Edenhope VIC Property Investment

## 1. Investment Verdict We recommend a "Hold" strategy for Edenhope, VIC, with the single most important number justifying this decision being the 44.0/100 Investment Scorecard rating, indicating caution. This rating suggests that while Edenhope has some attractive features, it also has significant limitations that investors should carefully consider.

## 2. Market Overview The median house price in Edenhope is approximately $672,000, although this figure is pending peer validation and should be treated with caution. The 1-year price growth is -8.8%, indicating a decline in property values over the past year. In contrast, the 5-year compound annual growth rate (CAGR) is 7.0%/yr, suggesting that Edenhope has experienced steady long-term growth. The gross rental yield is 2.1%, which is relatively low compared to other suburbs. For buyers, the current market conditions may present an opportunity to purchase properties at a lower price point, while sellers may need to be more flexible with their pricing expectations.

## 3. Rental Market The vacancy rate in Edenhope is 3.0%, indicating a relatively stable rental market. The median weekly rent is $273/wk, and the gross rental yield is 2.1%. The demand rating is moderate, with an owner-occupier rate of 73%. These numbers suggest that Edenhope has a relatively balanced rental market, with neither extreme scarcity nor oversupply. Investors can expect a moderate level of demand for rental properties, but the low yield may limit the attractiveness of Edenhope as a rental investment destination.

## 4. Short-Term Rental Opportunity The median nightly rate for short-term rentals in Edenhope is $470/night, with an occupancy rate of 48%. This translates to an estimated annual revenue of approximately $82,320 (assuming 365 nights per year and 48% occupancy). However, considering the relatively low occupancy rate and high nightly rate, long-term rentals may be a more stable and attractive option for investors. The low occupancy rate suggests that Edenhope may not be a prime destination for short-term rentals, and investors should carefully weigh the potential benefits and drawbacks of this strategy.

## 5. Infrastructure & Growth Drivers Edenhope has standard suburban transport access, but there are no major projects on file that could drive future growth. The supply pipeline is low, with price growth outpacing new supply, which may limit the potential for long-term capital growth. The key risk identified is the distance from the CBD, which may limit long-term capital growth potential. The unemployment rate is 3.9%, which is relatively low and suggests a stable local economy. However, the lack of major projects and limited supply pipeline may constrain Edenhope's growth prospects.

## 6. Bull Case If conditions hold or improve, the 3-year growth forecast of 13.5% could materialize, driven by the low supply pipeline and steady demand. This could lead to an increase in property values, making Edenhope a more attractive investment destination. However, this scenario is highly dependent on various factors, including changes in the local economy, infrastructure development, and shifts in consumer preferences. Investors should carefully consider these factors and the potential risks and uncertainties associated with them.

## 7. Risks The key risks associated with investing in Edenhope include the distance from the CBD, which may limit long-term capital growth potential. The low yield of 2.1% also poses a risk, as it may not be sufficient to cover mortgage repayments and other expenses. The supply pipeline is low, which may limit the potential for new developments and infrastructure projects. Additionally, the vacancy trend is stable, but the moderate rental demand rating suggests that investors should be cautious about the potential for rental income. The flood risk and bushfire risk are both classified as LOW, according to the state planning portal overlay.

## 8. The Play For investors considering Edenhope, we recommend a cautious approach. The entry range for properties is approximately $600,000 to $700,000, based on the pending peer validation median house price. Investors should target a minimum yield of 2.5% to 3.0% to ensure a reasonable return on investment. Watch signals include changes in the local economy, infrastructure development, and shifts in consumer preferences. The recommended strategy is to hold existing properties and monitor market conditions closely, rather than actively seeking to purchase new properties in Edenhope.

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