Property Investment Hot Spot - Todays Newcastle Herald confirms what we already know ... Cessnock is the nations leading property investment locality. The article is reproduced below. If you would like any more information on Investment Property options in our area then please contact the Sales Team at Sternbecks Real Estate on 4990 7000. Cessnock tops for property investors CESSNOCK has beaten Australia’s most glamorous holiday spots as the best place to buy an investment house. The average rental yield from a house in the Hunter’s peak winegrowing region was 1 per cent better than that of Byron Bay and 2 per cent better than Port Douglas, Airlie Beach and the major capital cities. Yield is how much rent you are getting compared to the value of your house, so a cheap house with a reasonable rent would get a better return than a more expensive one with the same rent. For example, the median house price in central Sydney is $1.75 million but with an average rent of $1120 a week it only has a return of 3.33 per cent. Cessnock’s return was twice as good at 6.3 per cent, thanks to its low median house price. Mortgage comparison website finder.au used the annual Tripadvisor list of top 10 traveller destinations to determine which spots were the best to buy an investment property. Michelle Hutchison, from finder.au , said it was important to look beyond the more popular, and expensive, places when investing. ‘‘It’s important to take off your holiday glasses when assessing potential investment properties,’’ she said. ‘‘It’s always nice to imagine what it would be like to own an investment property at your favourite holiday spot, but our findings revealed there can be a big difference between the value of return you can receive for the most popular holiday destinations.’’ Ms Hutchison said housing investors should be careful when deciding whether to rent out their property to residents or as holiday accommodation. ‘‘It really does depend on the property and it’s good to get advice on what kind of yields you can expect and what type of rents you can charge,’’ she said. The best return from flats for a second year in a row was in Port Douglas, yielding 7.77 per cent, almost 1 per cent better than Darwin, which came in second. Cessnock came in at ninth place with a yield of 5.81 per cent. AAP
Posted on: Tue, 24 Jun 2014 03:21:29 +0000
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