Best Rentals

Reporter: Damien Hansen

A recent survey's found one fifth of Australians will give up their dream of owning a home if interest rates hit between 8% and 9%. It's a dim outlook for potential first homebuyers but good news for owners of investment properties as more Australians are forced to rent for longer.

There's plenty of opportunities right around Australia for anybody, girls, boys, mums and dads to make some good money in property at the moment.

The reno kings, Geoff Doidge and Paul Eslick know a real estate bargain when they see one together they've amassed a property portfolio worth millions.

Now thousands of men and women follow them, renovating properties for profit.

It's no secret a good investment will pay for itself the key is finding property with good rental return.

Deputy Editor of Australian property investor magazine Matthew Liddy's already ticked the boxes coming up with the fast growth fifty suburbs for rental growth.

"No one has got a crystal ball where there rents will increase but certainly if you can tick most of the boxes things like location and close to facilities then that is going to give you a boost. It's a historic village about thirty minutes outside of Hobart so I guess you've got two factors there you've got a bit of a tree change location but it's within easy access of the city.

The top ten starting with New Norfolk in Tasmania, "They're also suffering from a housing shortage in New Norfolk so there is not a lot of property around.

In at number nine the once infamous Cabramatta in Sydney's south west and there's just a shortage of investors in the area there's been a lot of first home buyers coming into the area and that's taken up a lot of the properties that may have been rental properties and as a result there has really been a spike in demand.

Mt Hawthorn's a character suburb of Perth and that might be a bit of surprise on the list for some local people there because Perth has been struggling a little bit in terms of rents. Supply has maybe outstripped demand in quite a few areas but Mt Hawthorn seems to be one suburb that has performed despite that situation across the rest of the city.

Seaside suburbs of Warriewood on Sydney's northern beaches and Portsea in Victoria both attracting strong returns.

And it just seems to be a situation where its rents are catching up a bit with some of its neighbours who have performed strongly and the rents have been strong there and Warriewood has maybe fallen behind a little until now.

Portsea is a holiday location but they've got improving transport infrastructure going in around that area and better access to the city. People are seeing it more of a commuting option and therefore that is driving demand for property.

Suburbs close to mining hubs remain places where rent is high, Port Augusta west in South Australia comes in at number five and also there is some new development going in there which can drive up the median rent as a result of better quality homes.

On Queensland's Gold Coast Reedy Creek is the standout. There is a lot of new development happening at Reedy Creek and that's something that would be driving rents up because newer houses tend to rent for more than he older houses in the rest of the suburb.

Also Varsity Lakes has a new train station open there and that's probably given a bit of a boost to the local market in terms of people seeing it as an attractive option for living.

Buying investment properties near established infrastructure is vital to the success of any portfolio.

If you've got things like bus routes train lines new roads just improving access to other facilities and also employment growth then that means more people are going want to live in the area.

In at number two on the fast growth fifty with growth over 30 per cent last year is Edgecliffe in inner city Sydney.

There's been a real spike in demand for lifestyle locations and Edgecliff certainly fits into that its close to the harbour its close to suburbs like Double Bay there is great facilities around there in terms of shops and cafes and all those sort of lifestyle facilities.

The number one suburb on the API fast growth fifty is East Freemantle in Western Australia and that's just a suburb where there's been a fall off in demand over two thousand and eight and with the global financial crisis and the Perth Market struggling a little bit.

East Fremantle's rents rose an incredible 36.9% in 12 months.

Renters are going to find it tougher as rents rise and if you're in a location where rents are rising quickly obviously its good news for the landlord and the investor but renters will be feeling the pinch" says Michael.