Stawell VIC Property Investment

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## 2. Market Overview - Median house price: $381,000 - Median unit price: $225,000 - 1‑yr price growth: +17.5% (strong recent upside) - 5‑yr CAGR: +3.2% per year (steady longer‑term trend) - 3‑yr growth forecast: +13.5% (optimistic outlook) - Days on market: data not supplied

Signal: Buyers benefit from the 17.5% recent price jump but still face affordable entry points relative to many regional markets. Sellers can command higher prices, yet the lack of days‑on‑market data means we cannot gauge how quickly properties are moving.

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## 3. Rental Market - Median weekly rent: $410 / wk - Gross rental yield: 5.6% - Vacancy rate: data not supplied - Demand rating: data not supplied

Implication: A 5.6% yield places Stawell in the upper‑mid range for regional Victoria, supporting a buy‑to‑let strategy. Without vacancy or demand data we cannot quantify risk, but the yield alone suggests income‑oriented investors can achieve respectable returns.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: data not supplied - STR occupancy: data not supplied - Estimated annual STR revenue: data not supplied

Conclusion: With no STR metrics available, we cannot compare long‑term rental (LTR) versus short‑term rental (STR). The known 5.6% LTR yield remains the benchmark for investors.

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## 5. Infrastructure & Growth Drivers - Known projects, transport links, employment base: data not supplied

Observation: In the absence of specific infrastructure or employment information, we cannot identify concrete demand drivers or constraints for Stawell.

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## 6. Bull Case Assume the 3‑year growth forecast of +13.5% materialises and the rental yield stays at 5.6%:

• House price upside: $381,000 × 1.135 ≈ $432,000 (≈ +13.5% over three years)
• Unit price upside: $225,000 × 1.135 ≈ $255,000 (≈ +13.5% over three years)
• Annual rent (house): $410 × 52 = $21,320 → gross yield stays near 5.6%

If the local economy adds jobs or new infrastructure, price appreciation could exceed the forecast, pushing house values toward $450,000+ and further boosting investor equity.

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## 7. Risks | Risk | Detail (numbers where available) | |------|-----------------------------------| | Vacancy risk | No vacancy data – a rise above typical regional levels could erode the 5.6% yield. | | Single‑employer dependency | Employment data not provided – reliance on one major employer would amplify downside if that employer contracts. | | Supply pipeline | No data on new builds – a surge in housing supply could pressure rents and price growth. | | Rate sensitivity | Higher interest rates increase borrowing costs, potentially dampening buyer demand and reducing price momentum. |

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## 8. The Play - Entry range: Houses around $381,000; units around $225,000. - Minimum yield target: ≥ 5.6% gross (to match the current market benchmark). - Watch signals: 1. Publication of vacancy rates for Stawell. 2. Announcement of any major infrastructure or employment projects. 3. Changes in regional interest‑rate spreads that affect buyer affordability. - Recommended strategy: Hold existing positions and consider new purchases only if the price is at or below the median and the projected yield remains ≥ 5.6%. Prioritise long‑term rental over short‑term rental until STR data becomes available. Monitor the above signals to decide when to transition to a more aggressive (Buy) stance or to exit (Avoid).