Here are six high-growth suburbs where the rent pays your mortgage

first_imgTiana and Jordan Jahnke with their children, Isabelle, 5 and Aria, 10-months, were achieving a great return on their investment property in one of Brisbane’s hot investment suburbs. Pic Mark Cranitch.It’s the gold standard in real estate investment — suburbs where property values grow while tenants cover the mortgage repayments.Exclusive analysis of CoreLogic data by The Courier Mail identified every Greater Brisbane suburb where median rent returns exceeded an investor interest rate of 4.5 per cent. We then asked three local experts to pick the best addresses for future price growth. The numbers add up for Brisbane suburbs where tenants pay your mortgageWBP Group State Director Residential Valuations Queensland, Jonathan Millar, said high returns relieved financial pressure.“There’s a lot of costs involved in owning property,” Mr Millar said.“It’s very good in your strategy to try and find something that’s renting as well as it can.”Mr Millar said Kallangur and Mango Hill were his top choices for a balance between cash flow and capital growth.He said Kallangur’s low buy-in price plus steady value growth over the past decade should give investors confidence.“Kallangur is one of those suburbs where when I look at the median statistics and it really has shown some reasonable percentage growth over time,” he said.Mr Millar said Mango Hill also had solid returns and ongoing infrastructure would continue to bolster property values.“It not only has a little bit of above average gross rental, but it has some signs that it’s still got a long way to go in terms of value,” he said. Most of the top picks were north of the cityHot Property senior buyers’ agent, Zoran Solano said Boondall, Bracken Ridge and Acacia Ridge were his picks. Mr Solano encouraged investor to stay within a 15km radius of the Brisbane CBD and look for growth triggers like infrastructure and renovation.“Boondall is an area where we’re seeing a lot of gentrification,” Mr Solano said.“The older generation who bought and built their 70s and 80s brick homes are now moving on to other areas and fresh blood is coming in and renovating and value adding,” he said.Mr Solano said Bracken Ridge was affordable and had good proximity to facilities and the CBD.“There are also some pockets of Acacia Ridge that are zoned for potential development,” he said.“The area is primed for rejuvenation especially as we see the ripple effect take control.”More from newsMould, age, not enough to stop 17 bidders fighting for this home2 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor2 hours agoKaren Young agreed Acacia Ridge offered potential, but chose Kallangur and Bray Park as top prospects too.She saw affordability in Kallangur as the great driver.“It’s very affordable. It’s got a University going into Petrie right next door and it’s got its own facilities, but you’ve also got all the facilities at North Lakes just across the highway,” Ms Young said.“To me it’s just really well positioned and at a really good price point,” she said.“Bray Park I really like because it’s a little bit closer in to the city than Kallangur, you’ve got good facilities at Strathpine, you’re on the train line and there’s some really nice pockets of owner occupier property there,” she said.Ms Young also said the mix of old and new housing appealed to a broad range of investors.“I would go with something close to transport,” she said.“I always like a little bit of potential up my sleeve so you don’t want to pay at the top of the price point.“I also like big block sizes … and appropriately zoned property for some future development could be a little extra bonus to look for,” Ms Young said.Bowmaker Realty investment specialist, Tim Gall, said Kallangur was an excellent example of a location where investors can have both high yields and capital growth.“It’s 30 to 40 minutes in normal traffic to the CBD, it has rail and it has a lot of shopping amenities,” Mr Gall said.“Petrie has a new university that isn’t far away either, due in 2020.”“If you’re going to buy an older property you might need to do a bit of work to it … but on the other side if you’re looking at a newer property you’ve got a depreciation opportunity,” he said.When Tiana Jahnke and her husband, Jordan, bought their home in Kallangur, they were attracted to the price, facilities and access.“When we saw the prices and when that property came up it had a lot of potential. When we went to buy it was one of the lower price areas that were still close to everything,” Mrs Jahnke said.Mrs Jahnke said by doing a little extra work, they were able to create a homely feel that brought in a tenant.“We ripped the carpet up, did the kitchen and repainted everything.”She said based on a total outlay of $322,000, they were able to achieve $365 per week rent which equated to a 6.2 per cent gross return.“What we were getting rent wise, it was covering almost everything — we weren’t really out of pocket at all and it covered way more than the mortgage so that’s always a positive,” she said.“And the tenants have been so good, we’ve literally had no problems. It’s been amazing.”Follow Kieran Clair on Twitter at @kieranclair or Facebook on Kieran Clair — journolast_img

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