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Kareela

NSW 2232LGA: Sutherland Shire

Investment Score

76

/100

AI Intelligence Summary

Kareela is a family-oriented residential suburb located 29km south of Sydney CBD in the Sutherland Shire. Known for its affordable housing options within the traditionally upmarket Sutherland Shire, Kareela attracts first-home buyers and young families seeking quality education, community amenities, and good transport links. The suburb features a mix of housing types including detached homes, townhouses, and unit developments, with median house prices around $1.2 million. Strong local amenities include Kareela Public School, multiple parks including Kareela Oval, and proximity to quality secondary schools like Jannali High. The area benefits from excellent transport connectivity via bus services and nearby Jannali railway station on the Illawarra line. The community is characterized by moderate population density, established professionals, and families with children, creating a stable residential environment. Property market trends show steady growth supported by the suburb's relative affordability, transport access, and family-friendly amenities, making it an attractive option for both owner-occupiers and investors seeking entry into the Sutherland Shire market.

Strengths

  • Affordable entry point into prestigious Sutherland Shire
  • Excellent transport connectivity to Sydney CBD via Illawarra line
  • Strong educational facilities including quality local primary and nearby secondary schools
  • Family-friendly community with parks, recreational facilities and sporting clubs

Opportunities

  • Ongoing Sutherland Shire infrastructure improvements
  • Potential for property value growth as Shire gentrifies
  • Development of local commercial amenities
  • Transport upgrades enhancing connectivity

Considerations

  • Limited high-end dining and entertainment options locally
  • Competition from other affordable Sutherland Shire suburbs
  • Potential for increased traffic as area develops
  • Limited commercial development compared to neighboring suburbs

Property Market

Median House

$1.20M

+7.2% 1yr

Median Unit

$720K

+6.8% 1yr

Median Townhouse

$950K

Rent (House)

$830/wk

Rent (Unit)

$665/wk

Days on Market

28

Vacancy Rate

1.8%

Auction Clearance

72.0%

Price Growth

Type1 Year3 Year5 Year
House+7.2%+22.5%+45.8%
Unit+6.8%+20.2%+42.3%

Rental Yields

House Yield

3.6%

Unit Yield

4.8%

Townhouse Yield

4.1%

Investment Scorecard

Overall Investment Score76/100
Growth Potential78/100
Cashflow Score72/100
Risk Score (lower = safer)72/100
Affordability Index68/100

Demand/Supply Ratio: 1.40

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Kareela at median house price

Standard transfer
$48,530
First Home Buyer
$48,530
Foreign buyer surcharge
$96,000

+8% surcharge

Annual rent income
$43,160

$830/wk

Interest (80% LVR @ 6.5%)
-$62,400
Other expenses (~2.5%)
-$30,000
Net rental position
-$49,240

Negatively geared

Tax benefit (39% MTR)
+$19,204

Reduces taxable income

After-tax holding cost
$30,036/yr

~$578/week

Based on 9.2% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$1.86M
Capital gain
$605,410
After discount
$302,705
CGT payable
$118,055

10-Year Hold

Est. value
$2.88M
Capital gain
$1.63M
After discount
$814,142
CGT payable
$317,515

Investor Quick Summary

Entry cost (stamp duty)

$48,530

After-tax yield

2.20%

Weekly holding cost

$578/wk

10yr CGT (est.)

$317,515

Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). Individual circumstances vary. This is general information only and not personal financial advice. Consult your CPA before making investment decisions. Local Knowledge Pty Ltd — Registered Tax Agent.

Demographics

Population

4,200

Median Age

38

Median Income

$95K

per annum

Family Households

68.0%

Professionals

45.0%

University Educated

38.0%

Unemployment

4.2%

Born Overseas

35.0%

Dwelling Mix

Houses: 65%Units: 25%Townhouses: 10%Total: 1,680

Lifestyle & Community

Walkability65/100
Public Transport7/10
Schools Rating8/10
Safety8/10
Family Friendly9/10
Cafes & Restaurants

8

Parks

6

Hospitals

1

Distance to CBD

29.0 km

Nearest Station: Jannali Station

Relaxed suburban lifestyle with access to parks, recreational facilities, quality schools, and community activities. Good balance of family-oriented amenities and transport connectivity to broader Sydney.

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Data sourced from multiple sources. Last updated 27 March 2026.

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