Charlemont VIC Property Investment

## 1. Investment Verdict We recommend a Buy for Charlemont, VIC, with the single most important number justifying this decision being the 3yr growth forecast of 13.5%. This indicates a strong potential for long-term capital growth, making it an attractive investment opportunity.

## 2. Market Overview The median house price in Charlemont, VIC, is $650,000, while the median unit price is $416,574. The market has experienced a 1yr price growth of 3.4% and a 5yr CAGR of 3.5%/yr. Although the days on market are not available, the owner-occupier rate of 69% suggests a relatively stable market. For buyers, this stability, combined with the potential for growth, presents an opportunity. For sellers, the current market cycle, which is cooling, might suggest it's a good time to sell before the market cools further.

## 3. Rental Market The vacancy rate in Charlemont, VIC, is 2.4%, indicating a tight rental market. The median weekly rent is $530/wk, which translates to a gross rental yield of 4.2%. With rental demand rated as high and an unemployment rate of 3.1%, the rental market is favorable for investors. This suggests that investors can expect relatively low vacancy risks and stable rental income.

## 4. Short-Term Rental Opportunity While the median nightly rate for short-term rentals is $181/night, the occupancy rate is not available. Without this crucial piece of information, it's challenging to estimate the annual revenue accurately. However, considering the high demand for rentals and the relatively low vacancy rate, it might be more beneficial for investors to focus on long-term rentals to ensure a stable income stream.

## 5. Infrastructure & Growth Drivers Charlemont, VIC, has standard suburban transport access but lacks major projects on file that could drive significant growth. The supply pipeline is low, with price growth outpacing new supply, which could contribute to future price increases. The absence of significant infrastructure projects might limit the suburb's growth potential compared to areas with more development activity.

## 6. Bull Case If conditions hold or improve, with the 3yr growth forecast of 13.5% materializing, Charlemont, VIC, could see substantial capital growth. This, combined with its relatively high gross rental yield of 4.2%, makes it an attractive investment opportunity. The low vacancy rate and high rental demand further support the bull case, suggesting that investors could enjoy both capital appreciation and rental income.

## 7. Risks One of the key risks identified is the distance from the CBD, which may limit long-term capital growth potential. The supply pipeline is low, which is generally positive for price growth but also means there's limited new development to attract more residents and drive demand. The unemployment rate of 3.1% is relatively low, suggesting a stable economic base, but any significant increase could impact the rental market. The flood risk and bushfire risk are both classified as LOW according to the state planning portal overlay, which is a positive factor for investors.

## 8. The Play For investors looking to enter the Charlemont, VIC, market, the entry range could be around the median prices of $650,000 for houses and $416,574 for units. A minimum yield to target would be around the current gross rental yield of 4.2%. Watch signals include changes in the vacancy rate, rental demand, and any announcements of new infrastructure projects. The recommended strategy is to focus on long-term rentals due to the high demand and low vacancy rate, potentially considering units as a more affordable entry point into the market.

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.