Brunswick VIC Property Investment

---

## 2. Market Overview - Median house price: $1,200,000 - 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 shows solid price momentum: 4.7 % growth in the past year and a 12.3 % forecast over the next three years. This upward trend suggests buyers are still willing to pay a premium, while sellers can expect a favourable price environment. *Days on market* is not supplied, so we cannot quantify the speed of transactions, but the price data alone points to a seller‑friendly market at present.

---

## 3. Rental Market - Median weekly rent: $800 / wk - Gross rental yield: 3.5 %

The 3.5 % yield indicates a modest but stable cash‑flow profile. *Vacancy rate* and *demand rating* are not provided, so we cannot comment on rental tightness. Nonetheless, the rent level relative to the median unit price ($640,000) supports the current yield calculation.

---

## 4. Short‑Term Rental Opportunity No STR data (nightly rate, occupancy, or estimated annual revenue) is supplied. Without those figures we cannot compare long‑term rental (LTR) versus short‑term rental (STR) profitability for Brunswick.

---

## 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or employment hubs. Consequently we cannot quantify the impact of infrastructure on demand. Historically, Brunswick’s proximity to Melbourne’s inner‑city corridor has attracted residents, but any new drivers remain unconfirmed in the supplied information.

---

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

• House scenario: $1,200,000 × 1.123 ≈ $1,347,600 after three years.
• Unit scenario: $640,000 × 1.123 ≈ $718,720 after three years.

Assuming rent keeps pace with inflation (≈2–3 % per year), the weekly rent could rise from $800 to roughly $860–$880, nudging the gross yield slightly higher while capital gains drive the primary upside.

---

## 7. Risks | Risk | Why it matters (numbers) | |------|--------------------------| | Rate sensitivity | Gross yield sits at 3.5 %; a rise in interest rates could push mortgage costs above rental income, squeezing cash flow. | | Supply pipeline | No data on upcoming developments; a sudden influx of new units could lift vacancy and push yields down. | | Vacancy uncertainty | Vacancy rate is not supplied; higher than expected vacancy would erode the 3.5 % yield. | | Economic dependence | No employer‑specific data; if the suburb relies heavily on a single industry, a downturn there could affect both price growth and rental demand. |

---

## 8. The Play - Entry price range: $640,000 – $1,200,000 (unit to house median). - Minimum yield target: 3.5 % (the current gross yield). - Watch signals: * Release of days‑on‑market data – a drop would confirm strong buyer demand. * Announcements of new transport or housing projects – could affect supply/demand balance. * Reserve bank rate moves – watch for impacts on mortgage servicing costs. - Strategy: Acquire a unit or house at the lower end of the price band, aim for a yield at or above 3.5 %, and hold for 3–5 years to capture the forecast 12.3 % capital growth. If STR data later becomes available and indicates a high nightly rate with strong occupancy, reassess the asset for a possible conversion to short‑term rental.