Eynesbury VIC Property Investment

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## 2. Market Overview - Median house price: $729,000 - Median unit price: $565,491 - 1‑yr price growth: ‑6.7 % (price has fallen over the past 12 months) - 5‑yr CAGR: 5.8 % / yr (steady long‑term expansion) - 3‑yr growth forecast: 10.0 % (analysts expect a strong rebound) - Days on market: *Data not provided*

Signal: The recent 6.7 % dip creates a buyer‑friendly environment, while the 10 % forecast over the next three years signals a seller’s market returning soon. Buyers can negotiate now; sellers should prepare for price recovery.

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## 3. Rental Market - Median weekly rent: $450 / wk - Gross rental yield: 3.2 % - Vacancy rate: *Data not provided* - Demand rating: *Data not provided*

Implication: A 3.2 % yield is modest but acceptable for a suburb with upside price potential. Without vacancy data we cannot gauge immediate rental pressure, but the current rent level suggests reasonable demand.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: *Data not provided* - STR occupancy: *Data not provided* - Estimated annual STR revenue: *Data not provided*

Conclusion: With no STR metrics available, we cannot quantify the short‑term rental upside. At present, long‑term rental (LTR) remains the clearer path.

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## 5. Infrastructure & Growth Drivers - Known projects, transport links, employment base: *Data not provided*

What we can infer: The 10 % 3‑year growth forecast implies underlying drivers (e.g., new infrastructure or population inflow) are expected, but specifics are unavailable in the supplied data.

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## 6. Bull Case Assume the 10 % forecast materialises over the next three years:

• House price upside: $729,000 × 1.10 ≈ $801,900 (≈ $72,000 gain)
• Unit price upside: $565,491 × 1.10 ≈ $622,040 (≈ $56,500 gain)
• Potential rent lift: If weekly rent rises in line with price growth (10 %), rent could move to about $495 / wk, pushing gross yield to roughly 3.5 %.

The bull case hinges on the forecasted price rebound and a parallel rent increase.

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## 7. Risks | Risk | Quantified aspect (where available) | Comment | |------|--------------------------------------|---------| | Vacancy risk | Vacancy rate not supplied | Lack of data makes it hard to gauge rental security. | | Single‑employer dependency | No employment data provided | If the suburb relies on a dominant employer, any downturn could affect demand. | | Supply pipeline | No new‑development data | An influx of new dwellings could dilute price growth and yields. | | Rate sensitivity | Not quantified | Higher interest rates would increase borrowing costs and could pressure both prices and yields. | | Recent price dip | –6.7 % 1‑yr growth | A further decline could extend the buyer’s market and delay the forecasted rebound. |

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## 8. The Play - Entry range: Target purchases between $700,000 and $750,000 for houses (around the current median). - Minimum yield to target: Aim for ≥ 3.5 % gross yield to provide a buffer above the current 3.2 % level. - Watch signals: 1. Days‑on‑market trends (once data becomes available). 2. Vacancy rate movements. 3. Interest‑rate announcements. 4. Progress on any announced infrastructure or employment projects. - Recommended strategy: Acquire now at the discounted median price, hold for 3‑5 years to capture the projected 10 % price appreciation, and monitor rental market data to confirm the 3.5 % yield target. If STR data later emerges and shows strong nightly rates and occupancy, re‑evaluate the mix between LTR and STR.