Sydney Suburbs with High Rental Yield

With changes to the interest rates, we are seeing changes to the rental market across Sydney and Australia. This might offer a good opportunity for those looking for high rental yield properties in Sydney, more specifically, the inner city suburbs such as Waterloo.

The inner city suburbs can be an excellent location to discover high rental yields, as you may already know if you’re a property investor or someone interested in investing in the Sydney real estate market. 

One suburb that is a perfect example of this is Waterloo, as it is becoming a more and more popular alternative for both renters and investors due to its near proximity to the City, great public transportation links, and a thriving arts and cultural scene.

Whether you’re a seasoned investor or just starting out, this article will provide you with valuable insights and information to help you make informed decisions about your investment portfolio in the dynamic Sydney property market by better understanding the high rental yield of inner city suburbs.

What is a High Rental Yield Suburb?

A suburb with a high rental yield is one where the rental revenue is comparatively high when compared to the cost of the property. These suburbs typically have higher rents in relation to the property’s value, which in turn results in higher rental returns. 

The average rental yield in NSW is around 2.7% so consider the following example.

If you purchase a property, for $500,000 with a rental yield above 2.7, let’s say 5% yield, you would receive $25,000 in annual rent from it – thus, making it a high rental yield suburb.

Where Can You Find High Rental Yield Suburbs?

Since rental yields can vary widely depending on location, property type, and other considerations, there is no universally applicable answer. However there are certain broad patterns to be aware of.

First off, because to their proximity to amenities and employment possibilities, inner-city suburbs sometimes offer greater rental yields. However, these suburbs might also be more challenging to buy in, given the benefits it providers to owners and renters.

Also capable of providing high rental yields are regional locations.

The level of rental property demand in the area is crucial to take into account, though, since it may affect your capacity to attract tenants. It is important to do your homework and hunt for suburbs with a healthy rental market. Search for neighbourhoods with a variety of rental units, a low vacancy rate, and significant rental demand (i.e. not just high-density apartment buildings). 

All of these elements can help to provide a steady income stream and reduce risk.

A great example of an inner-city suburb that has a healthy and high rental yield is Waterloo. Here is a quick overview of the property market in Waterloo.

Housing

The majority of the properties in Waterloo are apartments and the remaining are typically semi-detached homes, terraces or townhouses.

Rental Market

The median weekly rent for a Studio is $680 per week, 1 bedroom apartment is $800, 2-bedroom apartment is $1,200, while a 3-bedroom apartment will cost $1,700 per week.

The vacancy rate in Waterloo is a low 1.76% and offers an estimated rental yield of 4.4% a year.

Demand

Due to the suburb’s close proximity to the city and its stylish lifestyle, there is a high demand for real estate in Waterloo, and there is competition on the market.

Amenities

There are several different amenities in Waterloo, including cafes, restaurants, parks, and stores. Several schools and child care facilities are also located in the neighbourhood.

Transportation

Waterloo is well-connected to the rest of Sydney via public transport, with several bus routes and Green Square station nearby.

Development

The suburb of Waterloo is currently going through a tremendous makeover with a number of significant developments ongoing. New residential complexes and community amenities like a library, community centre, public park and state of the art apartment buildings are part of this development.

The Botany Waterloo Project

The Botany Waterloo is a recent apartment development by HYG that offers a selection of 58 stunning new designer apartments that have been unveiled as part of Stage 1 in one of Sydney’s hippest fashion, food and lifestyle destinations.

Raising the bar for designer living, The Botany, Waterloo commands the street front with its warm brick exterior, wooden panels and lush greenery. It’s where industrial edginess meets refined comfort, from the outside, in.

Some key attributes of The Botany Waterloo:

• Intimacy meets spacious comfort with just 3 – 4 apartments per floor
• Sun-drenched timber floors, internal laundries, designer kitchens, and generous glass doors that open onto spacious balconies
• An unrivalled design by award-winning architecture firm Cottee Parker with interiors from world-renowned DKO Architects
• Exclusive amenities such as an expansive rooftop terrace with outdoor BBQ areas
• Stylishly designed common area embracing the Waterloo suburb, influenced by local café culture and industrial warehouses
• Only a stone’s throw to Green Square station (350m) and approx. 7 minutes to the new Waterloo Metro
• The Botany Waterloo is located only 12 minutes walk from the renowned Gunyama Park Aquatic and Recreation Centre

In conclusion, real estate investors may find it profitable to invest in inner-city suburbs with high rental yields, such as Waterloo. A rising demand for urban living and the construction of contemporary apartment buildings like HYG‘s The Botany Waterloo offer hope for excellent rental yields and capital appreciation.

The Botany Waterloo offers an exceptional opportunity to invest in a state-of-the-art apartment complex with first-rate amenities and a superb location. Renters looking for convenience and accessibility will find it to be an appealing choice given its close proximity to the city centre, public transportation, and major job centres.

The Botany Waterloo is also a wise choice for investors due to its ability to create a consistent rental income while reaping the rewards of long-term capital growth thanks to its high rental yield of about 4-5%.

For those wishing to enter the inner-city real estate market or add to their current portfolio, Waterloo and The Botany Waterloo apartments provide an excellent investment option. It merits consideration as part of your investment strategy due to the high rental demand and good growth possibilities.