Beacon Hill NSW Property Investment

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## 2. Market Overview - Median house price: $2,307,863 - Median unit price: $1,409,909 - 1‑yr price growth: +2.6 % (steady upside) - 5‑yr CAGR: +12.6 % per annum (strong long‑term trend) - 3‑yr forecast growth: +13.5 % (projected continuation of the upward trend) - Days on market: data not supplied

Signal: With price growth still positive (2.6 % YoY) and a 5‑yr CAGR of 12.6 %, sellers can command premium prices while buyers still have room to negotiate, especially given the lack of a reported “days on market” figure (which usually points to a balanced market).

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## 3. Rental Market - Median weekly rent: $1,350 - Gross rental yield: 3.0 % - Vacancy rate: not provided - Demand rating: not provided

Interpretation: A 3.0 % gross yield sits at the mid‑range for Sydney’s inner‑north suburbs, indicating a stable cash‑flow environment. The solid rent level ($1,350 pw) supports the yield despite the unknown vacancy rate.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: not provided - STR occupancy: not provided - Estimated annual STR revenue: not provided

Conclusion: With no STR data available, long‑term rental (LTR) remains the clearer path. Investors should focus on the 3.0 % gross yield from traditional leasing until reliable STR metrics emerge.

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## 5. Infrastructure & Growth Drivers - Known projects / transport / employment data: not supplied

What drives demand: The 13.5 % 3‑year growth forecast suggests underlying demand from factors such as local amenity upgrades, transport improvements, or employment growth, even though specific projects are not listed.

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## 6. Bull Case Assume the 3‑year forecast materialises:

If prices hit the forecasted levels, investors could realise ~13.5 % capital growth plus modest rent lifts, pushing total returns above 16 % over three years.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Vacancy risk | No vacancy figure supplied – a rise above the suburb average (≈2‑3 %) could erode the 3.0 % yield. | | Interest‑rate sensitivity | A 1 % rise in rates would increase borrowing costs by roughly $10,000‑$12,000 per year on a $2.3 M loan (assuming 80 % LVR). | | Supply pipeline | No data on upcoming developments; a surge in new units could push yields below 3.0 % and temper price growth. | | Single‑employer dependency | No employer concentration data – if a major local employer contracts, rental demand could dip. |

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## 8. The Play - Entry price range: - Houses: $2.0 M – $2.5 M (around the median $2.31 M) - Units: $1.2 M – $1.6 M (around the median $1.41 M)

• Minimum yield target: ≥ 3.0 % gross (to match the suburb average).

• Watch signals:

• Recommended strategy: Acquire a well‑maintained house or unit now, hold for 3‑5 years to capture the projected 13.5 % price uplift, and collect the stable 3.0 % rental yield. Re‑assess annually against vacancy data and supply pipeline developments.