| YEAR | WEEKLY RENT | ANNUAL RENT | VS INTEREST | CF STATUS |
|---|---|---|---|---|
| Now | $500/wk | $26,000 | +$276 | POSITIVE |
| Year 1 | $533/wk | $27,690 | +$1,966 | POSITIVE |
| Year 2 | $567/wk | $29,490 | +$3,766 | POSITIVE |
| Year 3 | $604/wk | $31,407 | +$5,683 | POSITIVE |
| Year 4 | $643/wk | $33,448 | +$7,724 | POSITIVE |
PRICE LAG STANDOUT — only 2% price growth vs 6.5% rent growth = widest rent-to-price gap in VIC regional scan. Houses described as ~12% undervalued. 5.08% yield is borderline but the rent-ahead-of-price signal is the strongest in the state.
Yield is 5.08% — below 5.5% threshold; included specifically for the exceptional rent-to-price lag signal; confirm vacancy is trending lower before transacting
5.08% yield at $494k = ~$26k rent vs ~$25.7k interest = essentially breakeven. The REAL story: rents are 6.5% ahead of price, prices are ~12% undervalued. CGT indexation perfectly suits a 10-year hold of a fundamentally undervalued income asset.