Drouin, Vic. Townhouse

[Jakk]

G'Day all,

Spurred on by the thread of would you do business with like minded people, I decided to post details of a NEW Townhouse that I have For Sale in Drouin.

As this is my first post on Caveat Emptor, I apologise in advance if any of the required information is not included.

So here's the Deal:

Brand New single storey 2 bedroom townhouse/unit, 1 of 2 on corner allottment with a double carport.

Unit is just a bit over 9 squares and will include vinyl wrap kitchen, all floor coverings, (carpets and ceramics), ducted heating to 6 points. vertical louvres to all windows, driveways, paving, fences, clothes line and landscaping.
Practically turn key at settlement, move your tenant straight in.

All windows are double glazed aluminium awning except laundry, toilet and bathroom, which are sliding normal glazed aluminium.
The unit comes with a four star energy rating and is being constructed by a local award winning builder (MBA Award 1999, 2000). completion date approx August 2003.

I said there was 2 on the block, the other has just been sold for $155,000 but it is about 4 sq. metres larger.
(purchased by a single early 40s woman who is the chaplan at a nearby catholic school and will owner occupy).

Price is $149,500 and could easily be rented out for $145 - $150 per week although 1 agent reckons $160 - $165.

Where do I fit in, I am the owner/developer.
How much is in it for me? enough
Why aren't I keeping it? Not Slummy enough for me and I need the money to develop some other properties.

Also considerable stamp duty savings at this time as work has just commenced.

An interior designer has been retained to co ordinate colours/fittings but at this early stage all internals can be changed.
I will include the cost of consutation with the designer to assist in the interior colour selection if desired by the purchaser
The external colours that are not negotiable now are,
bricks: Selkirk Breamore Blend Tumbled
Roofing: Colorbond - Mountain Blue
Fascia & Aluminium Window Frames: Colour -Primrose
Guttering and Capping: Colour - Tuscan Red

OK folks, go to town, ask away

regards

[always_learning]

Drouin, how many people live there, from memory its a few more than in KooWeeRup? (the dark hole where I had the misfortune to grow up). What is the average price for a standard 3bd BV house on a standard block?

What about capital gains/growth in the area? Any major businesses opening up or closing down?

What approximately would be the stamp duty?

[Jakk]

Originally posted by always_learning
Drouin, how many people live there, from memory its a few more than in KooWeeRup? (the dark hole where I had the misfortune to grow up).

Actually a lot more than Koo Wee Rup, population now exceeds 6,000

What is the average price for a standard 3bd BV house on a standard block?

3BR BV around 15-20 years old 14 squares $185,000 - $200,000 +

What about capital gains/growth in the area?

last 18 months around 40% conservatively

Any major businesses opening up or closing down?

Last Major business was Bendigo Bank, 12 months ago.
Also over 1,000 blocks either approved or going through planning at the moment. starting price on newly subdivided blocks say 650m2 in size, aint much under $55,000. Average around $65,000+

What approximately would be the stamp duty?


on the other unit sold last week, have put down value to date on contract as $30,000 therefore stamp duty at present time around $500 but check tables as this is from memory
stamp duty applies to value as at contract date, the earlier you buy the more you save


regards

[Mrs Bird]

Hi Jakk


Is that your plan of the unit in Forrest rd ... I did a search for house prices in Drouin and found the above one.

You mentioned that all windows are double glazzed is that because it is on a main rd or to comply with the energy ratings etc.

Drouin to my knowledge is a small inland country town.

Are there any employment opportunities, what is the main industry in the area, are there any big developments about to happen? Are there major shopping centres schools transport etc...I suppose what I am asking is a brief spiel about Drouin.


Thanks Mrs Bird

[Mike]

Good first-up post Jakk. The numbers look good, too. So should get plenty of serious interest.

Now for a slight criticism that applies to many deals posted on CE. Mrs Bird is on the right track here. Capital growth potential rates very highly in most investors mind when considering a deal. In my opinion, you don't really understand the deal unless you understand the drivers of capital growth and rental demand. If you can enlighten us in those two key areas, Jakk, I'd say that you will overcome most resistence to this deal.

What drives capital growth in the town and locale of the property?

What drives rental demand for that type of property?

Regards, Mike

[Dose]

I agree with Mike. I'd like to know what drives capital growth in that area Jakk.
I went to school in Warragul 20-odd years ago and recently took my kids there to have a look around. Warragul has not changed much in those 20 years but I did notice that Drouin had developed quite a bit.

[Ruby]

Well I’ll add my point of view on the area.

I’ve researched West Gippsland fairly extensively over the last couple of years and prices have been going through the roof there.

Warragul had a growth rate of 27.63% and Drouin 13.23% last year.

