Bilgola Plateau NSW Property Investment

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### 2. Market Overview | Metric | Figure | |--------|--------| | Median house price | $2,434,162 | | Median unit price | $1,382,128 | | 1‑yr price growth | 9.1 % | | 5‑yr CAGR | 18.1 % per annum | | 3‑yr growth forecast | 1.6 % | | Days on market | *Data not supplied* |

What it signals - Sellers enjoy momentum: a 9.1 % price rise in the last 12 months and an 18.1 % annualised increase over five years indicate strong buyer appetite and willingness to pay premium prices. - Buyers face a high entry cost (median house > $2.4 m) and a modest forecast of 1.6 % over the next three years, suggesting price growth may decelerate.

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### 3. Rental Market | Metric | Figure | |--------|--------| | Median weekly rent | $1,373 | | Gross rental yield | 2.9 % | | Vacancy rate | *Data not supplied* | | Demand rating | *Data not supplied* |

Interpretation - The 2.9 % gross yield is low relative to the high capital value, indicating that rental income alone will not offset financing costs in a high‑interest‑rate environment. - Nevertheless, a weekly rent of $1,373 reflects strong underlying demand for premium rentals in this coastal suburb.

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### 4. Short‑Term Rental Opportunity - STR nightly rate – *Data not supplied* - Occupancy – *Data not supplied* - Estimated annual STR revenue – *Data not supplied*

*Conclusion*: With no STR data available, we cannot quantify the short‑term rental upside. Until reliable STR metrics emerge, a long‑term rental (LTR) focus remains the safer default.

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### 5. Infrastructure & Growth Drivers - Known projects, transport upgrades, employment base – *Data not supplied*

*Conclusion*: Without specific infrastructure or employment information, we cannot attribute additional demand drivers beyond the historical price performance.

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### 6. Bull Case Assume the 5‑year CAGR of 18.1 % continues for the next five years:

• Projected median house price:

• Projected median weekly rent (using the 3‑yr forecast of 1.6 % p.a.):

• Potential gross yield at that rent level:

Upside scenario: Capital value could more than double, delivering a substantial wealth‑building opportunity for investors who can tolerate the low yield and high price point.

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### 7. Risks | Risk | Quantified Concern | |------|--------------------| | Growth slowdown | Forecasted 3‑yr growth of only 1.6 % versus the recent 9.1 % suggests momentum may be fading. | | Yield pressure | Current gross yield of 2.9 % sits below the typical 3‑4 % target for high‑price markets, making the investment sensitive to interest‑rate rises. | | Affordability / buyer pool | Median house price of $2.43 m limits the number of qualified purchasers, potentially lengthening sale cycles if market sentiment shifts. | | Data gaps | Absence of vacancy, STR, and infrastructure data hampers precise risk modelling; any adverse surprise (e.g., new supply) could impact returns. |

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### 8. The Play - Entry price range: $2.40 m – $2.50 m (around the current median house price). - Yield target: Aim for ≥ 3 % gross yield; consider negotiating for a price below the median or seeking properties with higher rent potential (e.g., larger units). - Watch signals: 1. Updates to the 3‑yr growth forecast (any upward revision strengthens the case). 2. Emerging vacancy or rental‑rate data for the suburb. 3. Announcements of major infrastructure or transport projects that could lift demand. - Recommended strategy: Acquire a high‑quality house or large unit at the lower end of the price band, hold for 5‑7 years to capture the historical 18 % CAGR, and monitor rental market data to decide whether to switch to a short‑term rental model if STR metrics become favourable.

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*All figures are drawn exclusively from the supplied data; no assumptions beyond the given numbers have been introduced.*