17 June, 2021
Kilcoy number one town for investors
STRONG capital gains, record low interest rates and a volatile stock market are once again making investing in bricks and mortar irresistible for those who can and according to statistics released by realestate.com the area with the greatest rental yields for houses in all of greater Brisbane was Kilcoy.
Kilcoy experiences consistently high rental demand due to the local meat works, Kilcoy Global Foods.
Thanks to the growth of this beef exporting business and its employment of mostly international workers, the demand for rental housing in the area has soared.
The rental market is so competitive that if the property wasn’t leased already prior to the sale we can have it tenanted in under a week at record rental prices.
Several properties managed by Ray White Kilcoy are returning close to 10 per cent rental yields. It is now to the point where we cannot satisfy this demand, there is a massive rental shortage.
Long-term international workers are now bringing their families into the country which has created even higher demand as these tenants move away from their current share house set ups.
Ray White Kilcoy are currently working closely with several local business and land owners to create new higher density housing opportunities on some existing sites to help meet the soaring demand.
• Average weekly rent: $375.00 source realestate.com.au
• Average rental yield: 7.6 per cent* based on Ray White Kilcoy management folio
• Increase in rental yield: plus 4.9 per cent over the past 12 months. Source PrinceFinder.
New landlords and landlords wanting to expand their management portfolios are in a brilliant position with banks cutting interest rates for investors. Despite the risks that could arise if investors pile back into property, adding further fuel to a very hot market, APRA and the Reserve Bank have shown no urgency to cool house prices.
With predictions of house prices continuing to rise another 20-30 per cent by the end of 2022 there has never been a better time to invest in Kilcoy.