Merrimac | 4226 | $770,000 | 0.1% | 4.3% |
| 3 | QLD | Little Mountain | 4551 | $780,000 | 0.2% | 4.1% |
| 4 | QLD | Forest Glen | 4556 | $794,000 | 0.0%* | 4.1% |
| 5 | QLD | Nerang | 4211 | $705,000 | 0.1% | 4.1% |
| 6 | QLD | Pacific Pines | 4211 | $775,000 | 0.3% | 4.0% |
| 7 | QLD | Bli Bli | 4560 | $769,000 | 1.0% | 4.0% |
| 8 | TAS | Lauderdale | 7021 | $725,000 | 0.0%* | 3.9% |
| 9 | NSW | Mirrabooka | 2264 | $755,000 | 0.0%* | 3.9% |
| 10 | QLD | Sippy Downs | 4556 | $770,000 | 0.4% | 3.9% |
Source: Well Home Loans. * When a suburb has a vacancy rate of 0%, that doesn’t mean the suburb literally has no vacant rental properties. Rental properties are regarded as ‘officially’ vacant when they’ve been on the market for 21 days or more. When a suburb has a vacancy rate of 0%, it means all rental properties are being filled in less than 21 days of being listed for rent.
Disclaimer
This article is over two years old, last updated on March 31, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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