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Merimbula

NSW 2548LGA: Bega Valley Shire

Investment Score

76

/100

AI Intelligence Summary

Merimbula is a premier coastal town in NSW's Bega Valley Shire, renowned for its pristine beaches, vibrant tourism industry, and relaxed lifestyle. Located approximately 480km south of Sydney, this picturesque destination attracts a diverse mix of retirees, sea-changers, and holiday home investors. The town features excellent amenities including Main Beach and Short Point Beach, a bustling wharf and boardwalk, regional airport connections, and hosts popular events like the annual Jazz Festival. The property market is driven by lifestyle buyers seeking coastal living and investors capitalizing on strong holiday rental demand. With its combination of natural beauty, established infrastructure, and growing reputation as a desirable coastal destination, Merimbula offers a compelling investment proposition for those seeking exposure to the NSW South Coast market.

Strengths

  • Premium coastal location with pristine beaches and water access
  • Strong tourism industry driving holiday rental demand
  • Regional airport providing direct connections to Sydney and Melbourne
  • Established medical facilities and aged care services

Opportunities

  • Growing demand for coastal lifestyle properties post-COVID
  • Expansion of holiday rental market through platforms like Airbnb
  • Infrastructure improvements enhancing regional connectivity
  • Development of retirement and aged care facilities

Considerations

  • Seasonal population fluctuations affecting local businesses
  • Limited public transport connectivity
  • Distance from major employment centers
  • Potential climate change impacts on coastal properties

Property Market

Median House

$920K

+8.5% 1yr

Median Unit

$650K

+6.8% 1yr

Median Townhouse

$780K

Rent (House)

$750/wk

Rent (Unit)

$520/wk

Days on Market

52

Vacancy Rate

2.8%

Auction Clearance

68.0%

Price Growth

Type1 Year3 Year5 Year
House+8.5%+28.2%+45.8%
Unit+6.8%+24.5%+38.2%

Rental Yields

House Yield

4.2%

Unit Yield

5.1%

Townhouse Yield

4.6%

Investment Scorecard

Overall Investment Score76/100
Growth Potential72/100
Cashflow Score68/100
Risk Score (lower = safer)65/100
Affordability Index45/100

Demand/Supply Ratio: 1.80

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Merimbula at median house price

Standard transfer
$35,930
First Home Buyer
$21,558

Save $14,372

Foreign buyer surcharge
$73,600

+8% surcharge

Annual rent income
$39,000

$750/wk

Interest (80% LVR @ 6.5%)
-$47,840
Other expenses (~2.5%)
-$23,000
Net rental position
-$31,840

Negatively geared

Tax benefit (39% MTR)
+$12,418

Reduces taxable income

After-tax holding cost
$19,422/yr

~$374/week

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

5-Year Hold

Est. value
$1.43M
Capital gain
$465,424
After discount
$232,712
CGT payable
$90,758

10-Year Hold

Est. value
$2.21M
Capital gain
$1.25M
After discount
$624,813
CGT payable
$243,677

Investor Quick Summary

Entry cost (stamp duty)

$35,930

After-tax yield

2.56%

Weekly holding cost

$374/wk

10yr CGT (est.)

$243,677

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

3,800

Median Age

52

Median Income

$58K

per annum

Family Households

42.0%

Professionals

35.0%

University Educated

28.0%

Unemployment

5.2%

Born Overseas

18.0%

Dwelling Mix

Houses: 72%Units: 22%Townhouses: 6%Total: 2,850

Lifestyle & Community

Walkability65/100
Public Transport3/10
Schools Rating7/10
Safety8/10
Family Friendly8/10
Cafes & Restaurants

28

Parks

8

Hospitals

1

Distance to CBD

480.0 km

Nearest Station: No direct rail service

Beach-focused lifestyle with excellent fishing, boating, dining, and regular community events including festivals and markets

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Data sourced from multiple sources. Last updated 28 March 2026.

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