Regional rental Yield oustrips Melbourne

28 THE BORDER MAIL Saturday March 05,2016

Regional Victorian rental yields outstrip Melbourne for investment boon
By ENZO RAIMONDO, REIV CEO

REGIONAL Victoria is proving to be a solid investment for property buyers with rental yields outstripping Mel-bourne in the three months to December 31. New REIV data shows the gross rental yield for a two-bedroom house in regional Victoria was 5.2 per cent in the December quarter — significantly higher than the 2.9 per cent recorded in metropolitan Melbourne.

Three and four beedroom homes also delivered solid yields at 4.8 and 4.2 per cent respectively. By comparison, the same sized homes in Melbourne is vital for financial planning. The ideal combination is a low purchase price and a high weekly rental, giving a high yield to an investor. Yield is often mentioned in relation to property investment but many of those buying for investment look at the weekly rental income rather than the potential yield. Pay too much for the property and, even if it commands a healthy rent and shows long term capital growth, the return on investment -will be lower. The REIV calculates gross rental yields for the state every three months with the latest data showing regional towns dominating the top 20 yields across the state. With a median house price of $152,500 and a median weekly rent of $230, three-bedroom homes in Morwell delivered regional Victoria's highest yield of 7.8 per cent. Three-bedroom properties also re-cording high yields included Sheppar-ton, at 6.7 per cent; Bairnsdale, 6.5 per cent; Mildura, 6.4 per cent; ments in weekly median rents and property price increases both have a significant bearing on this.

For more information on yields, visit the REIV website at www.reiv.com.au/property-data.aspx