Menzies Creek VIC Property Investment

## 1. Investment Verdict We recommend a "Hold" strategy for Menzies Creek, VIC, with the single most important number justifying this decision being the 62.0/100 Investment Scorecard rating. This rating suggests that while Menzies Creek has some attractive features, it also has some drawbacks that prevent it from being a top-rated investment opportunity.

## 2. Market Overview The median house price in Menzies Creek is approximately $1,102,709, although this figure is pending peer validation. The median unit price is $727,056. The market has experienced a 3.5% price growth over the past year and a 6.2% compound annual growth rate (CAGR) over the past five years. The 3-year growth forecast is 13.5%, indicating a positive outlook for the suburb. However, with 92% of residents being owner-occupiers, the rental market may be relatively limited. The vacancy rate is 2.3%, which is relatively low, signaling a competitive market for renters.

## 3. Rental Market The median weekly rent in Menzies Creek is $395, with a gross rental yield of 1.9%. The vacancy trend is improving, and rental demand is high, which is positive for investors. However, the low yield may make it challenging for investors to achieve strong returns. The unemployment rate in the area is 3.6%, which is relatively low, suggesting a stable economic environment.

## 4. Short-Term Rental Opportunity Unfortunately, there is no data available on the short-term rental market in Menzies Creek, including nightly rates and occupancy rates. As a result, it is difficult to estimate the potential revenue from short-term rentals. However, given the low gross rental yield from traditional rentals, it is possible that short-term rentals may not be a significantly more attractive option.

## 5. Infrastructure & Growth Drivers The Angliss Hospital Expansion, currently under delivery, may drive growth and demand in the area. Standard suburban transport access is available, although there are no notable public transport upgrades or developments mentioned. The limited development pipeline, with supply pipeline rated as low, may contribute to price growth outpacing new supply.

## 6. Bull Case If conditions hold or improve, the upside scenario for Menzies Creek is promising, with a 13.5% 3-year growth forecast. This growth, combined with the stable market cycle and improving vacancy trend, could lead to strong capital gains for investors. Additionally, the high owner-occupier rate and low vacancy rate suggest a desirable and competitive market, which could drive up prices.

## 7. Risks One significant risk in Menzies Creek is the high bushfire risk, as indicated by the state planning portal overlay. This risk may lead to elevated insurance costs and mitigation requirements, such as Bushfire Attack Level (BAL) assessments. Investors should order a property-specific bushfire certificate before exchange to understand the specific risks and obligations associated with the property. The low supply pipeline may also limit the availability of investment opportunities, and the low gross rental yield may make it challenging for investors to achieve strong returns.

## 8. The Play For investors considering Menzies Creek, we recommend targeting a minimum yield of 2.0% to ensure reasonable returns. Given the limited data on short-term rentals, a long-term rental strategy may be more suitable. Investors should watch for updates on the Angliss Hospital Expansion and monitor the local market for changes in supply and demand. A recommended strategy would be to focus on high-quality properties with strong potential for capital growth, while carefully managing the risks associated with bushfire and low yields.

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