Yes Drouin is a rural town….but it is on the main Melbourne rail line, is close to Warragul, which is the major town in the Baw Baw Shire. It’s easy travelling distance to the SE growth corridor and the large industrial areas of Dandenong. It’s a very pleasant town, with good services and an amazing amount of new houses being built.

Info on Drouin can be found on the Baw Baw Shire website:
http://www.bbsc.vic.gov.au/i931.htm

or a list of services and facilities can be found at:
http://www.bbsc.vic.gov.au/drouin.htm

and my favourite property search for regional VIC is:
http://www.propertyguide.com.au/res.asp

I’m surprised you didn’t see much change in Warragul in 20 years, Dose. I’ve noticed changes in the time I’ve been researching there, but maybe we aren’t looking at it through the same eyes.

Both Warragul and Drouin are on my list of top Gippsland towns, mainly because of their closer proximity to Melbourne. You could certainly do worse!

Ruby :)

[Peter Parker]

Drouin has had consistently higher long-term population growth (1981-1996) than Warragul. I don't know about recent years.

However a concern is when they build the regional fast rail.

Given Drouin's proximity to Warragul, will the fast trains bypass Drouin in favour of Warragul due to the latter being a larger town?

Peter

[Peter Parker]

Oh and another thing, Drouin is less than 100km from the city.

Warragul isn't.

Do people think that 100km is a psychological barrier in how people perceive distance from the city?

If so, a 96km town might be better buying than a 104km town.

[Mike]

Hi Jakk,

There is a downloadable map on the Baw Baw Shire website that Ruby mentioned. What is the address of your unit and nearest crossroad? Which street(s) contain the main retail area. How far to the main shopping precinct? Can you post any pictures?

Regards, Mike

PS The strange thing about the downloadable map is that Princes Way doesn't appear in the street index although that is where most of the retail appears to be. There is a Princes Avenue mentioned. Any clues, Jakk? Also the exact location of the train station doesn't appear on the map either.

[Jakk]

Originally posted by Mrs Bird
Hi Jakk

Is that your plan of the unit in Forrest rd ... I did a search for house prices in Drouin and found the above one.

correct listings are:
www.realestate.com.au no: 1548065
www.domain.com.au no: 2003896896
www.property.com.au no: 4212874

You mentioned that all windows are double glazzed is that because it is on a main rd or to comply with the energy ratings etc.

To comply with energy ratings, definately not on a main road

Drouin to my knowledge is a small inland country town.

Not so small anymore

Are there any employment opportunities, what is the main industry in the area, are there any big developments about to happen? Are there major shopping centres schools transport etc...I suppose what I am asking is a brief spiel about Drouin.


The big developmemts that are about to happen are the amount of subdivisions that are proposed or currently approved. In recent discussions with Town Planning, I was told there are over 1,300 blocks to be either approved or in planning awaiting approval in various subdivisions.

No major shopping centre in Drouin, commercial is predominately a convenience strip situated on Princes Way of about 80 businesses although there is a newish 7 day licensed supermarket in Hope Street that compares in size to a smaller safeway or Coles. By the way, Warragul is only 7 kms up the road and it has Coles, Safeway, The Warehouse, McDonalds, KFC, Subway, Harvey Norman and a million other shops to spend money at (maybe not quite a million), maybe I should get my wife to answer the shopping questions (she doesn't seem to have too much trouble spending the hard earned). There are 5 real estate offices in Drouin and about 10 in Warragul. Police stations in both towns and there is always a speed camera lurking around somewhere (got 2 points left)
plenty of schools and churches, there is electric train service and I do see buses and taxis on the road.

Thanks Mrs Bird

regards

[Jakk]

Originally posted by Mike
Hi Jakk,

There is a downloadable map on the Baw Baw Shire website that Ruby mentioned. What is the address of your unit and nearest crossroad? Which street(s) contain the main retail area. How far to the main shopping precinct? Can you post any pictures?


The development is on the corner of Ferris Street and Forrest Street.
Princes Way, (the old highway contain the main commercial area, from Sinclair Avenue through to Bank Place (approx)

can I post any pictures? Mike, the extent of my technological abilities regarding computers on a scale of 1 to 10 is about minus 22


PS The strange thing about the downloadable map is that Princes Way doesn't appear in the street index although that is where most of the retail appears to be. There is a Princes Avenue mentioned. Any clues, Jakk? Also the exact location of the train station doesn't appear on the map either.

Princes Avenue is residential and train station is located south of Princes Way and west of and adjoining South Road

regards

[Jakk]

Originally posted by Ruby
Well I’ll add my point of view on the area.

I’ve researched West Gippsland fairly extensively over the last couple of years and prices have been going through the roof there.

