A surge in rental demand and stabilising interest rates have brought investors back into the property market, with rental incomes covering mortgage repayments in select suburbs, according to PropTrack.
“Investors are capitalizing on rising rents and yields,” said Megan Lieu (pictured above), economic analyst at REA Group.
In regional NSW, suburbs like South Lismore and Broken Hill lead with investors earning an additional $581 and $408 after covering mortgage costs.
Similarly, Victoria’s Carlton and Notting Hill provide excess income for investors.
“Rents are offsetting mortgage repayments and even delivering positive cash flow,” Lieu said.
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Regional Queensland boasts 50 suburbs where rental income covers mortgage costs, with Moranbah leading the state.
Western Australia leads with the highest number of suburbs offering positive cash flow for investors, with Baynton and Nickol topping the list.
“WA saw the strongest growth in investor lending, up 48% year-on-year,” Lieu said.
While suburbs in regional areas are thriving, major cities like Sydney and Brisbane show fewer opportunities for investors to cover mortgage repayments through rent.
There were no suburbs in these cities where rents fully offset mortgage costs, given the higher home prices.
With rents expected to continue rising, albeit at a slower pace, Lieu forecasts further investor activity in the market.
“This trend is good news for investors and renters alike, as it promises improved rental availability and a more balanced market,” Lieu said.
For PropTrack’s full list of prime suburbs for investors, visit the realestate.com.au website.
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