Unearthed: The regional areas ripe for investment

New analysis has revealed some of Australia’s most promising non-capital city property investment markets, where would-be buyers can find relatively affordable opportunities.

Real estate analytics firm Suburbtrends looked at secondary cities within 200km of a capital and applied more than a dozen key metrics to unearth suburbs that deliver a minimum 4.5 per cent yield.

Kent Lardner, Suburbtrends’ chief analyst, said the research took into account rental affordability, location, socio-economic ranking, price growth, inventory levels and vacancy rates.

That criteria narrowed the search to four regions – Bunbury and Mandurah in Western Australia, and the Gold Coast and Sunshine Coast in Queensland.

“Bunbury boasts the highest count of suburbs making the cut at 12, as well as the most listings available, most house options and the best median yield at 6.2 per cent,” Mr Lardner said.

“This combination of factors portrays Bunbury as an attractive market for both investors and

potential homebuyers.”

Among the suburbs identified was Binningup, which provides a strong market for house investments – with seven currently on the market at a median price of $499,000 and a rental median of $550 per week, yielding a very healthy 7.94 per cent.

College Grove was also a strong pick, with four houses currently on the market at a median price of $492,000 and a rental median of $510 per week, yielding 5.89 per cent.

“Bunbury stood out in our analysis, not just for its gateway status to the southwest region but for the balance it offers between liveability and investment appeal,” Mr Lardner said.

“Its unique characteristics align well with our criteria, making it a significant highlight in our shortlist.”

Meanwhile, the analysis produced 11 suburbs on the Gold Coast that fit the bill – a region that “excels in rental market dynamics”.

The Gold Coast ‘excels in rental market dynamics’

Among them was Bundall, a popular spot for investors. There are currently 12 units available at a median price of $557,000, yielding 5.76 per cent.

A few hours up the road, the Sunshine Coast was another strong performer in the analysis with a host of qualities that indicate a “mature and stable property market”.

Among the picks was the suburb of Wurtulla, which stood out for its unit prospects with four apartments on the market at a median price of $645,000, yielding 4.71 per cent.

Mr Lardner said Buderim was also on the list, with 27 units for sale at a median price of $585,000, yielding 4.85 per cent.

Finally, Mandurah produced four suburbs that fit the research scope, including Halls Head, where there are 64 houses on the market with a median price of $565,600, yielding 4.84 per cent.

The suburb also made the list for units, with eight up for grabs at the moment with a median price of $400,000 and a rental median of $500 per week, yielding 6.91 per cent.”

Mr Lardner said the research offers “a multifaceted perspective” on the current state of the property market in key non-capital locations.

“It’s a snapshot that reveals trends, opportunities, and challenges, providing practical guidance for both investors and homebuyers.”

Former President Donald Trump said he would ban undocumented immigrants from obtaining home mortgages, a move he indicated would help ease home prices even though these buyers account for a tiny fraction of U.S. home sales.

Home loans to undocumented people living in the U.S. are legal but they aren’t especially common. Between 5,000 and 6,000 mortgages of this kind were issued last year, according to estimates from researchers at the Urban Institute in Washington.

Overall, lenders issued more than 3.4 million mortgages to all home purchasers in 2023, federal government data show.

Trump, the Republican presidential nominee, made his comments Thursday during a policy speech to the Economic Club of New York in Manhattan.

Housing remains a top economic issue for voters during this presidential election. Rent and home prices grew at historic rates during the pandemic and mortgage rates climbed to levels not seen in more than two decades. A July Wall Street Journal poll showed that voters rank housing as their second-biggest inflation concern after groceries.

Both major candidates for the 2024 presidential election have made appeals to voters on housing during recent campaign stops, though the issue has so far featured more prominently in Vice President Kamala Harris ’s campaign.

Trump has blamed immigrants for many of the nation’s woes, including crime and unemployment. Now, he is pointing to immigrants as a cause of the nation’s housing-affordability crisis. Yet some affordable-housing advocates and real-estate professionals said Trump’s mortgage proposal would fail to bring relief to priced-out home buyers.

“It’s unfortunate that given the significant housing affordability crisis that is widely acknowledged across most partisan lines, we are arguing about a minuscule segment of the market,” said David Dworkin, president of the National Housing Conference, an affordable-housing advocacy group.

Gary Acosta, chief executive of the National Association of Hispanic Real Estate Professionals, a trade organization, said, “It’s just another effort to vilify immigrants and to continue to scapegoat them for any issues that we have here in the United States.”

A Trump campaign spokeswoman didn’t immediately respond to a request for comment.

Undocumented immigrants in the U.S. can obtain an obscure type of mortgage designed for taxpayers without Social Security numbers, most of whom are Hispanic. The passage of the USA Patriot Act of 2001 allowed banks to use identification numbers from the Internal Revenue Service as an alternative to Social Security, extending a number of financial services to people without legal status for the first time.

Mortgage loans for undocumented immigrants are typically higher interest and borrowers include legal residents who have undocumented spouses, Acosta said. Lenders include regional credit unions and community-development financial institutions.

In his speech, Trump said that “the flood” of undocumented immigrants is driving up housing costs. “That’s why my plan will ban mortgages for illegal aliens,” he said.

Trump didn’t elaborate on how he would enact a ban on such loans.

Though mortgages for undocumented people living in the U.S. are relatively rare, residential real-estate purchases by foreign nationals are big business , especially in expensive coastal cities such as New York and Los Angeles. These sales have declined in recent years, however.

Close to half of foreign purchases are made by people residing abroad, while the other half are made by recent immigrants or residents on nonimmigrant visas, according to an annual survey by the National Association of Realtors. Many affluent foreigners buy U.S. homes with cash instead of obtaining mortgage financing.

In his Thursday speech, which focused mostly on other economic matters such as energy and taxation, Trump proposed other measures to bring down housing costs, including cutting regulations for builders and allowing more building on federal land. Similar ideas appeared in the housing policy outline Harris released in August .

The former president has spoken on housing-related issues in speeches at other recent campaign stops, including in Michigan last month, where he touted his administration’s 2020 overturn of a policy that had encouraged cities to reduce racial segregation .

“I keep the suburbs safe,” Trump said. “I stopped low-income towers from rising right alongside of their house. And I’m keeping the illegal aliens away from the suburbs.”

Unearthed: The regional areas ripe for investment

Strong yields make these ‘secondary cities’ attractive options

The Republican nominee says it would help bring down home prices, though these buyers account for a fraction of U.S. home sales