IN addition to the country’s highest capital city rental yields, new research has also shown that Darwin is home to the nation’s top cash-flow suburb.
According to property analysts ‘Propertyology’, Darwin’s Northern suburb of Karama is Australia’s best capital city cash flow suburb.
With a median house price of only $392,000, Propertyology head of research Simon Pressley said an investment property in Karama would generate a positive cash flow of $3600 per year if purchased with a 20 per cent deposit or $1700 per year using 10 per cent.
“Even with a low 10 per cent deposit, the typical property is putting money back into the owner’s pocket each year,” he said.
“While Darwin’s market has been an underperformer over the past three years, investors won’t be as concerned if they own a property that’s actually supplementing their income.”
Mr Pressley said Darwin’s top five cash flow suburbs included Karama, Muirhead, Malak, Wagaman and Virginia.
“These suburbs stood out primarily due to the ratio between the median rent and the median house price,” he explained.
“Although median house prices have dropped by about 12 per cent over the past three years, rents haven’t crashed in Darwin, so there are far more opportunities for investors to purchase property where cash flow is king.”
REINT chief executive officer Quentin Kilian shared similar views to Mr Pressley and said there were plenty of investment opportunities in the Top End.
“For at least the last 12 years, rental yields in Darwin have been at or above the 5 per cent mark. When you compare that to rental yields in other capital cities such as Sydney or Melbourne which waver between 2 to 4 percent, it is clear that the NT, and Darwin in particular, delivers investment returns well above those of the other capital cities, and has done so, consistently, for more than a decade,” he said.
For investors looking for a quick turnaround on the lower end of the market, Ms Kilian said there was plenty of stock in areas such as Karama, Tiwi, Malak, Moulden, Gray, Farrar, Bellamack, Gunn and Nightcliff.
“There’s certainly plenty of choice for investors and prices are the best we have seen in the last two decades,” he added.
Rachel Coughlan is one of many Territorians who has purchased property in Karama due to its affordability and investment benefits.
“I have noticed many buyers moving to the suburb – lots of residents I talk to say that they really like living in Karama with its many amenities,” she said.
Source: NT News