Tusmore SA Property Investment

---

## 2. Market Overview - Median house price: $1,975,000 - Median unit price: $774,904 - 5‑year CAGR: 4.9 %/yr (steady long‑term appreciation) - 3‑year forecast growth: 13.5 % (projected upside) - Days on market: N/A

The solid 5‑year CAGR and a 13.5 % forecast signal a seller‑friendly environment for owners looking to capitalise on price gains, while buyers can still enter at a price that is expected to climb over the next three years.

---

## 3. Rental Market - Median weekly rent: $760 - Gross rental yield: 2.0 % - Vacancy rate: N/A - Demand rating: N/A

A 2.0 % gross yield is low by national standards, indicating that rental income alone will not cover financing costs for many investors. The lack of vacancy data means investors should verify current occupancy before committing.

---

## 4. Short‑Term Rental Opportunity - STR nightly rate: N/A - STR occupancy: N/A - Estimated annual STR revenue: N/A

Because STR metrics are unavailable, we cannot quantify the short‑term rental upside. Until data emerges, the long‑term rental (LTR) route remains the only calculable option.

---

## 5. Infrastructure & Growth Drivers - Known projects / transport / employment base: N/A

Tusmore sits within the Adelaide metropolitan area, so it benefits from existing city infrastructure and proximity to employment hubs, but specific projects or transport upgrades are not listed in the data set.

---

## 6. Bull Case Assume the 3‑year forecast of 13.5 % materialises and the 5‑year CAGR holds.

• House price upside: $1,975,000 × 1.135 ≈ $2,241,125 (≈ $266,000 gain)
• Unit price upside (using same %): $774,904 × 1.135 ≈ $879,800 (≈ $105,000 gain)

If rental yields improve to 2.5 % (from 2.0 %) while rent stays at $760 wk, annual gross rent would rise to $39,520, pushing the yield on a $1.975 m house to 2.0 % → 2.0 % (still modest) but indicating a healthier cash‑flow environment if yields climb.

---

## 7. Risks | Risk | Numerical Indicator | Impact | |------|---------------------|--------| | Low rental yield | 2.0 % gross | May not cover mortgage interest if rates rise. | | Vacancy uncertainty | Vacancy rate N/A | Unknown occupancy could erode cash flow. | | Supply pipeline | No data on new builds | An influx of new units could push yields lower. | | Interest‑rate sensitivity | Current yield 2.0 % vs typical loan rates 4‑5 % | Negative spread could force negative cash flow. | | Single‑employer dependency | No employer data provided | If the suburb relies heavily on one sector, a downturn could affect demand. |

---

## 8. The Play - Entry price range: - Houses: $1.90 m – $2.05 m (around the median $1.975 m) - Units: $750 k – $800 k (around the median $774,904)

• Minimum yield target: 2.5 % gross (to provide a buffer above the current 2.0 % yield).

• Watch signals:

• Recommended strategy:
• - Adopt a long‑term buy‑and‑hold approach, focusing on properties that can be upgraded to boost rent (e.g., adding a second bedroom or modernising kitchens).
• - Prioritise houses with potential for modest renovations that could lift the gross yield toward the 2.5 % target.
• - Re‑assess after 12 months when vacancy and supply data become available; if yields improve, consider adding to the position.

By entering at the current median price, targeting a 2.5 % yield, and monitoring the listed signals, investors can capture the suburb’s steady capital growth while managing the modest rental‑income risk.