Image: Cairns Foreshore (Jorge Láscar via Flickr)
New research has highlighted 100 Australian suburbs and towns where property investors could generate higher rental yields, with small Queensland towns dominating the list.
Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.

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Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Redraw facility with $0 redraw fee
- Interest-only available
- Refi your existing OO loan to be eligible
Monthly repayments: $1,476
Advertised
Rate (p.a.)
1.99%
Comparison
Rate (p.a.)
2.71%
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Redraw facility with $0 redraw fee
- Interest-only available
- Refi your existing OO loan to be eligible
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) investment home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
For its latest Top Rental Performers Report, property analytics firm CoreLogic identified 100 suburbs and towns where houses or units demonstrated estimated gross rental yields of 5% p.a. or more over the 12 months to July 2019.
Number one on the list was Blackwater – a Central Queensland mining town home to around 5,000 people – with a gross estimated yield of 11.7% p.a. and a median rent of $260 per week.
According to the report, the median property value in Blackwater is $122,165.
The town was just one of 42 suburbs and towns from Queensland to make the list, with parts of Cairns and the Gold Coast heavily represented.
Across the other states and territories, 17 suburbs on the list were from New South Wales, 15 from South Australia, 15 from Victoria and 8 from Tasmania.
Western Australia, the Northern Territory and the Australian Capital Territory were each only represented by one suburb.
Second place on the list went to the New South Wales mining town of Broken Hill, which also had a gross rental yield of 11.7% p.a. and a median rent of $260 per week.
Rounding out the top three was Cairns suburb Woree, with a gross rental yield of 10.8% p.a. and a median rent of $260 per week. Interestingly, units were considered to have better rental yields than houses in Woree.
CoreLogic research analyst Cameron Kusher said the ‘best for rents’ areas had vacancy rates of less than 3% and demonstrated consistent rental growth.
The list was also only made up of suburbs with at least 20 sales over the 12 months to July 2019.
Houses represented the best rental opportunities in 63 suburbs from the list, while units offered the highest yields in 37.
Top 100 rental yield suburbs Australia
- #1 BLACKWATER, QLD - 11.7%
- #2 BROKEN HILL, NSW - 11.7%
- #3 WOREE, QLD - 10.8%
- #4 MANUNDA, QLD - 9.5%
- #5 KATANNING, WA - 9.1%
- #6 COBAR, NSW - 8.8%
- #7 BORDERTOWN, SA - 8.8%
- #8 BUNGALOW, QLD - 8.7%
- #9 MORANBAH, QLD - 8.7%
- #10 PORT AUGUSTA, SA - 8.4%
- #11 ELIZABETH NORTH, SA - 8.2%
