HIGH YIELD: Ray White Maryborough principal Guy Meredith agrees the Heritage City is the place to invest.
HIGH YIELD: Ray White Maryborough principal Guy Meredith agrees the Heritage City is the place to invest. Cody Fox

M'boro a top city for real estate investors

MARYBOROUGH has been highlighted as one of the highest-yielding areas for investors in Australia.

It was featured on a list complied by national real estate publication, Your Investment Property.

Using data from researchers at Real Estate Investar and cross checking against ABS/Census figures and demographic data, editor of Your Investment Property Sarah Megginson said Maryborough was included on the list of 141 high-yield suburbs for the publication's April edition.

"A few stand out reasons why Maryborough made the cut include affordability, as the median dwelling price is just $219,000, and a strong rental market where the median rent is sitting at $260," she said.

"This translates to a high yield of 6.17 per cent, with mortgages currently sitting below 4 per cent - there is plenty of profit potential for investors.

"The 12-month growth in rental yields was 1.95 per cent, meaning their is scope for even greater returns. Furthermore, vacancy rates are low, falling from 1.5 per cent to just 1.2 per cent.

"All of this translates to an appealing investment opportunity for investors, who may consider taking the positive cash flow the property generates and funnelling it into the mortgage - thereby accelerating the mortgage pay down, creating equity, and moving towards full ownership of the asset, so you can enjoy the full rental profits."

Maryborough Ray White principal Guy Meredith said his business numbers strongly resembled YIP's data and in some places painted an even more attractive picture for investors.

"Maryborough is a good return on investment because it is affordable and low risk," he said.

"For example we recently sold a house for $180,000 with the owners to inherit the current $250 per week rent which means they will get 7 per cent yield.

"The good thing about it being low risk, if they do get into trouble it is easy to get out and sell because these sorts of properties are our bread and butter.

"At the start of March Maryborough Ray White had a zero per cent vacancy rate which has now risen to one per cent. That is the best vacancy in more than 10 years.

"We have been finding buyer interest from the southern markets in Brisbane and the Sunshine Coast and even Melbourne and Sydney, and when they do buy, they buy more than one investment property.

"There is great value for money here."