Best Rent Report
September 2016 Edition Now Available!
Data to the quarter ending July 2016
About this Report
The Best Rent Report is now available in soft copy format! The report now provides the top 50+ suburbs for investor returns and includes income and affordability data for each suburb!
This edition's report includes 50 suburbs in total and the state breakdown is NSW (25 suburbs for houses, 2 for units), QLD (12 houses, 2 units), SA (1 houses), TAS (6 houses, 2 units).
The Best Rent Report is perfect if you are looking for a positively geared or best possible cash flow investment property without compromising capital growth opportunities in the long term.
Importance of high rental returns for investors
Negative gearing on residential property is only successful when net future capital gains exceed net rental losses, sale, acquisition, holding and capital expenditure costs of the property. Reducing your reliance on capital growth as the only positive income source associated with property investment helps to reduce your risk, and locating positively geared or neutrally geared residential properties is the way to do this. Positive gearing simply means that your costs of holding the property (interest, rates, insurances etc) are less than the rental income that you receive. If you are looking to build a property portfolio, having the best possible rental yield will assist with your affordability to purchase additional properties sooner.**
How the Best Rent Report is created
Residex starts with quantitative research by calculating capital growth predictions and current yields of units and houses for every suburb in Australia. Results are ranked by rental yield, and the average predicted growth over eight years and the rental yield indicate the 'total return' estimate of an investment property. Results with total returns less than eight per cent are excluded from the list. Affordability is also considered in the suburb selection process. Analysts then turn to qualitative research to remove results with higher risk - such as very small localities, high environmental risk or areas with only one major employer. Analysts are also looking for areas with strong rental demand and a rationale for this to increase in the region. The final result is an exceptionally good shortlist that investors could not replicate with individual research.
Residex has been forecasting property growth since 1994 with excellent results
When using information that predicts future growth it is vital to have confidence that the information provider is reliable. Analysis of Residex Reports shows how much Residex Predictions have exceeded property market performance... more
For each suburb and town in the Best Rent Report Residex provides:
- Forecast average annual growth over the next eight years
- Current rental yields confirmed by local agents, expressed as dollars per week and rental yield percentage
- Full colour location map
- Locality description
- Details of local facilities and infrastructure
- Population and demographic detail according to ABS 2011 Census Data
- The number of properties in the location
- Local industry and employment opportunities
- Estimated vacancy periods
- Typical purchase price
- Graphs for historical rent and capital growth rates over the past five years
- Income and rental affordability for each suburb
Annual Subscription Available
Are you an avid investor always looking to expand your property portfolio? Get an annual subscription to the Best Rent Report and receive four Reports for the price of three!
Frequently Asked Questions
How do I know I can trust Residex data?
Residex is now part of CoreLogic, Australia’s largest provider of property data and insights. Our data is used by real estate agents, mortgage brokers, the finance industry and government. Click here to see an analysis that shows how much Residex Predictions – a feature of the Best Rent Reports - have exceeded property market performance... more
"I don't think that there is another company which provides such data as in the Best Rent Report. It provides all the information any investor would need for good investment."
-Eric A, Mascot
* Total predicted return is the sum of the current rental yield and the average predicted capital growth over 8 years.
** This commentary is general in nature, is not legal or financial advice and should not be relied upon as such. Residex recommends all investors gain independent written legal and financial advice.