Ruby :)

Ruby, I have decided to also appoint you as my agent, you seem to know more about this place than I do.

In future, could everyone please direct all enquiries to Ruby (just joking)

regards

[Jakk]

Originally posted by Peter Parker
Drouin has had consistently higher long-term population growth (1981-1996) than Warragul. I don't know about recent years.

However a concern is when they build the regional fast rail.

Given Drouin's proximity to Warragul, will the fast trains bypass Drouin in favour of Warragul due to the latter being a larger town?

Peter
Peter, Thanks for that info, in actual fact the population of Drouin has exploded in the last 2 years.
I suspect the reasons are that Drouin is on the outer fringe of the fast developing South Eastern growth Corridor and the area offers to the resident a great lifestyle.
Small country feel but with all amenities and only a hop step and jump to major centres like Fountain Gate.
The land in Drouin is beautifully undulating and I believe still affordable.
Although I am unaware of any major industry up here, (been a while since I looked for a job), a lot of people commute as Dandenong is only about half an hour away.
Quite a few up here work in the city and travel by train but I reckon I'd last about 3 days if I had to do this.

Also I do believe that Warragul has been tipped to be one of the stations that the fast rail will stop at, we dont regard this as a negative as Warragul is only a few minutes drive up the road and I do mean only a few, ( 4-5 )

regards

[Freddy]

Jakk ,

Shhhhhhhhhhhhhh !!

What are you doing telling everyone about our great little money tree down here in Gippsland !!!!!!!!!!!

Let all those other characters fight each other for the Qld. coasts and leave us to make money where the grass is green, the cows are fat and and the populations are booming.

Freddy :mad:

[Jakk]

Originally posted by Freddy
Jakk ,

Shhhhhhhhhhhhhh !!

What are you doing telling everyone about our great little money tree down here in Gippsland !!!!!!!!!!!

Let all those other characters fight each other for the Qld. coasts and leave us to make money where the grass is green, the cows are fat and and the populations are booming.

Freddy :mad:

Freddy, tsk, tsk, tsk

Didn't your mother ever say to you
"You gotta do sharing Freddy"

regards

[Freddy]

Didn't your mother ever say to you
"You gotta do sharing Freddy"

You mean "sharing" like Telstra and AMP where you loose half the money you make in Property?

:D
Regards

Freddy

[Rickardo]

Not always Freddy

I made 46% off AMP in a bit over a month :)

Jakk, When you said Bendigo Bank was the last big business, i assume u meant opening not closing?

[Mike]

According to the Baw Baw Shire Council website, Drouin has ANZ and Westpac while Warragul has Bank Of Melbourne, Commonwealth Bank Australia, National Australia Bank Ltd, Westpac Bank. No mention of Bendigo Bank.

Mike

[Jakk]

Originally posted by Folken


Jakk, When you said Bendigo Bank was the last big business, i assume u meant opening not closing?

Correct Folken , opened April 12 last year

Originally posted by Mike


According to the Baw Baw Shire Council website, Drouin has ANZ and Westpac while Warragul has Bank Of Melbourne, Commonwealth Bank Australia, National Australia Bank Ltd, Westpac Bank. No mention of Bendigo Bank.

Mike
Warragul also has a Bendigo Bank and ANZ

Also 2 weeks ago a new United 24 hour FoodStore (Petrol/Convenience Store) opened in Drouin.

regards

[Bill.L]

Hi Jakk,
I know a little bit about Drouin as I was working there for a year a few years back, OK many years back(23). I suppose it's changed.

I do however have a problem with this deal. I have a great admiration for your property investment skills, style and knowledge. Which leads me to the big question..... If Jakk's SELLING, why would I want to buy??!!!:eek:

bye

[Mike]

Hi Bill,

I have no problem with that question. As you are aware there are always pockets of growth to be found. It seems Jakk has found a pocket of growth in Drouin and is developing a block there. Developers are in the business of trading not holding, otherwise they wouldn't be developers, they would be owner-builders.

Regards, Mike

[Jakk]

Originally posted by Bill.L
Hi Jakk,
I know a little bit about Drouin as I was working there for a year a few years back, OK many years back(23). I suppose it's changed.

I do however have a problem with this deal. I have a great admiration for your property investment skills, style and knowledge. Which leads me to the big question..... If Jakk's SELLING, why would I want to buy??!!!:eek:

bye

G'Day Bill, good question and to answer it, I will tell you why I am selling.
At the start of this year, I looked at every property that I own and decided that I could develop/redevelop/renovate a lot of my portfolio and by doing this, I could add a substantial amount to my net worth without acquiring any more property. (when you receive a council rate notice for a paddock somewhere and you realise that you had forgotten about owning it.....tis time to clean up your own backyard)
I have quite a few projects planned for this year and basically, I need funds. I hate borrowing for the construction period (as I have done for this development) because repayments have to be made whilst there is no income from the property being developed. I usually do this sort of development, sell one townhouse and keep the other, but in this case I am selling both.
Believe me, the reason is purely a financial one, I need a heap of sovereigns for what I intend to do this year.

