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%.