Queensland is home to some of the most lucrative rentvesting suburbs for Australians looking to enter the property market.

Using data from Suburbtrends, a survey by Well Home Loans listed 30 suburbs across Australia that have ideal conditions for investors, 18 of which are in the Sunshine State.

According to the study, these Queensland suburbs are currently experiencing upward pressure on weekly rental and property prices.

Best Queensland Suburbs for Rentvesting

suburb

Median Yield

Median vacancy

Median sales price range

Cairns – North

5.2%

5.0%

$425,000 – $835,000

Cleveland – Stradbroke

4.5%

6.8%

$600,000 – $780,000

northern lakes

4.4%

7.1%

$475,000 – $620,000

capalaba

4.3%

5.2%

$545,000 – $720,000

redcliffe

4.3%

7.0%

$490,000 – $735,000

Nerang

4.2%

2.8%

$550,000 – $770,000

nambour

4.2%

2.9%

$495,000 – $910,000

Bald Hills – Everton Park

4.2%

5.5%

$560,000 – $852,000

Ormeau – Oxenford

4.0%

4.4%

$545,000 – $915,000

Sunshine Coast Hinterland

3.9%

3.5%

$571,000 – $880,000

closet

3.8%

8.5%

$600,000 – $826,000

Southport

4.2%

9.5%

$675,000 – $720,000

Buderim

4.0%

5.9%

$600,000 – $830,000

Wynnum – Manly

3.8%

6.9%

$630,000 – $855,000

The Gap – Enoggera

3.7%

9.1%

$645,000 – $830,000

caloundra

3.7%

6.3%

$515,000 – $920,000

The Hills District

3.7%

2.6%

$600,000 – $830,000

Gold Coast – North

3.6%

5.5%

$520,000 – $900,000

Data source: SuburbTrends

*Note: the above figures are for detached houses only.

The study states that it is unlikely that these areas will experience a substantial increase in new housing supply in the coming years.

This means that eventual demand for these suburbs would put further pressure on rents and prices, making them ideal investment locations.

The other 12 suburbs ideal for rent-vesting are scattered across other states:

New South Wales

Western Australia

  • Augusta – Margaret River – Busselton
  • Cockburn
  • Joondalup

Tasmania

South Australia

Northern Territory

Australian Capital Territory

Where is renting cheaper than buying?

The single markets in the inner and middle ring areas in Australia’s major capital cities, most of which have high vacancy rates, are good places to rent a property.

Given the large supply in these areas, landlords are forced to lower their rents.

The report listed 55 unit markets where it is better to rent than to buy:

Stands

Single markets where it is better to rent than to buy

New South Wales

  • parramatta
  • Canterbury
  • Blacktown
  • Newcastle
  • Tweed Valley
  • Richmond – Windsor
  • maroon
  • Rouse Hill – McGraths Hill
  • Strathfield – Burwood – Ashfield
  • Kogarah – Rockdale
  • Hurstville
  • Blacktown – North
  • Bringelly – Green Valley
  • Botany
  • Carlingford
  • Ryde – Hunters Hill
  • Pennant Hills – Epping
  • Marrickville-Sydenham-Petersham
  • Southern Highlands
  • Sutherland – Menai – Heathcote
  • Bankstown
  • Hornsby

Victoria

  • Melbourne City
  • Maribyrnong
  • Stonnington – West
  • Essendon
  • Brunswick – Coburg
  • dandenong
  • Casey – North
  • Colac – Corangamite
  • Frankston
  • Stonnington – East
  • Port Philip
  • Glen Eira
  • Yarra
  • Darebin – North
  • Hobsons Bay
  • Darebin – South
  • Keilor
  • Kingston
  • Surf Coast – Bellarine Peninsula
  • knox
  • Maroondah
  • Boorondara
  • banyule
  • Whitehorse – East
  • Moreland – North

Western Australia

Queensland

Tasmania

ACT

Source: Well Home Loans

Why should you consider rent vesting?

Rent vesting is a fast-growing strategy among emerging home buyers who are more likely to own a home.

The strategy involves buying an investment property in an affordable suburb while staying in lifestyle centers that are close to work.

Rentvesting allows tenants to build wealth with the investment properties they have purchased, which essentially works as “forced” savings.

The strategy also allows tenants to take advantage of tax breaks, as interest payments can be claimed as a deduction.

Other costs related to the management of the investment property are also tax deductible.

Well Home Loans CEO Scott Spender said a home should be considered an “economic asset.”

“You have to balance emotional concerns about liveability and safety with stubborn concerns about financial returns,” he said.

“That said, we certainly don’t tell first-time homebuyers where to buy and where not to buy. Nothing is guaranteed.

“Some of the single markets could be delivering strong returns, while some of those housing markets may be underperforming.”

Photo by City of Gold Coast on Unsplash.

Top Suburbs: Tuart Hill, Mt Gravatt, Willliamstown, Werribee, Bligh Park

Get help with your real estate investment

Need help finding the right loan for your investment?

When investing in real estate, it is important to ensure that you not only have the lowest available interest rate you can get, but also have the right loan characteristics for your needs.

Fill in a few details below and we’ll have a local mortgage broker contact you to find out what features or loan types are right for your needs. We even help with the paperwork. Moreover, an appointment is free.

We value your privacy and treat all your information seriously – you can view our privacy policy here



Source