Brunswick VIC Property Investment

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## 2. Market Overview - Median house price: $1,300,000 - Median unit price: $640,000 - 1‑year price growth: 4.7 % - 5‑year CAGR: 4.2 % per year - 3‑year growth forecast: 12.3 %

The suburb is posting solid price appreciation (4.7 % over the past year) and the forecast points to a further 12.3 % rise over the next three years. Days‑on‑market data were not supplied, but the combination of rising prices and a strong forecast signals a seller’s market – buyers need to act quickly, while sellers can command premium prices.

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## 3. Rental Market - Median weekly rent: $800 / wk - Gross rental yield: 3.2 %

Vacancy rate and demand rating were not provided, so we cannot quantify those metrics. With a 3.2 % gross yield, rental income is modest relative to the high purchase price, meaning investors should rely more on capital growth than on cash flow.

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## 4. Short‑Term Rental Opportunity No STR‑specific data (nightly rate, occupancy, or estimated annual revenue) were supplied. Consequently we cannot calculate an STR gross yield or compare it directly with the long‑term rental (LTR) yield. In the absence of STR figures, the LTR profile (3.2 % yield) remains the only quantifiable rental metric.

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## 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or employment hubs. However, Brunswick sits within the inner‑north of Melbourne (≈ 6 km from the CBD), which typically provides:

• Strong public‑transport connectivity (tram and train lines)
• Access to a diverse employment base across health, education, retail and creative industries

Because no concrete infrastructure numbers are supplied, we cannot attach a numeric driver to future demand.

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## 6. Bull Case If the 3‑year growth forecast of 12.3 % materialises:

Assuming rental yields stay at 3.2 % and vacancy remains low, the combined effect of capital growth and steady rent would boost total returns well above the current yield alone.

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## 7. Risks | Risk | Quantified element (from data) | Potential impact | |------|--------------------------------|------------------| | Vacancy risk | Vacancy rate not supplied – cannot quantify. If vacancy rises, the 3.2 % yield could fall sharply. | | Single‑employer dependency | No data on dominant employers – risk cannot be measured. | | Supply pipeline | No data on upcoming dwellings – a surge in new units could pressure rents and yields. | | Interest‑rate sensitivity | With a median house price of $1.3 m, a 1 % rise in the cash‑rate could increase mortgage repayments by roughly $13,000 per year on a 80 % loan, squeezing cash flow. |

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## 8. The Play - Entry range: - Houses: $1,300,000 (median) - Units: $640,000 (median)

• Minimum yield target: ≥ 3.2 % (the current gross yield) to ensure the investment at least matches the suburb’s baseline return.

• Watch signals:

• Recommended strategy:
• - Acquire a core‑plus property (house or high‑quality unit) at or below the median price.
• - Hold for 3–5 years to capture the projected 12.3 % capital gain while collecting steady rental income.
• - Re‑evaluate annually against the watch signals; consider refinancing if rates fall to improve cash flow, or exit if supply pressure drives yields below the 3.2 % threshold.