Maroubra NSW Property Investment

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### 2. Market Overview - Median house price: $2,718,680 - Median unit price: $1,073,277 - 1‑yr price growth: 20.3 % - 5‑yr CAGR: 5.8 % per annum - 3‑yr growth forecast: 2.5 %

*Days on market* is not supplied, so we cannot comment on current speed of sales.

Signal: Recent 20 % price jump shows strong seller momentum, but the modest 2.5 % 3‑year forecast suggests the market is likely to settle into a more balanced buyer‑seller environment over the medium term.

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### 3. Rental Market - Median weekly rent: $1,450 (≈ $75,400 annualised) - Gross rental yield: 2.8 %

*Vacancy rate* and *demand rating* are not provided.

Interpretation: A 2.8 % yield is modest relative to the high purchase price, indicating that rental cash flow alone will not drive strong returns. However, the stable rent level suggests a reliable income stream for long‑term investors.

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### 4. Short‑Term Rental Opportunity No data on STR nightly rates, occupancy, or estimated annual revenue are supplied. Consequently we cannot quantify an STR case, and the default recommendation is to focus on long‑term rental (LTR) until reliable STR data becomes available.

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### 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or employment‑base information for Maroubra. The strong investment score (75/100) and recent price performance imply underlying demand—likely driven by the suburb’s coastal lifestyle and proximity to Sydney’s CBD (within 5 km)—but we cannot attach concrete figures.

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### 6. Bull Case Assuming price appreciation continues at the 5‑yr CAGR of 5.8 % p.a.:

• 5‑year price projection (house):

• Annual rent (unchanged): $75,400

• Resulting gross yield after 5 years: $75,400 ÷ $3,605,000 ≈ 2.1 %

The upside lies in capital growth (≈ 33 % increase in 5 years). Yield would fall unless rent rises in step with price growth.

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### 7. Risks | Risk | Data‑driven Concern | |------|----------------------| | Rate sensitivity | A $2.718 m house typically requires a large loan; a 1 % rise in interest rates adds roughly $27,000 of annual interest on a $2.5 m loan (assuming 80 % LVR). | | Vacancy risk | Vacancy rate is not supplied; if vacancy spikes above 5 % the effective yield could drop below 2 %. | | Supply pipeline | No data on upcoming developments; new supply could cap price growth and increase competition for tenants. | | STR data gap | Lack of STR information prevents diversification into higher‑yield short‑term rentals. |

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### 8. The Play - Entry price range – *Houses:* $2.5 m – $2.8 m; *Units:* $950 k – $1.1 m. - Minimum yield target: ≥ 2.8 % (current gross yield). - Watch signals: 1. Any increase in days‑on‑market (once data becomes available). 2. Shifts in median weekly rent or emerging vacancy data. 3. Interest‑rate movements and announcements of new residential supply. - Recommended strategy: Acquire at the lower end of the price band, hold for 5‑7 years to capture the projected 5‑yr CAGR, rely on stable long‑term rental cash flow, and reassess if credible STR performance data emerges.