Khancoban NSW Property Investment

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## 2. Market Overview - Median house price: $302,272 - Median unit price: $268,104 - 1‑year price growth: 44.6 % – a very strong short‑term rally. - 5‑year CAGR: 3.4 % per annum – modest long‑term expansion. - 3‑year growth forecast: 13.5 % (projected). - Days on market: *data not supplied*.

Signal: The recent 44.6 % jump suggests sellers have been able to command premium prices, but the modest 5‑year CAGR indicates the market is still in an early‑stage growth phase. With no days‑on‑market figure, we cannot gauge current buyer‑seller balance, but the high yield points to a buyer‑friendly rental market.

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## 3. Rental Market - Median weekly rent: $455 / wk - Gross rental yield: 7.8 % - Vacancy rate: *data not supplied* - Demand rating: *data not supplied*

Implication: A 7.8 % yield signals solid cash flow potential. Without vacancy data we cannot quantify risk, but the yield alone makes the suburb attractive for income investors.

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

Conclusion: Because no short‑term rental metrics are available, we cannot compare LTR versus STR. The safe default is to focus on long‑term rental (LTR) given the known 7.8 % yield.

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

Observation: Without explicit infrastructure or employment information, we cannot identify specific demand catalysts or constraints for Khancoban.

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## 6. Bull Case Assume the 3‑year growth forecast of 13.5 % materialises:

\*Unit projection uses the same 13.5 % uplift for illustration.

If prices reach these levels while the 7.8 % gross yield is maintained, annual rental income would rise proportionally, delivering higher absolute cash flow and potential capital gains for investors who entered at today’s medians.

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## 7. Risks | Risk | Detail (numbers where available) | |------|-----------------------------------| | Vacancy risk | Vacancy rate not provided; a high vacancy could erode the 7.8 % yield. | | Single‑employer dependency | No employment data supplied; reliance on a dominant local employer cannot be assessed. | | Supply pipeline | No information on new housing approvals; a surge in supply could pressure rents and yields. | | Interest‑rate sensitivity | With a 7.8 % gross yield, any rise in borrowing costs will reduce net cash flow, especially for leveraged investors. | | Price correction risk | The 44.6 % 1‑yr price surge may be unsustainable; a reversal could impact equity values. |

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## 8. The Play - Entry price range: $268,104 (median unit) – $302,272 (median house). - Minimum yield target: ≥ 7.8 % gross (to match the suburb’s current benchmark). - Watch signals: - Publication of days‑on‑market and vacancy statistics. - Any announced infrastructure or employment projects. - Changes in the 3‑year growth forecast or actual price movements. - Interest‑rate movements that affect net yields. - Recommended strategy: 1. Hold existing positions to capture the strong current yield. 2. Accumulate on price dips if the market corrects from the 44.6 % annual surge, provided the yield stays at or above 7.8 %. 3. Prioritise long‑term rental assets until reliable short‑term rental data becomes available.

*All statements are based solely on the data supplied.*