Geraldton makes top 10 Hotspotting list for best locations to buy investment property in Australia

Geraldton is one of the top 10 locations in Australia for investors, according to a new report. The Mid West city is one of three WA locations listed in the Hotspotting National Top 10 Positive Cashflow Hotspots report, which points towards major regional locations leading the pack for investors looking to meet the intersection of affordability, cash flow and capital growth. It reported Geraldton’s rental yield at 7 per cent, and its rental vacancy rate of 0.4 per cent in January, with a median house price of $318,000. In February, the Real Estate Institute of WA reported Geraldton’s vacancy rate to be closer to 0.9 per cent, with the current vacancy rate around one per cent. Hotspotting general manager Tim Graham said: “Geraldton is the largest city north of Perth and has experienced stellar economic growth over recent years — partly due to its affordable property prices. “It is also the commercial hub for the region and is home to WA’s second largest port, which are both factors that continue to underpin its local economy.” While its annual growth had been benign over the past year, the future prospects for Geraldton remained strong, Mr Graham said. “It remains a major mining centre for the wider region, plus, there is a high-speed train proposed to Perth with its population also forecast to soar by more than 60 per cent in the next two decades,” he said. The report looks to key criteria to source the top suburbs or towns across Australia with rental yields of at least 5 per cent. Assessing strong and diverse economies, market sizes, populations, infrastructure, rental markets, employment opportunities, capital growth, affordability, and risk are all taken in to account. Locations in Queensland dominated the list including Glen Eden, Bundaberg North, Berserker and Yorkeys Knob. Geraldton, Orelia in Kwinana and Withers in Bunbury were the three WA locations to be named in the report. Hotspotting director Terry Ryder said regional areas were becoming locations of choice for educated investors looking for cash flow and capital growth. “Cash flow has become increasingly important over the past two years, given the much higher mortgage repayments in play,” he said. “But strong rental yields should never be the solitary reason to invest in any location or dwelling. Rather, it is imperative that investors seek out areas that also offer capital growth prospects, often due to their booming local economies across a diverse range of industries.” Activewest principal licensee Phil Sorgiovanni said the key to driving more investment in Geraldton was looking to boosting livability. “Commercial investment and external money being invested is what leads to livability,” he said. “As a region we need to be more receptive and being incentivising external investment into commercial on a larger scale, focusing on vibrancy.” Mr Sorgiovanni added increased investment in Geraldton meant more rental homes would enter the market, which would help ease pressure. Hospotting National Top 10 Positive Cashflow Hotspots: Houses West Tamworth – regional NSW Glen Eden – regional Queensland Bundaberg North – regional Queensland Berserker – regional Queensland Elizabeth Downs – North Adelaide Orelia – Kwinana, Perth Geraldton – regional WA Withers (Bunbury) — regional WA Units Bowen Hills – Brisbane Yorkeys Knob – regional Queensland