The Sydney property market is insanely hot right now, and the city attracts a lot of tourists. It doesn't automatically follow that it's a good idea to invest in holiday accommodation in Sydney, however.
Sydney picture from Shutterstock
Finder.com.au ran an analysis of the most popular holiday destinations in Australia, as ranked by TripAdvisor and then compared them against expected rental yields, based on average property price.
Not surprisingly, the big cities had the largest appeal, with Sydney, Melbourne and Brisbane topping the desirability list.
A home run for the argument around where to buy, but there's a distinct downside, led by smaller average yields on property based on the average property price. Finder pegged this at a yield of just 1.93 percent, an average rent of $855 per week and median house price of $2.308 million.
So where should you invest? Cessnock apparently, in New South Wales' Hunter District. It managed tenth place in Tripadvisor's desirability index, while managing an expected yield of 5.89 percent based on a median house price of $269,000 and average rent of $305 per week.