Narooma
Investment Score
75
/100
AI Intelligence Summary
Narooma is a picturesque coastal town on NSW's South Coast, located within the Eurobodalla Shire approximately 345km south of Sydney. With a population of around 3,100, this seaside destination combines permanent residential living with a thriving tourism economy centered around its pristine beaches, excellent fishing, and the famous annual Oyster Festival. The town attracts a mix of retirees, sea-changers, and holiday home investors drawn to its relaxed coastal lifestyle and natural beauty. Property markets have strengthened significantly post-COVID as urban dwellers seek coastal escapes, with waterfront and ocean-view properties commanding premium prices. The local economy relies heavily on tourism, fishing, and agriculture, supported by quality amenities including Narooma District Hospital, local schools, golf club, and diverse dining options. While transport connectivity is limited with no regular public transport to major cities, the town offers excellent recreational opportunities including boating, surfing, and bushwalking. Infrastructure is well-maintained through Eurobodalla Shire Council, with adequate NBN and mobile coverage. The demographic skews older than the NSW average, reflecting its appeal to retirees and empty nesters seeking a coastal lifestyle change.
Strengths
- •Stunning coastal location with pristine beaches and excellent fishing
- •Strong tourism economy providing rental income opportunities
- •Growing sea-change migration trend boosting property demand
- •Quality local amenities including hospital, schools, and recreational facilities
Opportunities
- •Growing demand for coastal lifestyle properties post-COVID
- •Holiday rental market expansion with tourism recovery
- •Infrastructure improvements supporting growth
- •Potential for boutique tourism development
Considerations
- •Limited public transport connectivity to major cities
- •Economic dependence on tourism creating seasonal fluctuations
- •Aging population demographics
- •Higher cost of living due to tourist destination status
A decision, not just a search · Narooma
Does a promising suburb make this the right property decision?
No. Suburb data can help you shortlist, but it cannot establish the value, condition or suitability of a particular property. Compare buying, retaining your current property and waiting against your household cash flow, finance conditions and intended holding period.
Questions that could change the answer
- What would make this location unsuitable even if its median price rises?
- Could you meet the costs if income falls, the property is vacant or repairs are needed?
- Are you comparing a specific property with genuinely comparable sales—or only an area average?
Evidence to obtain—not yet verified here
- Comparable property evidence with transaction dates and relevant differences.
- Current loan terms, household commitments and a realistic cash-flow buffer.
- Property inspections, contract advice and ownership/tax advice where relevant.
Other options: Shortlist another property, retain what you own, reduce the budget or delay. Growth expectations alone are not a reason to proceed.
Next action: Ask a Property Advisor to connect the property evidence with your priorities, and identify the finance, tax or legal professional required for unresolved questions.
When to revisit: Revisit if the price, lending terms, inspection findings or household circumstances change.
General decision guidance—not a property assessment, personal recommendation or verified client result. Dates on surrounding market content apply to that content, not to checks on your property.
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Property Market
$750K
+8.5% 1yr
$485K
+7.2% 1yr
$620K
$605/wk
$475/wk
42
2.8%
68.0%
Price Growth
| Type | 1 Year | 3 Year | 5 Year |
|---|---|---|---|
| House | +8.5% | +28.0% | +45.0% |
| Unit | +7.2% | +25.0% | +42.0% |
Rental Yields
House Yield
4.2%
Unit Yield
5.1%
Townhouse Yield
4.6%
Investment Scorecard
Demand/Supply Ratio: 1.80
Demand exceeds supply — favourable for sellers
Tax & Financial Intelligence
CPA-grade analysis for Narooma at median house price
Stamp Duty Estimate
Save $28,280
+8% surcharge
Negative Gearing Position
Wage offset available until 1 July 2027
An established purchase today falls under the 2026 reforms. From 1 July 2027, losses on established residential property can only offset residential rental income or residential capital gains — not your salary.
$605/wk
Negatively geared
Reduces taxable income until 1 July 2027
~$308/week
Land Tax Exposure
~60% of median price
Below threshold
Annual: $6,900
CPA Note: Land tax applies to your total NSW land holdings, not individual properties. Portfolio holders should aggregate all investment land values.
CGT Projection
Based on 9.0% p.a. growth (from 5-year trend), CPI indexation + 30% minimum rate, 39% MTR
5-Year Hold
10-Year Hold
Investor Quick Summary
Entry cost (stamp duty)
$28,280
After-tax yield
2.56%
Weekly holding cost
$308/wk
10yr CGT (est.)
$302,039
Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). This calculator provides estimates for illustrative purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation. Tax laws, interest rates, and market conditions change frequently. Always consult a qualified professional — such as a CPA, mortgage broker, or financial adviser — before making financial decisions. Local Knowledge Group of Companies provides integrated advisory through Local Knowledge (CPA), Local Knowledge Finance (Mortgage Brokerage), and Local Knowledge Property (Licensed Agency).
Demographics
3,100
52
$48K
per annum
45.0%
28.0%
22.0%
6.2%
18.0%
Dwelling Mix
Lifestyle & Community
18
8
1
345.0 km
Nearest Station: No passenger rail service
Relaxed coastal living with excellent fishing, boating, surfing, golf, and bushwalking opportunities
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Data sourced from multiple sources. Last updated 11 April 2026.