Single industry towns offer high yields but are littered with cautionary tales
The temptation to chase high rental yields can be irresistible but if it means buying in a town too heavily reliant on one industry due diligence is essential.
Towns with a boom-bust property market, such as Whyalla in South Australia (pictured), demand careful consideration for property investors seeking high rental yields. (Image source: Shutterstock.com)
Often investors are attracted to the cheap house prices and very high rental yields that can be found in some of Australia’s resources towns but recent events in two of the nation’s iconic locations demonstrate why this can be a strategy fraught with peril.
For any investor, experienced or not, a diverse economy is a core factor to take into consideration when selecting a location in which to buy. That means locations dominated by one industry s…
