Rental returns in regional Victoria are higher than in Melbourne. We take a look at the best yielding towns in regional Victoria.
New data from the Real Estate Institute of Victoria shows that two and three-bedroom homes in regional Victoria provided better rental returns for investors than the same property types in Melbourne.
Rental returns for two-bedroom homes in regional Victoria were 5.3 per cent for the year to March, and for three-bedroom homes rental returns were 4.9 per cent.
In comparison, a two-bedroom home in Melbourne delivered a return of 2.7 per cent in the year to March, while a three-bedroom home returned a rental yield of 3.0 per cent.
* indicates fewer than 50 leases were recorded for the suburb.
Source: REIV.
Source: REIV.
Source: REIV.
In the year to March, two-bedroom homes in Sale produced a rental return of seven per cent, while three-bedroom homes in the Gippsland towns of Moe, Morwell and Bairnsdale recorded yields of more than 6.5 per cent.
Though it doesn't have the same rates of capital growth as Melbourne, regional Victoria is increasingly attractive for investors because it offers high returns, said Joseph Walton, president of the Real Estate Institute of Victoria.
“While capital growth in regional Victoria has been more moderate, country Victoria offers investors some of the state’s highest rental returns," he said.
Walton said regional Victoria offers an affordable entry point for investors, and is likely to benefit in the long term from increased spending in infrastructure.
“Regional Victoria provides real value for money with affordable entry points to the market and high rental returns, allowing investors to service their loan," he said.
“Property is a long-term investment. Improved infrastructure and amenities across the state are likely to drive house price growth in the coming years."
Read more about real estate in regional areas around Australia:
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