This article is from the Australian Property Journal archive
DARWIN and Hobart offer the best opportunities for residential property investors to generate a healthy cash flow on the purchases, accounting for eight of the top ten suburbs across the country’s capital cities.
New research from Propertyology shows Darwin’s Karama is the best capital city cash flow suburb in Australia, with a median house price of $392,000 and a positive cash flow of $3,600 per annum if purchased with a 20% deposit, or $1,700 using 10%.
“While Darwin’s market has been an underperformer over the past three years, investors won’t be as concerned if they own a property that’s actually supplementing their income,” Propertyology’s head of research, Simon Pressley said.
Hobart continues to produce the strongest capital growth in the nation, with Risdon Vale, Gagebrook and Chigwell rank third, fourth and fifth respectively. Risdon Vale has a median price of $222,500 and can return $3,435 per annum on a 20% deposit and $2,322 per annum with 10%, followed by Gagebrook ($170,000, $3,339, and $2,489 respectively) and Chigwell ($260,000, $3,033, and $1,733).
The list shows the best five suburbs in the eight capital cities.
Also in the overall top ten were Coopers Plains in Brisbane, in second spot ($398,750, $3,632 and $1,638), while Muirhead and Malak in Darwin were sixth and tenth. Hobart’s New Norfolk and Bridgewater came in at eighth and ninth, and Brisbane’s Cedar Vale seventh.
Russell Island, Blackstone and Gailes also represented Brisbane, and Wagaman and Virginia for Darwin.
Adelaide suburbs Davoren Park ($188,750, $2,369 and $1,425), Smithfield Plains, Elizabeth North and Elizabeth East were all next, on the edge of the top ten, and Hackham West was further back.
The highest ranking Perth suburb was Brookdale, with a median price of $258,000, cash flow of positive $917 per annum for a 20% deposit and negative $373 at 10%. Perth was also represented by Hillman, Dayton and Medina.
Gilmore ($545,000, -$22 and -$2,747) was the top-ranked Canberra suburb, which also featured Gowrie, Richardson, Charnwood and Calwell.
Millgrove in Melbourne’s outer suburbs was the city’s best ($365,000, -$1826 and -$3,651), followed by Rockbank, Kurunjang, Melton South and Warburton.
Sydney was best represented by Lake Munmorah ($490,000, -$3,093 and -$5,543), alongside Watanobbi, Mannering park, Kanwal and San Remo.
Australian Property Journal