- #12 HOLLOWAYS BEACH, QLD - 8.1%
- #13 PORT AUGUSTA WEST, SA - 8.1%
- #14 WESTCOURT, QLD - 8.0%
- #15 BRIDGEWATER, TAS - 7.9%
- #16 ARARAT, VIC - 7.8%
- #17 PARK AVENUE, QLD - 7.7%
- #18 MOOROOBOOL, QLD - 7.6%
- #19 PORTLAND, VIC - 7.6%
- #20 COROWA, NSW - 7.6%
- #21 PARRAMATTA PARK, QLD - 7.6%
- #22 STAWELL, VIC - 7.5%
- #23 SPRINGWOOD, QLD - 7.5%
- #24 WEST END, QLD - 7.5%
- #25 SMITHFIELD, SA - 7.5%
- #26 CAIRNS NORTH, QLD - 7.5%
- #27 QUIRINDI, NSW - 7.4%
- #28 HEATLEY, QLD - 7.4%
- #29 MORWELL, VIC - 7.4%
- #30 DAVOREN PARK, SA - 7.4%
- #31 ELIZABETH PARK, SA - 7.4%
- #32 MARYBOROUGH, QLD - 7.3%
- #33 NARRABRI, NSW - 7.3%
- #34 NEW NORFOLK, TAS - 7.3%
- #35 PORT PIRIE SOUTH, SA - 7.2%
- #36 SVENSSON HEIGHTS, QLD - 7.2%
- #37 CRANBROOK, QLD - 7.2%
- #38 WHITE ROCK, QLD - 7.2%
- #39 CARLTON, VIC - 7.1%
- #40 MOOROOPNA, VIC - 7.1%
- #41 SALISBURY, SA - 7.0%
- #42 MANOORA, QLD - 7.0%
- #43 MANILLA, NSW - 7.0%
- #44 OAKEY, QLD - 7.0%
- #45 MILDURA, VIC - 6.9%
- #46 ROMA, QLD - 6.9%
- #47 GRAFTON, NSW - 6.9%
- #48 AVENELL HEIGHTS, QLD - 6.9%
- #49 WEST KEMPSEY, NSW - 6.9%
- #50 CLAREMONT, TAS - 6.8%
- #51 REEDY CREEK, QLD - 6.8%
- #52 SMITHFIELD PLAINS, SA - 6.8%
- #53 HORSHAM, VIC - 6.8%
- #54 KINGAROY, QLD - 6.8%
- #55 MOE, VIC - 6.8%
- #56 COOTAMUNDRA, NSW - 6.8%
- #57 MUNNO PARA, SA - 6.7%
- #58 WHYALLA JENKINS, SA - 6.7%
- #59 ARMIDALE, NSW - 6.7%
- #60 CLIFTON BEACH, QLD - 6.7%
- #61 NEWNHAM, TAS - 6.7%
- #62 INVERELL, NSW - 6.7%
- #63 WESTDALE, NSW - 6.7%
- #64 SARINA, QLD - 6.6%
- #65 GEORGE TOWN, TAS - 6.6%
- #66 GLENORCHY, TAS - 6.6%
- #67 CRESTWOOD, NSW - 6.6%
- #68 LAVINGTON, NSW - 6.6%
- #69 THABEBAN, QLD - 6.6%
- #70 KEPNOCK, QLD - 6.6%
- #71 BEACONSFIELD, QLD - 6.6%
- #72 SHEPPARTON, VIC - 6.6%
- #73 GATTON, QLD - 6.6%
- #74 ELIZABETH VALE, SA - 6.5%
- #75 MORPHETT VALE, SA - 6.5%
- #76 HAMILTON, VIC - 6.5%
- #77 SLADE POINT, QLD - 6.5%
- #78 ARALUEN, NT - 6.5%
- #79 SOUTHPORT, QLD - 6.5%
- #80 LABRADOR, QLD - 6.5%
- #81 MOWBRAY, TAS - 6.5%
- #82 BENTLEY PARK, QLD - 6.5%
- #83 UPPER COOMERA, QLD - 6.5%
- #84 KIRWAN, QLD - 6.5%
- #85 EDMONTON, QLD - 6.5%
- #86 AITKENVALE, QLD - 6.5%
- #87 CHURCHILL, VIC - 6.5%
- #88 WODONGA, VIC - 6.5%
- #89 QUEANBEYAN EAST, NSW - 6.4%
- #90 FOREST HILL, NSW - 6.4%
- #91 SALE, VIC - 6.4%
- #92 MUDGEERABA, QLD - 6.4%
- #93 WEST WODONGA, VIC - 6.4%
- #94 BRENDALE, QLD - 6.4%
- #95 CURRUMBIN WATERS, QLD - 6.4%
- #96 NEWNHAM, TAS - 6.4%
- #97 HELENSVALE, QLD - 6.4%
- #98 ANDREWS FARM, SA - 6.4%
- #99 GUNGAHLIN, ACT - 6.4%
- #100 QUEANBEYAN, NSW - 6.4%
Source: Corelogic Top Rental Perfomers Report – September 2019. Suburbs ranked by gross rental yield from high to low. Purchase the full report from CoreLogic
Disclaimers
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
- If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
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