With investors increasingly priced out of the market in the mainland capitals, many are turning to Tassie as an affordable option to expand their portfolio.
It’s understandably daunting if you’re not familiar with the Apple Isle, but luckily for you, we’ve put together a list of the top-yielding suburbs across the state where investors can get into the market at a bargain price, while still enjoying excellent returns.
Hobart’s eastern shore and regional towns on the west coast are ripe for the picking for eager investors, and you’ll be amazed at the yields on offer!
Rosebery – yield 11.4 per cent
The median house price in Rosebery is a tiny $75,000, and you can expect to charge around $165 per week for the property, giving you a huge 11.4 per cent yield. This mining town is located 314km from Hobart and 110km from the nearest major centre, Burnie, so this is a small, regional outpost. However, there’s a captive rental market in the town, with almost 40 per cent of the housing stock currently being tenanted.
Zeehan – yield 8.6 per cent
You could be raking in an 8.6 per cent return on your investment property in Zeehan, on Tassie’s west coast. The median house price here is $87,000 and the median rent is $145 per week, making Zeehan a great choice for interstate investors looking to add to their profile with a low-deposit option.
Gagebrook – yield 8 per cent
With a median house price of $178,000, Gagebrook is an excellent choice for an affordable investment property. The median rent in the suburb is $275 per week, meaning you’re likely to score a return in excess of 8 per cent on your investment. Located on the eastern shore of Hobart’s Derwent River, this area is popular with young families.
Risdon Vale – yield 7.5 per cent
Landlords in Risdon Vale, on Hobart’s eastern shore, reap yields of around 7.5 per cent on their investment properties. Median rents in the suburb are $350 per week, while house prices sit at just $240,000, making them both affordable and lucrative.
Not looking for suburbs with good rental yields? Be sure to check out our list of Tasmania’s most affordable suburbs.
Waverley – yield 7.4 per cent
You’ll be able to charge around $250 per week in rent for an investment property in Waverley – a yield of 7.4 per cent on the median house price of $175,000. This inner-Launceston suburb has experienced good capital growth in recent years, and has a rental population of around 40 per cent.
Queenstown – yield 7.2 per cent
Further proof that savvy investors in Tasmania would do well to look outside the capital city, Queenstown on the west coast of the state has big yields on offer. The median house price is a bargain $100,000 and with median rents of $140 per week you can make a return of 7.2 per cent. This historic mining town has a reputation for being wet and cold, but the employment opportunities still draw renters to the area.
Bridgewater – yield 7 per cent
Another gem on the eastern shore in Hobart, Bridgewater offers investors yields in excess of 7 per cent, with a median house price of $227,500 and median rent of $310 per week. The suburb is 19km from the centre of Hobart, and has come a long way since its early days as a public housing area. There are several public and Catholic primary schools in the area, and a high school, making it a popular rental spot for families.