Why this very ordinary cottage in a small country town is Australia’s most successful rental
- Fibro home in regional WA charges $500 a week
- Katanning saw its rent increase by 47 per cent
- The home rental yield is 15 percent
A small working town in South Western Australia has seen the highest rise in rents in Australia, with tiny cottages now earning up to $500 a week.
Landlords in Cattanning, about 280km southeast of Perth, charge nearly three times the average rent in the state capital due to the influx of workers.
The very limited market has seen homes like the vibro cottage at 13 Beeck St, located on the edge of the small town, yield 15 per cent – which may be the highest in Australia.
Rental yield calculates the difference between the income generated from renting a property and the total cost of the investment. The higher the percentage, the higher the return.
Average rental yields in Sydney and Melbourne are around 3.5 per cent.
A tiny vibro house (above) on the edge of a working town in Washington has a rental yield of 15 per cent – possibly the highest in Australia
The house at 13 Beeck St in Katanning (above) is available for rent for $500 a week even though the owner bought it for just $125,000 last year.
The owner of 13 Beeck St has managed to charge renters $500 a week, despite buying the house for just $125,000 last year.
The average cost of rentals in Katanning jumped 47 percent from last year at an average cost of $375 per week, according to data from PropTrack.
Professional real estate agent Cameron Pulteau said the market has been stirred by workers at nearby Gunmen, CBH Grains, and wind farms looking for housing, the West reports.
He claims that some companies are offering to double the rental rates just to get a house for the workers.
Mr Polto said the Vibro home at 13 Beeck St had the highest yield he had seen in 23 years.
Tenants moved in and it was re-letted on Friday. I almost fell off a chair.”
There are currently no properties available for rent in Katanning.
Hotels and motels are filling up, too—in part by longtime locals pushed out of the housing market.
Katanning op volunteer Brenda Horilock said she knows an older woman who has been forced to surf for months because of the high rent.
Long-term locals have been evicted from their rents in Katanning (above) as workers from nearby locations have raised prices by 47 per cent
Rents in Cattanning are up 47 percent from last year with large numbers of workers from nearby locations snatching up any property that appears on the limited market (pictured, the home at 13 Peak Street)
A fiber home (above) in Cattanning returns a rental yield of 15 per cent while properties in Sydney and Melbourne fetch an average of 3.5 per cent
She added that the operation store has seen a jump in the number of customers as more people are looking for ways to save money and overcome the cost of living crisis.
Bottle shop worker Rebecca Rumbold said she was staying at a hotel while waiting to rent an affordable property.
Other small towns around Washington also saw some of the highest median rent jumps in Australia when prices are compared to this time last year.
Wongan Hills, 175km northeast of Perth, saw a 35 percent increase, while the coastal city of Busselton in the south of the state rose 33 percent to $550 a week.