Charnwood ACT Property Investment

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## 2. Market Overview - Median house price: $743,500 - Median unit price: $609,245 - 1‑year price growth: 9.3% - 5‑year CAGR: 3.2% per annum - Days on market: *not supplied*

The 9.3% annual price rise and a 13.5% projected increase over the next three years show that capital values are still climbing sharply. Even without a days‑on‑market figure, the speed of price appreciation signals a seller’s market – buyers must act quickly, while sellers can command strong offers.

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## 3. Rental Market - Median weekly rent: $613 - Gross rental yield: 4.3% - Vacancy rate: *not supplied* - Demand rating: *not supplied*

A 4.3% gross yield sits above the national average for capital cities, indicating solid rental income. The lack of vacancy data prevents a precise risk assessment, but the yield suggests demand remains healthy.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: *not supplied* - STR occupancy: *not supplied* - Estimated annual STR revenue: *cannot be calculated*

Because no short‑term rental metrics are available, we cannot quantify an STR case. With a respectable 4.3% long‑term yield and no STR data, long‑term rental (LTR) is the safer, more predictable option for investors at this time.

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## 5. Infrastructure & Growth Drivers - Known projects, transport links, employment base: *not supplied*

The investment scorecard of 70/100 implies a favourable underlying environment, but specific infrastructure or employment drivers are not provided in the data set.

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## 6. Bull Case Assume the 3‑year forecast of 13.5% materialises and rent keeps pace with inflation (≈3% p.a.).

Capital growth of roughly $100k on a $743.5k property would deliver a strong total return when combined with rising rent.

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## 7. Risks | Risk | Quantified aspect | Comment | |------|-------------------|---------| | Vacancy risk | *No vacancy data* | Unable to gauge rental downtime; a sudden rise could erode the 4.3% yield. | | Interest‑rate sensitivity | Yield 4.3% | If borrowing costs exceed the yield, cash‑flow pressure emerges. | | Supply pipeline | *No data on new dwellings* | An influx of new units could lift vacancy and suppress rents. | | Single‑employer dependency | *No employment data* | Lack of information means we cannot confirm concentration risk. |

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## 8. The Play - Entry price range: $609,245 (units) – $743,500 (houses) - Minimum yield target: ≥ 4.3% gross (to match current market). - Watch signals: 1. Publication of days‑on‑market and vacancy statistics. 2. Changes in the Reserve Bank cash rate (affects borrowing costs). 3. Announcements of new residential projects in the suburb. - Recommended strategy: Acquire a property at the lower end of the price band, hold for 3‑5 years to capture the forecast 13.5% capital gain, and let the property generate a 4.3%+ gross rental return. Re‑assess annually for any shift in vacancy or supply dynamics.