1. South Hedland, Port Hedland, Pilbara, WA

Rental Yield: 12.9%

South Hedland had a population of 9,381 at the 2011 Census and was originally designed as a satellite city to Port Hedland.

2. Bairnsdale, East Gippsland, East Gippsland, VIC

Rental Yield: 9.6%

Households in Bairnsdale are primarily couples with children and are likely to be repaying between $1000 and $1400 per month on mortgage repayments according to 2011 Census data.

Related: How to: Spot a Growth Area

3. Iluka, Clarence Valley, Mid-North Coast, NSW

Rental Yield: 9.0%

Iluka is a popular tourist destination situated at the mouth of the Clarence River in New South Wales. In 2006, 66.9 per cent of the homes in Iluka were owner-occupied compared with 62.0 per cent in 2011.

4. Whyalla Stuart, Whyalla, Northern, SA

Rental Yield: 8.8%

Whyalla Stuart is located on the east coast of the Eyre Peninsula. Whyalla Stuart had a population of 7,145 in 2011 and 47.7% of homes were owner-occupied.

5. Woree, Cairns, Far North, QLD

Rental Yield: 8.7%

Woree is situated next to the Bruce Highway south of Cairns. In 2011, only 44.1 per cent of homes in Woree were owner-occupied.

6. Grafton, Clarence Valley, Mid-North Coast, NSW

Rental Yield: 8.6%

Grafton is the commercial hub of the Clarence River valley in New South Wales, located approximately 630 kilometres north of Sydney.

7. Chinchilla, Dalby, Darling Downs, QLD

Rental Yield: 8.6%

Located approximately 300 kilometres northwest of Brisbane, Chinchilla is home to the Kogan Creek Power station. In 2011, 61.1 per cent of Chinchilla homes were owner-occupied.

8. Manunda, Cairns, Far North, QLD

Rental Yield: 8.5%

In 2006, 41.4 per cent of homes in Manunda were owner-occupied, compared to only 39.2 per cent in 2011.

Related: Your home is your future

9. Edge Hill, Cairns, Far North, QLD

Rental Yield: 8.4%

Edge Hill is an inner suburb of Cairns in Queensland. In 2011, 59.6 per cent of homes were owner-occupied.

10. Newstead, Launceston, Northern, TAS

Rental Yield: 8.4%

Newstead is located approximately 2.4 kilometres east of Launceston CBD in Tasmania.

(Source: MYRP Data)

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