Based on the provided information, The Entrance could be a worthwhile investment location, but requires further investigation.
Here's a breakdown to help evaluate:
Rental Market Overview:
- Houses: Rent for approximately $550 per week, yielding an annual return of 3.0%.
- Units: Rent for around $470 per week, offering a slightly better annual yield of 3.9%.
Capital Growth:
- Houses: Have seen an annual compound growth rate of 9.3%.
- Units: Have experienced an annual compound growth rate of 4.8%.
Key Considerations Before Investing:
While the growth rates appear positive, several factors warrant further investigation before making an investment decision:
-
Investment Goals: What are your specific investment goals? Are you looking for high rental income, strong capital growth, or a combination of both? This will influence whether houses or units are more suitable.
-
Risk Tolerance: How comfortable are you with risk? Higher growth potential often comes with higher risk.
-
Market Research: Thoroughly research current market conditions in The Entrance. Look at recent sales data, vacancy rates, and local economic trends. Talk to local real estate agents to get their insights.
-
Property-Specific Due Diligence: Any investment property must be carefully inspected.
- Consider the age and condition of potential properties.
- Assess potential maintenance costs.
- Evaluate the location within The Entrance (proximity to amenities, schools, transport etc.).
-
Vacancy Rates: Understand the typical vacancy rates in The Entrance for both houses and units. Higher vacancy rates can impact rental income.
-
Economic Factors: Research the economic outlook for the region. Are there any major developments or infrastructure projects planned that could impact property values?
Summary:
The provided data suggests that The Entrance has experienced positive rental yields and capital growth, particularly for houses. However, making a sound investment decision requires more comprehensive research, including a thorough understanding of current market conditions, property-specific due diligence, and alignment with individual investment goals and risk tolerance. Don't rely solely on historical data; understand the current and future prospects.
