Cambridge TAS Property Investment

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## 2. Market Overview - Median house price: $1,017,191 - Median unit price: $663,683 - 1‑yr price growth: +1.3 % (slow but positive) - 5‑yr CAGR: +5.7 % / yr (solid long‑term trend) - 3‑yr growth forecast: +13.5 % (future upside)

*Days on market* is not supplied, so we cannot comment on seller‑vs‑buyer pressure. The modest 1‑yr growth suggests buyers still have negotiating power, while the 5‑yr CAGR and 3‑yr forecast indicate sellers may benefit from a longer‑term appreciation trajectory.

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## 3. Rental Market - Median weekly rent: $498 - Gross rental yield: 2.5 %

*Vacancy rate* and *demand rating* are not provided. A 2.5 % gross yield is modest; it covers basic holding costs but leaves limited buffer for vacancy or rate hikes. Investors should view Cambridge as a stable‑income suburb rather than a high‑yield hotspot.

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## 4. Short‑Term Rental Opportunity No data are supplied for STR nightly rates, occupancy, or estimated annual revenue. Without those figures we cannot quantify STR performance, so the analysis defaults to Long‑Term Rental (LTR) as the clearer income path.

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## 5. Infrastructure & Growth Drivers The data set does not list specific projects, transport upgrades, or major employers. The 13.5 % 3‑yr growth forecast implies underlying demand drivers—likely regional employment and lifestyle appeal—but we cannot name them. Absence of explicit infrastructure information limits confidence in short‑term catalysts.

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

• Projected median house price: $1,017,191 × 1.135 ≈ $1,155,400
• Projected median unit price: $663,683 × 1.135 ≈ $753,800

This represents an upside of roughly $138,000 for houses and $90,000 for units, delivering capital growth well above the current 1‑yr increase.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Yield pressure | Gross yield sits at 2.5 %, leaving little margin if vacancy rises or expenses increase. | | Interest‑rate sensitivity | Low yield makes cash‑flow vulnerable to higher borrowing costs. | | Data gaps | No vacancy rate, demand rating, or STR metrics – uncertainty around rental stability. | | Supply pipeline | Without known upcoming developments, a sudden influx of new dwellings could compress rents and yields. |

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## 8. The Play - Entry range: Target properties around the median – houses near $1.0 M and units near $660 k. - Minimum yield to target: Aim for ≥2.5 % gross; consider properties with lower purchase price or higher rent to improve the margin. - Watch signals: 1. Release of any vacancy data for Cambridge. 2. Announcement of new infrastructure or employment projects. 3. Movements in the Reserve Bank’s cash‑rate that could affect borrowing costs. - Recommended strategy: Acquire a house or unit at or below the median price, hold for 3‑5 years to capture the forecasted 13.5 % capital gain, and collect steady rental income. Re‑assess annually against vacancy trends and interest‑rate changes.