#20 Suburbs where investors should look for yield

What’s a yield? It’s a percentage based on the annual rent you’ll earn compared to the value of the property.

It’s a helpful way of assessing your cash flow. The higher the yield, the more rent you’ll be earning to pay off your mortgage. This means lower out-of-pocket costs.

It’s not uncommon to find that units have higher yields than houses. Conversely, houses may experience higher price growth than units over the long term. So striking the balance between cash flow and capital growth is important for each investor to consider.

But as mortgage interest rates have gone up, along with the cost of living, investors are no doubt keen to minimise out-of-pocket costs and healthy yields will be attractive.

Domain has published a list of suburbs within 10km of the CBD where rental yields are sitting at or above a healthy 5%.

Here on the north side that ranges from thriving inner city hubs like Fortitude Valley and Bowen Hills, and out to other north side favourites including Northgate, Clayfield, Enoggera, Kedron and Gordon Park.

Check out the top #20 suburbs with the highest rental yields for units within 10km of the CBD.

1. Brisbane City 5.78%
2. Spring Hill 5.58%
3. Murarrie 5.29%
4. Kangaroo Point 5.24%
5. Kelvin Grove 5.2%
6. Teneriffe 5.15%
7. Cannon Hill 5.13%
8. Northgate 5.12%
9. Fortitude Valley 5.11%
10. Gordon Park 5.09%
11. Enoggera 5.08%
12. Woolloongabba 5.08%
13. Fairfield 5.07%
14. Kedron 5.07%
15. Moorooka 5.06%
16. Corinda 5.03%
17. Bowen Hills 5.02%
18. Clayfield 5.02%
19. Toowong 4.98%
20. Greenslopes 4.96%

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