New REIV data shows homes in regional Victoria produced some of the state’s strongest returns in the last three months of 2016.
Two-bedroom houses in regional Victoria were among the best performing for investors, delivering a gross rental yield of 5.3 per cent in the December quarter, higher than any other property type in metropolitan Melbourne.
Towns in the Gippsland area produced some of the state’s highest returns for two-bedroom homes, with Morwell leading the way with a gross rental yield of 8.1 per cent.
In comparison, in the sought-after Melbourne suburb of, the gross rental yield was just 2 per cent on a two-bedroom house. Despite a weekly median rental of $500, the significant median price of $1.3 million held down the yield.
Three-bedroom homes also delivered solid returns for investors across the state at 4.8 per cent in the December quarter. Red Cliffs, near Mildura, recorded one of the highest returns for this property type, at 6.7 per cent.