Regional SA Property Market Update October 2019
Herron Todd White, Property and Finance Reporter
First published 10 October 2019, 05:46 PM
Two of the best-known investor hot spots in regional South Australia are Whyalla and Roxby Downs.
Both have cyclical economies which are intrinsically linked to the supporting mining industries. Investors have been spooked from these locations in recent years as both markets entered a downward cycle. With the ability to enter the respective markets at historically low price points, investors are beginning to dip their toes back in. Yields of between 5% and 7% are common throughout both these regional centres. Achieving a weekly rental of $110, 13 Harvey Street, Whyalla Norrie sold for $79,000 in January this year representing a yield of 7.24%. This property comprised a single level maisonette disposed as three bedrooms and one bathroom.
Property owners have options to increase yields by thinking outside the box. Owner-occupiers can rent out the rear granny flat or the spare rooms which the kids have vacated. Investors can privately manage their properties or offer their properties for rent on a per room basis. Renting on a per room basis can be one of the greatest yield boosters and is most common for investors operating around university campuses.
When owner-occupiers are looking for a dream home they lead with their hearts. Investors need to be more astute and lead with the head. Prior to making your property investment, invest in a calculator and a strategy that best suits you.
