
	Latest News


	Building Information


	New Homes For Sale


	First Home Buyers


	Finance


	Moving to WA


	Land


	Property Investment


	Turn Equity into an Investment Portfolio


	Tax Free Benefits


	South Hedland best to invest


	Home Improvement


	Development Solutions


	Regional WA


	Environment

South Hedland best to invest

South Hedland best in Australia for property investors

Writer: Linda Cann
Source: perthnow.com.au
Date: 16 April 2009

SOUTH Hedland has been crowned the best town in the country for rental property investors after today topping a BRW report into positive gearing.

The Business Review Weekly report attributed the WA town 's rental success to nearby Port Hedland - Australia's biggest port by volume of tonnage and one of the busiest in the world.

Most of the residents of the WA town, which is 20km south of Port Hedland in the Pilbara, work at the port or in the iron ore industry and have driven demand for rental properties, resulting in soaring rent prices.

The report stated: "Times have been good for South Hedland investors, who could charge a whopping median weekly rent of $1250 last year. And the numbers are getting even better."

BRW property editor Ainslie Chandler said positive gearing � where rent payments cover the mortgage of a property - was likely in South Hedland because rental yields had reached more than 12 per cent for houses.

The figures, prepared by property research firm RP Data, showed Kambalda West had been another strong WA town for positive gearing opportunities last year.

But the decline of the resources boom last year had seen rental yields drop off after the closure of nearby mines

"It's a cautionary tale because since the highs of last year, some mining projects were shut down and a lot of rental properties came back on to the market."

The report used the example of Kambalda West, 55km south of Kalgoorlie, to warn investors to be wary of taking recent past performance as an indicator of the future.

Positive gearing opportunities were more likely in regional centres and outer Perth suburbs such as Gosnells, Armadale, Midland, Rockingham and Joondalup, according to REIWA president Rob Druitt.

"We have seen good capital growth and a shortage of rental property pushing up yields but I don't think there will be as much growth in the regions as the mining sector slows," he said.

"The old adage of buying property close to transport and amenities, major shopping centres, employment and major regional centres is still the way to go."

Other suburbs likely to have positive gearing opportunities were Highland Park and Molendinar of the Gold Coast and Sunshine Coast,

Broken Hill and Werris Creek in regional NSW, the Sydney areas of Lakemba, Punchbowl, Chipping Norton and Warwick Farm, and Bowen Basin in Queensland.

Creating Innovation, Building Value.

TR Homes is WA's largest supplier and leading residential builder of innovative and creative manufactured homes. Delivering quality homes across WA for over 35 years, TR Homes truly is your 'local' building company.

South Hedland best to invest

Related Links