Are these really Australia’s 10 best rental suburbs?

A new report from OnTheHouse has released new predictions data presenting the top 10 suburbs nationwide with opportunities for residential buyers.

Unsurprisingly, New South Wales dominated the top 10 list, while Victoria didn't scrape in a single mention.

Based on rental and capital returns, outer city regions were found to provide the best investment opportunities, explained OnTheHouse consulting analyst John Edwards.

“Buying in a regional area might not be for everyone but with strong predicted growth and high rental yields, it’s certainly an option to consider. With more expensive areas, such as Sydney, outer city regions can be much more affordable – pair that with strong growth and it could be a good fit for investors wanting to get good rental returns and capital growth over time," he said.

To come up with the list they looked at five year capital growth predictions, industry surroundings, confidence ratings and employment opportunities.

“Investors should be looking for locations that have good employment opportunities, education options, are well connected to transport and have planned developments in the area that will attract the population. The latest Best Rent Report highlights 58 areas around Australia that meet this criteria, each offering returns of better than 10% per annum," he said.

He also urged investors to look at data in conjunction with local knowledge.

“Our research draws on industry and environmental surroundings and employment opportunities, which will influence property prices. These areas are the suburbs we think will perform well. However, it’s crucial that buyers do their own personal research and build on this statistical information.”

Turn over page for the top 10 list.

Source: OnTheHouse.com.au. Click to open in new window.

In total, 58 suburbs made the Best Rent Report.

Queensland’s Wynnum was one of those which also made the list as one that was flying under the radar but with growth fundamentals.

Wynnum was named one of Australia’s best more quiet achievers, with capital growth in the past 12 months of 3.13%, and forecasts that over the next five years this will look more like 7.56% per annum.

Harcourts Green Living in Wynnum principal David Green said that demand has been coming in from interstate investors and families who want to rent.

“Wynnum is a strong growth market for investors looking to expand their property portfolio, located just 16 kilometres to the Brisbane CBD, 20 minutes to the domestic and international airport and less than an hour to the surf beaches of the Gold Coast,” he said.

“Our property managers who have worked in the Bayside for decades are experiencing a high demand for rental properties from young families moving to the area, as well as investors from Sydney and Melbourne.”

The area is well-serviced by a train line running through its centre, including Wynnum Station, Wynnum North Station and Wynnum Central Station.

Within the boundaries on the area include parks, a police station, a school, a golf club, shops and the area’s own RSL club.

It appears property pundits and individual investors have been discussing the area for years – with forums including threads about buying in the suburb for many years. Peter Koulizos has previously suggested Wynnum for growth, and Australian Property Investor magazine tipped the area last year.

According to SQM Research, the vacancy rate for the area is 1.8%.

Wynnum West previously had a mention in RP Data's Buy vs Rent report in December 2012 as one of the few places in Brisbane where it was, in fact, better to buy when looking at overall financial outcomes.

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