Various locations across regional Victoria are providing solid rental dividends for investors.
New data from the Real Estate Institute of Victoria (REIV) shows rental yields in regional Victoria outperformed metropolitan Melbourne in the year to 30 June.
Two-bedroom houses experienced the largest difference in yields, with regional Victoria delivering a 5.1 per cent return for this property type — significantly higher than the 2.8 per cent recorded in metropolitan Melbourne.
With a median house price of $175,500 and a weekly median rent of $250, three-bedroom houses in Moe delivered regional Victoria’s highest yield in the year to 30 June at 7.4 per cent.
Other towns recording high yields for the same property type include Bairnsdale, at 6.4 per cent; Morwell, at 6.2 per cent; and Benalla and Echuca, both at 6 per cent.
Other high-yielding locations, according to the REIV data, include three-bedroom homes in Mildura (5.9 per cent), Corio (5.8 per cent), Warrnambool (5.8 per cent), Hamilton (5.7 per cent), Wodonga (5.7 per cent) and Sebastopol (5.6 per cent).
The REIV noted that yield was an important consideration for property investors, and often helps form their decisions about location — but cautioned high yields were “no guarantee a property in a particular area will continue to perform well, as movements in weekly median rents and property price have a bearing on the yield”.
“However, knowing the gross rental yield provides a useful guideline as to which areas and property types are seeing yield growth — and in turn this can assist investors when deciding where to buy,” the REIV said.