Dinmore, Ebbw Vale rated best for returns in property market
DINMORE and Ebbw Vale have become investors' gold thanks to cheaper homes and the 2000-strong workforce at JBS Dinmore abattoir.
The neighbouring suburbs are revealed in the Bank of Queensland's Spring Buyer's Guide as Ipswich's best suburbs for investment returns in the property market.
Using statistics from RP Data the guide shows Ebbw Vale boasts the highest rental yield for houses in Ipswich at 7.2% and Dinmore is not far behind at 7%, well above the Brisbane average rental yield for houses of 5.1%.
Both suburbs also have some of the cheapest median house prices for Ipswich, with properties in Ebbw Vale going for an average of $224,399 and properties in Dinmore going for $226,287.
Nearby Riverview was not far behind with the median value slightly higher at $230,700 and rental yield at 6.9%.
BOQ regional manager Anthony Kuskie said the solid rental yields combined with cheaper median house prices in some Ipswich suburbs could make it easier for those looking to expand their property portfolio or enter the housing market.
"(Dinmore and Ebbw Vale) are great areas for home buyers to get a foot in the door," he said.
"The house prices and the rental yields in the two suburbs complement each other well and are something for investors to consider."
REIQ Ipswich zone chairman Darren Boettcher said demand for rentals in Dinmore and Ebbw Vale was strong and could be directly attributed to jobs at the Dinmore abattoir.
However he said property was tightly held among investors.
"There are not too many examples of renovate and resale around Dinmore. It is buy and hold in that area," Mr Boettcher said.
He said the large contingent of workers on 457 visas at the plant helped drive the demand for accommodation close to one of the region's biggest employers.
"They all walk to work and they pay good money. And there's no oversupply of property. There are good houses that are renting quickly," he said.
Mr Boettcher said Raceview was the next suburb to watch with an increase in sales and house prices and rents going up.
"Rentals in Raceview have gone up $20 per week in the last 12 months. The average rental has gone from $320 to $340 and property values have gone up $50,000 in the last 18 months."
Suburbs attracting the top dollars were Pine Mountain, Deebing Heights and Karrabin, according to the BOQ report, with the median house in Pine Mountain valued at close to $500,000, Deebing Heights at $488,900 and Karrabin at $484,000.
Ebbw Vale and Dinmore are among the cheapest homes in Ipswich, with a median value of $224,400 and $226,300, and have the strongest rental yields at 7.2% and 7%. The highest number of sales for the past year was in Brookwater (111) and Goodna (67).
Mr Kuskie said it was important for both owner-occupiers and investors to do their homework before entering the market.
Strongest rental yield
- Ebbw Vale, 7.2%
- Wulkuraka, 7.1%
- Bundamba, 7%
- Dinmore, 7%
- Riverview, 6.9%