Positive gearing suburbs in Australia’s hottest property market
Strong rents easily cover repayments in 57 suburbs of Western Australia
Strong rents easily cover repayments in 57 suburbs of Western Australia
Western Australia remains Australia’s strongest property market, with home values up 23.2% to a median price of $751,000 in Perth and 14.9% to a median of $528,000 in regional Western Australia over the year to August. This is the highest rate of annual capital growth among Australia’s capital cities and regional areas, according to Proptrack data.
Rents have also risen more in Western Australia than anywhere else. The latest available Proptrack data covering the March quarter shows a 15.5% annual increase in rents in Perth and a 14.3% uplift in regional Western Australia. The state has also seen the strongest growth in property investment lending as investors from all over the country seek to buy in the booming market. Proptrack economic analyst Megan Lieu said investor lending in Western Australia was 48% higher in the June quarter compared to the same period last year, according to Australian Bureau of Statistics data.
Rapid increases in weekly rents have led to more suburbs across the country offering positive gearing opportunities for investors. Proptrack has identified 140 positive gearing suburbs nationwide where rental returns entirely cover the investment loan repayments for investors.
“Rent growth has … outpaced home price growth over the last 12 months, making conditions increasingly favourable for investors,” Ms Lieu said. “While many of them are benefiting from the current market, those with properties in select suburbs are not only seeing their rental income cover their mortgage but also deliver positive cash flow.”
The data shows Western Australia has 57 positive gearing suburbs, which is the most of any state and territory. Examples of these suburbs are listed below. The data assumes a 30-year loan at an 80% loan-to-value ratio (LVR) with an interest rate of 6.52%.
Baynton is in the Pilbara mining region and is the best positive gearing suburb in the state. Investors can cover their mortgage repayments with $2,100 per month to spare, according to Proptrack data. A typical house in Baynton costs a median of $682,500 and fetches $5,600 per month in rent. This is more than enough to cover the monthly loan repayment of $3,458.
Kambalda West is in the Goldfields-Esperance mining region of Western Australia. A typical house costs $180,000 and rents for $1,520 per month. The mortgage costs $912 per month, which gives investors surplus cash of $607 per month to help cover other expenses like council and water rates.
Port Hedland is the second largest town in the Pilbara mining region and another strong positive gearing suburb. The median house price is $730,000 and the rental return is $4,900 per month. The investment loan repayment costs $3,698 per month, leaving the investor with $1,201 per month in their pocket. Investors on a lower budget can buy an apartment for a median of $474,396, which will rent for $3,200 per month and easily cover the mortgage of $2,403 per month.
In the Broome region of Western Australia, Cable Beach sits on a 22km stretch of white sandy coastline along the Indian Ocean. The suburb was named after a telegraph cable that was laid between Broome and Java in 1889. Cable Beach houses have a median price tag of $670,000 and rent for $3,930 per month which is more than enough to cover the loan repayment of $3,394 per month.
Investors can purchase a unit for a median of $465,000 and rent it out for $2,480 per month in Perth CBD. While the loan repayment gobbles up most of this, costing $2,356 per month, it is a notable rarity for a CBD suburb in the centre of an Australian capital city to deliver positive gearing.
Mosman Park is an affluent suburb along the Swan River in Perth. An Australian house price record was set here in 2009 when mining magnate Chris Ellison bought a waterfront mansion for $52.5 million. Property investors can achieve positive gearing in this suburb with apartments. The median unit costs $380,000 and commands $2,000 per month in rent. This covers the monthly mortgage repayment of $1,925.
Somerville is a positive gearing suburb in the city of Kalgoorlie-Boulder in the state’s Eastern Goldfields region. An investment unit here will cost a median of $282,000 and command a monthly rent of $2,440. This easily covers the loan repayment of $1,428 per month, with more than $1,000 to spare.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
This renovated Hampton-style home offers luxury living and seamless indoor-outdoor entertaining in a prime coastal location.
A sanctuary of modern design and craftsmanship, this stunning north-facing family home in Dover Heights sets a new benchmark for luxury coastal living. Perched on a sun-drenched 563sqm block, the newly renovated residence combines elegance with functionality, making it the ultimate entertainer’s retreat.
Designed for seamless indoor-outdoor living, the open-plan living and dining areas lead out to a sunlit alfresco zone with a swimming pool. “It’s where we spend most of our time, whether we’re hosting friends or relaxing with family,” says the owner. Floor-to-ceiling glass doors maximise the natural light and offer views of the beautifully landscaped backyard.
At the heart of the home is a gourmet kitchen equipped with premium Bosch and Siemens appliances, including two 900mm ovens, two dishwashers, and a gas wok with dual extraction fans.
Upstairs, the four spacious bedrooms offer plenty of privacy. The master suite is a true retreat with a luxurious ensuite and custom-built wardrobes. Two other bedrooms feature their own ensuites, while a home office and gym complete the upper level. Convenience is key, with lift access to both floors, a remote-controlled garage with internal access, and off-street parking for three cars.
The home is packed with modern features like Daikin ducted air-conditioning with room-specific controls, rain-sensor skylights and CCTV. Sustainability is also a priority, with 48 solar roof panels and a Tesla 2.5kw solar edge inverter reducing the home’s environmental impact.
Located a short stroll from Rodney Reserve and local favourite Archies Café Co., the house is close to prestigious schools, Rose Bay village, and the iconic Bondi Beach. It’s the perfect blend of convenience and tranquillity, offering a family-friendly neighbourhood while being just minutes away from Sydney’s finest attractions.
With its timeless Hampton-style aesthetic and modern amenities, 60 Blake Street is more than just a home—it’s a lifestyle. Whether you’re entertaining guests or enjoying a quiet evening by the pool, every inch of this property has been thoughtfully designed for comfort and luxury.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.