The SA towns where investors can buy now and pocket hundreds a month in rent

There are several areas across the state where you can save thousands of dollars a year paying off your own mortgage instead of a landlord’s. Here’s where to look.

New data has found the SA towns where you can save money paying off your own mortgage instead of a landlord’s.

Property investors across 13 SA locations can now buy homes where the rents are higher than the mortgage costs, delivering almost $5000 a year in savings, data shows.

New PropTrack figures, released this week, reveal investors in Port Pirie could pocket up to $407 a month, or $4884 a year, after the average weekly rent rose by 9.76 per cent over the past year, to $305 a week.

Rental yields also jumped by around 10 per cent in Solomontown and Coober Pedy, meaning investors now save $335 and $258 a month, respectively.

Other SA localities where monthly savings of at least $100 has been achieved include, Peterborough, Whyalla, Whyalla Norrie, Port Augusta, Port Augusta West, Quorn and Port Pirie South.

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Sales specialist Matt Ganley, of Century 21 Pirie Properties, said positive cash flows were a result of affordable house prices – many homes in regional SA still sell under $200,000 – coupled with lack of rentals on the market.

“Our median sale price in Port Pirie, compared to a lot of other areas of a similar size, is less and therefore it helps our percentage return for investors,” he said.

“On top of that, like many other areas across the state, there’s been a big rental shortage which has driven up prices.

“Places like Port Pirie are also more sought after, compared to other regional locations, because investors can still borrow 95 per cent, meaning they get more properties for their money, which makes it appealing for them.”

Port Augusta’s 6 Rupert St is being sold with a price guide of $169,000. The sale even includes brand new furniture. Pic: realestate.com.au

Mick Gilbert, of Port Augusta First National, said demand for rental investments spiked during Covid.

“Ever since Covid we’ve been inundated from people in the eastern states, so buyers from Victoria, New South Wales and Queensland,” he said.

“That demand has been incredible and … we saw investment returns of up to 14 per cent during that time.

“Now, investors are chasing returns of at least eight per cent, so properties under $200,000 are very popular as you can ask for $340 to $350 a week in rent and that’s a real incentive.”

Port Pirie’s 73 Moresby Cres is being sold for $195,000. Pic: realestate.com.au

According to the data, the highest rental returns across Australia were for properties in the northwest and southern interior of Western Australia, including suburbs in the Port Hedland area, Karratha and Kalgoorlie.

Average rent exceeded average repayments in these locations by $500 to $1500 per month.

PropTrack director of economic research Cameron Kusher, said rising rents meant new investors could own properties for next to nothing as their rental income exceeded monthly mortgages.

This, he said, had left new landlords in a “cash flow positive” position.

“It’s likely these rental market conditions will persist for some time,” Mr Kusher said.