Cabarita VIC Property Investment

CAUTION — 1.7% gross yield on a $599,000–$672,000 (sources disagree, range shown — do NOT quote a single number) median.

Cabarita has compounded at 4.1%/yr over 5 years. Median sits in the $599,000–$672,000 (sources disagree, range shown — do NOT quote a single number) band today. Properties are sitting on market for 45 days (roughly balanced conditions).

• Median house: $599,000–$672,000 (sources disagree, range shown — do NOT quote a single number) | Units: $0
• Gross yield: 1.7% | Net yield: 0.2%
• 5yr price CAGR: 4.1%/yr | 3yr forecast: 3.7%/yr
• Population: 482 | Owner-occupier rate: 79% | Affluence: Below Average

• Supply pipeline: Moderate — Development activity consistent with long-term averages

• Vacancy: 3.0% (stable) | Rental demand: Moderate
• Median weekly rent: $220/wk | Days on market: 45 (stable)
• Tenant market — vacancy elevated, negotiate hard on rent.

• Median nightly rate: $434/night | Occupancy: 48%
• Estimated annual STR gross: ~$75,970/yr
• vs long-term rent: $11,440/yr (+564% STR premium — factor in higher management costs)

• No major confirmed infrastructure projects on record.
• Transport: Standard suburban transport access

If Cabarita maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $772,800 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Cabarita pull back 10-15% from $672,000, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

• Distance from CBD may limit long-term capital growth potential

• Sebastopol (VIC): $475,000 median, 4.5% yield, 14.0% 1yr growth
• Ardmona (VIC): $672,000 median, 1.9% yield, 7.5% 1yr growth
• Norlane (VIC): $510,000 median, 4.2% yield, 10.6% 1yr growth

Cabarita carries elevated risk that outweighs potential returns at current levels. A stable market combined with moderate vacancy risk warrants caution. Avoid new acquisitions unless significant discount to median pricing is achievable. Re-evaluate if vacancy falls below 2.5% or annual price growth exceeds 3%.

• Entry range: $604,800 – $739,200
• Minimum gross yield to target: 4.5%
• Watch signal: vacancy dropping below 2% and days on market falling below 35

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