Higher interest rates and rising home values have made it near impossible to buy investment properties that fully pay for themselves, but rentals that are earning enough to cover the interest repayments can still be found in more than 80 suburbs nationwide, data from CoreLogic shows., a large chunk of those areas are also achieving strong capital gains of up to 17 per cent each year.
“Total growth in rents is about 49 per cent since March 2020, which is much higher than what we’ve seen across capital cities,” she said. Perth-based buyer’s agent and Resolve Property Solutions director Peter Gavalas said Perth’s property market was becoming an investment target by Sydney and Melbourne buyers due to its affordability, high yields and strong capital growth prospects.
Mosman Park, Thornlie and Wembley are also racking up strong cash flow at $148, $222 and $270 a month respectively. In the past year, unit values in those suburbs had increased by 8.8 per cent, 11.6 per cent and 6.7 per cent respectively.Outside Perth, units in Waterford West in south-east Queensland and Spring Hill in inner Brisbane are also earning high enough rents to cover the mortgage repayments and still delivering $80 and $23 cash flow a month.