Coober Pedy offers investors great value purchases with high rental returns – realestate.com.au

Smart investors looking for a bargain that can still make them money should consider real estate in the South African outback.

Many Coober Pedy homes are sold at a reduced rate but still generate a solid income when rented out, new data shows.

According to the latest PropTrack figures, suppliers are accepting offers that are approximately 13.7 percent below their original asking price.

Meanwhile, they received the highest rental yields in the country, with an average rental yield of 17.39 percent – ​​up from the 15.43 percent reported in July.

The average house price in Coober Pedy is just $76,250.

By comparison, sellers in Greater Adelaide generally do not need to discount their homes or units to sell them, with rental yields of 3.65 per cent and 4.53 per cent respectively.

The average house price for Adelaide is $855,000, while the average unit price is $597,000.

Warren Andrews, director of Andrews Property, which has an office in Coober Pedy, said there were many benefits to investing in the outback city, 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 because we’ve probably seen for the last year or so that third-party or interstate investors are buying property there because it’s affordable or cheap.

“They’re actually spending the money on properties to fix them up.

“They get a good return, not only on their original investment, but also on their improvements.”

The property at Lot 400 Medway Drive is for sale for $39,000.

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Mr Andrews said there had been a wave of cheaper homes on the market over the past six months, which happened on and off.

He said it was mainly local residents who were selling, many of whom were happy to sell their homes at a lower price if it meant paying them off quickly as they were struggling financially for various reasons.

Given the strong demand for limited rental properties on the market – just three, according to realestate.com.au – Andrews said it was no surprise yields were so high.

Misty Mance of Andrews Property said in July after the sale of the blighted property at Lot 527 Van Brugge St that cheap properties in the area were not desirable for every buyer, but a great opportunity for some.

“It offers opportunities for a first-time home buyer or others who can’t get into the market,” she said at the time.

“Its condition doesn’t worry some people because it’s an opportunity to own a home that they might not otherwise have.

“If those opportunities weren’t there, they might not have anywhere else to go.”

The property at Lot 527 Van Brugge St was recently sold.

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