Savvy investors looking for a bargain buy that will still make them money should consider property in SA’s outback.
Many Coober Pedy houses are selling at a discounted rate but still generating a solid income if rented out, new data reveals.
According to latest PropTrack figures, vendors are accepting offers around 13.7 per cent below their original asking price.
Meanwhile, they were receiving the highest rent returns in the country, with a median rental yield of 17.39 per cent – that’s up on the 15.43 per cent reported in July.
The median house price in Coober Pedy is just $76,250.
Coober Pedy’s rental yield is more than 17 per cent, latest PropTrack data shows. Image: Hipcamp.
By comparison, vendors across Greater Adelaide generally aren’t needing to discount their houses or units to be able to sell them, while rental yields are sitting at 3.65 per cent and 4.53 per cent respectively.
The median house price for Adelaide is $855,000, while the median unit price is $597,000.
Andrews Property director Warren Andrews, who has an office in Coober Pedy, said there were many benefits to investing in the outback town, which is about 850km from Adelaide.
“The investors are winning on almost every front in Coober Pedy at the moment,” he said.
“It’s an interesting landscape in that what we’ve seen probably for a year or so is external or interstate investors buying property up there because it’s affordable or cheap.
“They’re actually spending the money on properties to do them up.
“They’re getting good returns, not just on their original investment but on their improvements as well.”
The property at Lot 400 Medway Drive is on the market for $39,000.
Mr Andrews said there had been a wave of cheaper homes hit the market in the past six months, which happened occasionally.
He said it was mostly locals who were selling, many of which were happy to let their homes go for a cheaper price if it meant offloading them quickly because they were struggling financially for various reasons.
With strong demand for limited rentals on the market – just three, according to realestate.com.au – Mr Andrews said it wasn’t surprising yields were so high.
Andrews Property’s Misty Mance said in July after selling the vandalised property at Lot 527 Van Brugge St that cheap properties in the area weren’t desirable to every buyer but they were a great opportunity for some.
“It does give an opportunity for a first-home buyer or for others that can’t get into the market,’’ she said at the time.
“The condition of them doesn’t worry some people because it’s a chance to own their own home that they might not otherwise have.
“If those opportunities weren’t there, they may not have anywhere else to go.’’
The property at Lot 527 Van Brugge St recently sold.
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