REVEALED: Suburb named prime hotspot to invest in property

Local is where the best rental investment buys are according to report

A rental investment hot spot - Tewantin fits the bill. Picture: Picasa

TEWANTIN has been named among the nation's best value places for "rentvestment" opportunities for properties under $600,000

According to "money saving zone" service Mozo, rentvesting, or investment rental properties, now accounts for a third of all Australian property investments, accounting for $202 billion in loans.

Mozo said Tewantin had seen annual 4.7% rental yield for median priced housing of $517,000 which had increased in price by 10% and the vacancy rate had dropped to 1.2%, down by 31% from 1.7%.

Its rental yield of all the national hotspots is only bettered by the Launceston suburb of Trevallyn in Tasmania which came in at 5.2%. Mozo property expert Steve Jovcevski said that when looking for an investment property, there were a few key factors to assess.

"Vacancy rates will provide you with an idea of rental demand.

"Be sure to crunch the numbers on your mortgage versus the rental returns in the suburb you are looking to invest in, as ideally, the rent will cover the majority of the mortgage."

Mozo's Tewantin assessment noted the marked drop in vacancy rates and housing stock in the past 12 months.

"It is home to many locals who own businesses or work in Noosa and local and international tourism continues to boom in the area. Located only five minutes walk from Noosa Marina, it is in a prime location while remaining affordable as an investment."

Mr Jovcevski said the housing market had undergone dramatic change with young people finding it increasingly unattainable to purchase their own home.