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Australia's best places for investors pursuing high rental income have been revealed - and they are all affordable for people on average incomes. Cairns (photo), in the tropical far north of Queensland, achieved three places in the top 10 of CoreLogic

REVEALED: the best places in Australia to buy an investment property and the neighborhoods that deliver the highest rental returns

  • CoreLogic has released a list of the 100 best places in Australia to achieve rental returns
  • Blackwater in central Queensland had the highest rental return of 11.7 percent
  • Broken Hill in the far west of New South Wales offered comparable high returns
  • Cairns in the far north of Queensland had three suburbs in the top 10 – all for units
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Australia's best places for investors pursuing high rental income have been revealed – and they are all affordable for people on average incomes.

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Blackwater in central Queensland was first in the top 100 list of CoreLogic, followed by Broken Hill in the far west of New South Wales.

Woree in Cairns became third, with the city in the tropical far north of Queensland with three places in the top 10.

Australia's best places for investors pursuing high rental income have been revealed - and they are all affordable for people on average incomes. Cairns (photo), in the tropical far north of Queensland, achieved three places in the top 10 of CoreLogic

Australia's best places for investors pursuing high rental income have been revealed – and they are all affordable for people on average incomes. Cairns (photo), in the tropical far north of Queensland, achieved three places in the top 10 of CoreLogic

Blackwater had Australia's highest rental yield of 11.7 percent – or a median lease of $ 260 per week.

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The city, 200 km west of Rockhampton, has an average house price of $ 122,165, following a 56.5 percent decline in the last five years.

Broken Hill, in the far west of New South Wales, came in second, with a rental return of 11.7 percent and a weekly median rent of $ 260 per week.

The average house prices in the silver city amount to $ 89,483, a decrease of 12.9 percent in the past five years.

Woree, a short drive southwest of downtown Cairns, generated revenues of 10.8 percent, as renters paid a median rent of $ 260 per week.

It has an average apartment price of $ 133,205, an increase of 14.4 percent in the past five years.

Queensland achieved 42 places on the top 100 list for revenue. Blackwater in central Queensland had the highest rental yield in Australia of 11.7 percent - or a median lease of $ 260 per week
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Queensland achieved 42 places on the top 100 list for revenue. Blackwater in central Queensland had the highest rental yield in Australia of 11.7 percent - or a median lease of $ 260 per week

Queensland achieved 42 places on the top 100 list for revenue. Blackwater in central Queensland had the highest rental yield in Australia of 11.7 percent – or a median lease of $ 260 per week

The top 10 of Australia for investors looking for high returns

1. Blackwater, central Queensland (houses)

2. Broken Hill, far west of New South Wales (houses)

3. Woree, near the center of Cairns in the far north of Queensland (units)

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4. Manunda, near Cairns (units)

5. Katanning, southern Western Australia (houses)

6. Cobar, central west NSW (houses)

7. Bordertown, Eastern South Australia (houses)

8. Bungalow, almost Cairns (units)

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9. Moranbah, central Queensland (houses)

10. Port Augusta, South Australia (houses)

Nearby Manunda, a short walk west of the city center, has rental income of 9.5 percent in a suburb with an average weekly rent of $ 250.

Bungalow within walking distance came at number 8.

Queensland achieved 42 places on the top 100 list for revenue.

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This was more than the combined total of real estate in New South Wales (17) and Victoria (15), where prices are generally higher.

Rental income represents the annual rent that a landlord receives as a percentage of the purchase price.

The higher the price, the lower the rental yield.

Conversely, a cheaper home with tenants yields higher rental income.

This means that the landlord can pay off the investment loan more easily, without negatively taxing the property, or claiming rental losses as a tax benefit.

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The CoreLogic report contains 63 suburbs where houses had a high rental return, and another 37 where units had the best returns.

It contained houses with median values ​​between $ 89,483 and $ 521,597 and units with a value of $ 133,205 to $ 395,577.

CoreLogic research analyst Cameron Kusher advised places with a vacancy rate of less than three percent and a return of more than five percent per year.

Broken Hill, in the far west of New South Wales, came in second, also with a rental return of 11.7 percent and a weekly median rent of $ 260 per week

Broken Hill, in the far west of New South Wales, came in second, also with a rental return of 11.7 percent and a weekly median rent of $ 260 per week

Broken Hill, in the far west of New South Wales, came in second, also with a rental return of 11.7 percent and a weekly median rent of $ 260 per week

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