Some suburbs are producing some incredible rental yields, but the numbers alone can sometimes be deceiving.

Speaking in generalities, it's fairly simple to pinpoint the best cities for yields. But getting into more specific suburbs and towns can prove more tricky. While The Rocks and Woolloomooloo suburbs of Sydney take in yields above 9%, units in other local suburbs such as Darlington and Waverton have yields below 4%, according to RP Data. Finding an exact property takes even more work.

Tim Lawless, research director at RP Data, says it's best to stick by areas with a close proximity to major working nodes, but still within a lower range purchase price. That's rarely in the city itself, but in some of the surrounding areas.

"More often than not, the best yields are still found in the city fringes where the purchase cost of a house provides an affordable entry point to the market and weekly rents are very competitive," Lawless says.

To read the full article, check out the latest issue of Your Investment Property out on sale now.

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