Blakehurst NSW Property Investment

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## 2. Market Overview | Metric | Figure | |--------|--------| | Median house price | $2,334,041 | | Median unit price | $1,099,940 | | 5‑year CAGR (price) | 2.4 % per annum | | 3‑year price‑growth forecast | 7.6 % total | | Days on market | *Data not supplied* |

Interpretation - Prices have risen modestly over the past five years (2.4 % p.a.). - The forecast of 7.6 % growth over the next three years suggests an acceleration in price appreciation. - With days‑on‑market data unavailable, we cannot quantify current seller urgency, but the upward price outlook gives buyers a long‑term upside while sellers may still benefit from the forecasted appreciation.

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## 3. Rental Market | Metric | Figure | |--------|--------| | Median weekly rent | $1,100 / wk | | Gross rental yield | 2.5 % | | Vacancy rate | *Data not supplied* | | Demand rating | *Data not supplied* |

Interpretation - A 2.5 % gross yield is low relative to many growth‑suburbs, indicating that capital growth is the primary return driver rather than cash flow. - Without vacancy or demand data we cannot gauge short‑term rental pressure, but the steady rent level supports the modest yield.

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## 4. Short‑Term Rental (STR) Opportunity *No STR data (nightly rate, occupancy, or revenue) were provided.* Conclusion: With no evidence of a strong STR market, long‑term rental (LTR) remains the default strategy.

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## 5. Infrastructure & Growth Drivers *No specific infrastructure projects, transport upgrades, or employment‑base figures were supplied.* Implication: The analysis must rely on price‑trend and rental‑yield data alone; any future infrastructure announcements could materially affect demand.

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## 6. Bull Case Assume the 3‑year forecast of 7.6 % total price growth materialises:

• Projected median house price in 3 years:

• Projected median unit price (same % uplift):

If rental rates hold at $1,100 / wk, the gross yield would improve modestly as the price base rises slower than rent growth.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Vacancy risk | Vacancy rate not disclosed; a rise could push the already low 2.5 % yield lower. | | Interest‑rate sensitivity | Higher rates increase borrowing costs, potentially suppressing demand and further compressing yields. | | Supply pipeline | No data on upcoming dwellings; a surge in new units could increase competition and pressure rents. | | Limited growth data | Absence of 1‑year price growth makes short‑term trend assessment uncertain. |

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## 8. The Play - Entry price range: Target purchases near the median house price of $2.33 M (or median unit price of $1.10 M for lower‑capital entry). - Minimum yield target: 2.5 % gross (the current market level). - Watch signals: 1. Release of any days‑on‑market statistics – a drop would signal stronger seller power. 2. RBA interest‑rate moves – rising rates could depress price momentum. 3. Announcement of new transport or infrastructure projects – could lift demand and rents. - Recommended strategy: Acquire a house or well‑located unit, hold for 3‑5 years to capture the forecast 7.6 % price appreciation while collecting modest rental income. Re‑assess if vacancy data emerge or if a significant supply pipeline is announced.