MMP111 Undertaking A Property Analysis - Assignment Solution

• Introduction

Narre Warren is a south east suburb of Melbourne and is 40 km away from the central business district. It is under the local government of City of Casey. In 2016 it was found in the census that there was a population of 26,621 people in Narre Warren and the density of the population was more than 2,000 persons per sqm. It is easy to access central business district by train (Pakenham railway line) as there is a railway station with enough parking space and within the suburb there is an extensive network of busses traveling to all key locations around the area. Also, Fountain Gate shopping Centre, the second largest shopping Centre in Australia is also situated in Narre Warren. 

In the following sections of the report we will look at the local residential property market in Narre Warren, then two properties are selected from Narre Warren one which is a free standing house and the other is a unit. Then we look at the suitability of the unit to be rented for short stay tenants through Airbnb. A financial analysis is done to determine the financial viability of both renting long term and short term. 

• Local Market Data

Narre Warren is a multi-cultural rapidly growing south eastern suburb . The area is mostly populated by families with both young and old people and as a retirement area for most older people. The area is popular among growing families because of its affordable housing rates for free standing houses, two-story houses which all include significantly large gardens and broad nature strips in the area. Due to the increasing number of families with young children there is a substantial number of schools in the locality. Some of schools in the vicinity include Hark away primary school, Fleetwood primary school and Timbarra primary school etc. (real-estate 2018).

The two main types of public transport operating in Narre Warren are trains and buses. The train line operating  is the Pakenham line and the premium train station is situated in Webb street. Trains are mostly used to travel to Melbourne’s central business district and it is about a 45 minutes train ride. Adjoining the railway station conveniently situated is the bus stop from where buses can be taken to and from many surrounding areas and the Fountain Gate shopping Centre which is a main shopping precinct  for the area including dinning out and the Village Cinemas. Surrounding the railway station there are many shops and restaurants available for the people. Drivers can easily access the Monash Freeway to travel to the city and other surrounding suburbs (real-estate 2018). 

Narre Warren is well situated with  few minutes’ drive to both the Dandenong ranges and the Frankston beaches. It possible to get to Dandenong ranges in 25 minutes and to the Frankston beached in 20 minutes. There are many attractions and places to visit and spend the day with family closer to home as well. The Ray Bastin Reserve is an ideal place for the family to spend some time together as it offers something for everyone. There is playground to play a bit of cricket or throw a ball around, the skate park and BBQ and sitting area with tables which can be easily accessed by public transport. The Casey Aquatic and Recreation Centre also has a lovely pool to spend some time during the warm days with some park lands and bike paths as well (TripAdvisor 2018).