If you're wondering where to get the most bang for your buck when it comes to property investment, one destination you may want to consider is Darwin.
The Northern Territory capital could be a prime place to take out a investment home loan, as its rental yields are the highest of any Australian capital city.
According to the RP Data-Rismark June Hedonic Home Value Index, gross rental yields for houses and units in Darwin jumped by 6.2 per cent during the three months to June 30.
In comparison, Melbourne – which is the capital of Victoria and the second-largest city in Australia, had the weakest rental yields of any of the cities that were profiled. Houses here had a gross rental yield of 3.7 per cent, while the figure for units stood at 4.4 per cent.
Interestingly, Darwin fared less well in terms of overall property value, which slipped by 2.6 per cent during the quarter.
The median dwelling price in Darwin currently stands at $481,000 – which makes it among the more affordable capital cities to purchase property in.
Hobart topped the affordability chart – here, the median property prices is only $316,000 – while Sydney was unsurprisingly ranked as the most expensive place in the country to buy a home, with an average price of $580,000.
These figures are significant not only to investors, but those who are purchasing property for the first time. A common question among first-time buyers is: "How much can I borrow?"
By carefully researching the average property values of your preferred neighbourhoods, you will be able to enter into the home loan process armed with plenty of information.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.