Whyalla and Roxby Downs seeing 5% to 7% rental yields: HTW residential

Two of the best-known investor hot spots in regional South Australia are Whyalla and Roxby Downs.

Both have cyclical economies which are intrinsically linked to the supporting mining industries, according to a recent Herron Todd White (HTW) residential report. 

The valuation firm took a look at rental yields across the nation. 

Investors have been spooked from these locations in recent years as both markets entered a downward cycle.

"With the ability to enter the respective markets at historically low price points, investors are beginning to dip their toes back in.

"Yields of between 5% and 7% are common throughout both these regional centres," the valuation firm said. 

Achieving a weekly rental of $110, 13 Harvey Street, Whyalla Norrie (pictured below) sold for $79,000 in January this year representing a yield of 7.24%.

This property comprised a single level maisonette disposed as three bedrooms and one bathroom.

The report suggests property owners have options to increase yields by thinking outside the box.

Owner-occupiers can rent out the rear granny flat or the spare rooms which the kids have vacated.

Investors can privately manage their properties or offer their properties for rent on a per room basis.

Renting on a per room basis can be one of the greatest yield boosters and is most common for investors operating around university campuses.

"When owner-occupiers are looking for a dream home they lead with their hearts. Investors need to be more astute and lead with the head.

"Prior to making your property investment, invest in a calculator and a strategy that best suits you," the valuation firm said.