Property

Rental properties tipped to deliver good returns

GLADSTONE investors can expect a 5-7% rise on their rental properties over the coming five years.

Research by Onthehouse.com.au predicts the average house value of $376,500 will grow 7% and unit value of $340,500 will grow by 5% in the next 12 months.

The rent yield on houses (averaging $405 a week) is about 5.61% and the rent yield on units (about $350 a week) is 5.33%.

While the projections for Gladstone are healthy, investors in Biloela are feeling the joy with the city making Onthehouse.com.au's top 50 rental investment-potential.

Biloela property owners can expect a 6% growth rate forecast.

Biloela was ranked 50 out of 12,000 towns, cities and suburbs across the country.

The median house value in the central Queensland town is about $80,000 lower than Gladstone at $292,500 and the median rental is $370 a week.

Property analyst John Edwards said the modelling was based on past sales and market history.

"Something that every potential investor wants to hear is that a suburb's future capital return is reasonably strong and this is ultimately what Biloela's predicted growth rate over the next five years indicates," Mr Edwards said.

Biloela First National Real Estate principal Ross Munroe said local investors enjoyed excellent returns on properties.

"We have one client that purchased land and built back in 1998 and this property has not had a single day without a tenant," he said.

"Land in 1998 could be purchased for as little as $19,000, the build cost I believe was about $150,000 for a four-bed

room home including ensuite and double lock-up garage.

"The value of the property if sold today would come in between $400,000 and $420,000; not a bad investment I would suggest.

"We have always encouraged clients to purchase as soon as they have sufficient deposit or equity saved and be in the market as we cannot predict when the next boom will arrive."

The data, released late last month shows the median value for houses in Brisbane is $459,000.

Properties average a capital growth of 0.50% and the median rental is $440, representing a median rental yield of 5.03%.

Topics:  gladstone property, housing, market, real estate, renting




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

THE EXPERT: Stop judging working mothers

SUPER MUMS: Being a working mums comes down to perfecting time management.

"WORKING for money is all right; so is working because you want to.”

OPINION: How to prepare your child for day care

Your kids will love childcare, but it may take some adjusting.

GETTING your child ready for day care is vital.

MUMS' TOP 5: 'Musts' to have on your childcare checklist

SOME FALL SHORT: Organisations that train childcare workers will be subjected to extra audits.

SENDING your child off to day care can be daunting and confusing.

Health and nutrition with kids - how do you balance it?

HOW important is health and nutrition in your household?

Smack or no smack - where do you stand?

THE debate is reignited - is smacking acceptable?

Technology and kids: Do you ever cut their wi-fi?

Check out our new video series featuring mums having a chat

Everything you need to know for the next cruise ship arrival

The Pacific Jewel docked in Gladstone.

Pacific Jewel visiting Gladstone on Tuesday

LETTER: Where do Flynn candidates stand in abortion debate

This is a priority for this Gladstone resident

Flynn candidates share their ‘resumes’

Jordan Puku pictured when he was around 12 years old.

Flynn candidates share their 'resumes'

Latest deals and offers

Kirkwood Rd car crash

A Suzuki van crashed on Kirkwood Rd today, flipping on its side. Gladstone Fire and...

Van flips on Kirkwood Rd

A van has flipped on Kirkwood Rd, and police are diverting traffic.

Vivid timelapse

Screenshot from timelapse of Sydney's Vivid Festival

This timelapse shows Sydney's Vivid Festival

Three bedroom, 1100sqm block: Is this Qld's cheapest home?

BARGAIN BUY: Is this North Bundaberg property the cheapest home in Queensland?

Becoming a real estate mogul is all about risk and reward

PROPERTY BOOM: Coast prices set to skyrocket

Like other areas in south-east Queensland, the Sunshine Coast is at the start of the upturn on the property clock.

Values predicted to rise 25-33%