Bonbeach VIC Property Investment

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## 2. Market Overview - Median house price: $1,300,000 - Median unit price: $880,000 - 1‑year price growth: 5.9 % - 5‑year CAGR: 5.7 % per year - 3‑year growth forecast: 13.5 %

*Signal:* Price growth is solid (near‑6 % in the past year) and the 3‑year forecast of 13.5 % suggests continued upside. With no days‑on‑market figure supplied, we cannot quantify market speed, but the upward price trajectory signals a seller‑friendly environment for those looking to exit, while buyers can still access capital‑growth potential at current median levels.

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## 3. Rental Market - Median weekly rent: $720 / wk - Gross rental yield: 2.9 %

*Vacancy rate* and *demand rating* are not provided, so we cannot quantify those metrics. *Interpretation:* A 2.9 % gross yield is modest; investors should expect lower cash‑flow returns but can rely on the strong price‑growth backdrop to boost total returns over time.

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## 4. Short‑Term Rental (STR) Opportunity No data on nightly rates, occupancy, or estimated annual STR revenue are supplied. Consequently we cannot calculate an STR yield or compare it to the long‑term rental (LTR) yield of 2.9 %. In the absence of STR specifics, the default strategy is to treat the property as a long‑term rental investment.

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## 5. Infrastructure & Growth Drivers The data set does not list any specific infrastructure projects, transport upgrades, or major employment hubs for Bonbeach. The 13.5 % 3‑year growth forecast implies underlying demand drivers (e.g., lifestyle appeal, proximity to the coast), but without concrete project details we cannot attribute growth to a particular source.

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## 6. Bull Case If the current growth trajectory holds and the 3‑year forecast materialises:

• House price upside: $1,300,000 × 1.135 ≈ $1,475,500
• Unit price upside: $880,000 × 1.135 ≈ $999,000

Assuming rent keeps pace with price growth, the gross yield could rise modestly above the current 2.9 %, enhancing total return.

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## 7. Risks | Risk | Quantified Concern (where data exist) | |------|---------------------------------------| | Vacancy risk | Vacancy rate not supplied – a higher-than‑expected vacancy would erode the already modest 2.9 % yield. | | Single‑employer dependency | No employment‑base data – reliance on a dominant local employer could amplify downside if that employer contracts. | | Supply pipeline | No data on upcoming dwellings – a surge in new supply could pressure prices and yields. | | Rate sensitivity | With a 2.9 % gross yield, any rise in borrowing costs could squeeze net cash flow. |

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## 8. The Play - Entry range: Target purchases near the median – $1,300,000 for houses or $880,000 for units. - Minimum yield target: Aim for ≥ 2.9 % gross yield; consider properties with lower purchase price or higher rent to improve cash flow. - Watch signals: * Any release of days‑on‑market data (shortening would indicate stronger seller power). * Vacancy statistics – a rise above 3 % would flag cash‑flow pressure. * Announcement of new infrastructure or large‑scale developments in the area. * Movements in the Reserve Bank’s cash‑rate that could affect borrowing costs. - Recommended strategy: Acquire at or below median price, hold for 3‑5 years to capture the forecast 13.5 % capital gain, and rely on steady long‑term rental income. Re‑evaluate if vacancy data emerges or if a significant supply pipeline is announced.