Mcgraths Hill NSW Property Investment

## 1. Investment Verdict Based on the Investment Scorecard, the verdict for Mcgraths Hill, NSW is to Hold, with a score of 63.0/100. The single most important number that justifies this verdict is the 3yr growth forecast of 13.5%, indicating a potential for moderate growth in the suburb.

## 2. Market Overview The median house price in Mcgraths Hill is $1,107,497, while the median unit price is $831,499. The market has experienced a 1yr price growth of 7.8% and a 5yr CAGR of 5.9%/yr. With a gross rental yield of 3.8% and a median weekly rent of $800/wk, the market signals a moderate rental return for investors. The high owner-occupier rate of 72% indicates a strong demand for properties in the suburb. However, the market cycle is currently cooling, which may impact buyer demand.

## 3. Rental Market The rental market in Mcgraths Hill is characterized by a low vacancy rate of 2.1%, indicating a high demand for rental properties. The median weekly rent is $800/wk, and the gross rental yield is 3.8%. The demand rating is high, with a rental demand driven by the suburb's population of 2,537 and a low unemployment rate of 3.1%. This makes Mcgraths Hill an attractive option for investors seeking rental income.

## 4. Short-Term Rental Opportunity The short-term rental market in Mcgraths Hill offers a median nightly rate of $546/night, with an occupancy rate of 40%. This translates to an estimated annual revenue of $79,536 (assuming 40% occupancy and $546/night). Compared to the long-term rental market, the short-term rental market may offer higher revenue potential, but it also comes with higher management costs and risks. Investors should carefully consider their investment strategy and target market before deciding between long-term and short-term rentals.

## 5. Infrastructure & Growth Drivers The suburb is serviced by the Mulgrave station, which is 1.4km away, providing convenient access to public transport. The New Intercity Fleet (NSW Trains) is currently under delivery, which may further enhance the suburb's connectivity and appeal. The limited development pipeline and low supply pipeline also contribute to the suburb's growth potential. With a low unemployment rate of 3.1%, the suburb's employment base is strong, driving demand for properties.

## 6. Bull Case If market conditions hold or improve, the upside scenario for Mcgraths Hill is promising. With a 3yr growth forecast of 13.5%, the suburb's median house price could potentially reach $1,253,111 (assuming a 13.5% annual growth rate). This, combined with the suburb's high rental demand and low vacancy rate, makes it an attractive option for investors seeking long-term growth and rental income.

## 7. Risks The specific risks associated with investing in Mcgraths Hill are limited, with no significant risk factors identified for the suburb. However, investors should be aware of the potential risks associated with the property market, including vacancy risk, interest rate changes, and supply pipeline fluctuations. The low vacancy rate of 2.1% and high rental demand mitigate the vacancy risk, but investors should still maintain a cash reserve to cover potential rental income shortfalls.

## 8. The Play The recommended entry range for Mcgraths Hill is between $900,000 and $1,200,000, considering the median house price of $1,107,497. Investors should target a minimum yield of 3.5% to ensure a moderate rental return. Watch signals include changes in the market cycle, interest rates, and supply pipeline, which may impact the suburb's growth potential. The recommended strategy is to hold existing properties and monitor market conditions before making new investment decisions.

Flood risk: not on record for this suburb in the NSW LEP / state planning overlay. Order an independent flood certificate before commit. Bushfire risk: not on record for this suburb in the state planning overlay. Order an independent BAL (Bushfire Attack Level) assessment before commit. Heritage status is not on record — confirm with the council duty planner / a Section 10.7 (NSW) or equivalent certificate.

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.