Tully QLD Property Investment

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## 2. Market Overview - Median house price: $335,000 - Median unit price: $333,899

Growth trend - 1‑year price change: ‑0.8 % (slight decline) - 5‑year CAGR: 3.2 % per year (steady long‑term growth) - 3‑year forecast: +13.5 % (optimistic outlook)

Days on market: data not available.

Signal for market participants - Buyers can negotiate around the $335k level because the last 12 months showed a marginal price dip. - Sellers face modest pressure; the forecasted 13.5 % upside suggests they can price for future growth rather than current demand.

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## 3. Rental Market - Median weekly rent: $400 / wk - Gross rental yield: 6.2 %

*Vacancy rate* and *demand rating* are not supplied, so we cannot quantify them.

Implication for investors – a 6.2 % gross yield is attractive in a regional market and offsets the recent –0.8 % price dip, supporting a hold stance.

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## 4. Short‑Term Rental Opportunity No STR data (nightly rate, occupancy, annual revenue) are provided.

Assessment – with only long‑term rental figures available, the safer approach is to focus on Long‑Term Rental (LTR) until STR metrics can be sourced.

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## 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or major employers.

Current driver – the modest 5‑year CAGR and strong 3‑year forecast suggest underlying regional demand, but without identified catalysts the growth story remains generic.

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## 6. Bull Case If the 3‑year forecast of +13.5 % materialises:

• Median house price could rise to ≈ $380,225 ( $335,000 × 1.135 ).
• Median unit price would move to a similar level, around $379,000.

At the same $400 / wk rent, the gross yield would improve to roughly 6.6 %, enhancing cash‑flow prospects.

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## 7. Risks | Risk | Quantified aspect | Potential impact | |------|-------------------|------------------| | Price correction | 1‑yr change –0.8 % | May erode equity if the decline continues | | Vacancy uncertainty | Vacancy rate not disclosed | Unclear cash‑flow stability; a rise above 5 % could cut net yield | | Interest‑rate sensitivity | Current yield 6.2 % | Higher rates could push net yield below the 5 % threshold | | Supply pipeline | No data on new dwellings | Unexpected new stock could increase competition and push rents down |

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## 8. The Play - Entry price range: around the median house price of $335,000 (± 5 % to capture slight variations). - Minimum yield target: 6 % gross (the current 6.2 % provides a buffer). - Watch signals: 1. Release of vacancy data – a rate under 5 % would confirm demand. 2. Confirmation of any infrastructure or employment projects. 3. Quarterly price reports showing a shift from the –0.8 % dip to positive growth.

Recommended strategy: acquire a house or unit near $335k, lock in a tenant at $400 / wk, and monitor the above signals. If vacancy stays low and price growth turns positive, consider modest rent increases to lift net yield; otherwise, hold until market fundamentals improve.