.....and Bill, I also thank you for all the nice things you said at the start of your post.....for that I'll throw in a free dishwasher.
Contracts are on their way to you.

regards

[Ruby]

Originally posted by Mike
According to the Baw Baw Shire Council website, Drouin has ANZ and Westpac while Warragul has Bank Of Melbourne, Commonwealth Bank Australia, National Australia Bank Ltd, Westpac Bank. No mention of Bendigo Bank.

Mike

You'll probably find a more up to date listing in the Drouin Directory Mike :)

http://www.drouindirectory.com/directory.html

Ruby :)

[Mike]

Good find, Ruby. Scenic photos look great. Pretty area. The map is better than BBSC map.

[Kevmeister]

Hi Jakk,

What kind of tenant would this townhouse appeal to? What would be the likely tenant for this type of unit?

[Bill.L]

Thanks for the reply Jakk

I had a feeling the answer would be along those lines and the question was a little tongue in cheek. Though it probably niggled at a few others who were to polite to ask.

The dishwasher thrown in sounds good, but I require built-in dryer in laundry, jacuzzi,built in plasma screen in loungeroom, and seaviews from top balcony:D
That reminds me, I have friends just down the road in Seaview. I would prefer better seaviews than they get, or maybe my glasses just aren't up to it.

bye

[Jakk]

Originally posted by Kevmeister
Hi Jakk,

What kind of tenant would this townhouse appeal to? What would be the likely tenant for this type of unit?

G'day Kevmeister,

That's the hardest question I have been asked so far, I tend not to consider that end of the equation, I am guided by my property manager with regards to determining who is a suitable tenant.

i would suggest though, a young couple, a couple of guys or gals, a single mum or dad with 1 or 2 kids or maybe a seperated/divorced dad that only has custody of the kids on odd weeks/weekends or maybe a professional single person.

Doctor, Lawyer, Indian Chief
Cleaner, Maid or Reformed Thief
I will rent to anyone as long as they can pay the rent and look after the joint.

regards

[bundy1964]

Originally posted by Folken
Not always Freddy

I made 46% off AMP in a bit over a month :)

Hi Folken

With the demerger are you :) :mad: :eek: or :confused: now?

bundy

[Jakk]

G'Day All,

Just a note to let you know, this townhouse is now SOLD

Regards

[Rickardo]

hey bundy1964,

Sold out just before the demerger so i was lucky, could have lost a lot.

Congrats on selling Jakk. Hope your development plans for this year go well.

[Mike]

Congrats Jackk - was the buyer a forumite? Don't forget to add piccies when available.

Regards, Mike

[Jakk]

Originally posted by Mike
Congrats Jackk - was the buyer a forumite? Don't forget to add piccies when available.

Regards, Mike

Thanks Mike & Folken,

The buyer was actually a friend of a lurker on here. They are buying for investment and I believe this is IP number 4 for them.
I reckon they'll do well, wouldn't be surprised if they picked up $20K on this townhouse by the time it's completed.

They have also stamped their name on one of a 3 townhouse development that I hope to commence shortly.

By the way, contract price was $145,000 but I took out the Ducted Heating and the Window Furnishings and added a wall furnace.
Also agents commission was adjusted to 2% as all they had to do was put it on paper.
Pics will be flowing a plenty when there is something there to photograph.

regards and thanks to all for feedback and positive comments

[Jakk]

Originally posted by Mike
Congrats Jackk - was the buyer a forumite? Don't forget to add piccies when available.

Regards, Mike

now nearing completion, photo posted in gallery, was sold for $145,000, now worth $175,000 plus.
If I keep doing this sort of thing, they'll start calling me Saint Jakk.

regards

[Mondie]

[QUOTE]Originally posted by Jakk

They have also stamped their name on one of a 3 townhouse development that I hope to commence shortly.
QUOTE]

Hi Saint Jakk,

Have you progressed any further with this development?

Cheers Simon

[Jakk]

Originally posted by Mondie
[QUOTE]Originally posted by Jakk

They have also stamped their name on one of a 3 townhouse development that I hope to commence shortly.
QUOTE]

Hi Saint Jakk,

Have you progressed any further with this development?

Cheers Simon

G'day Simon,

As this is possibly the best positioned townhouse development site in Drouin, once the permits were approved, the buyers came out of the woodwork. Positioned about 250 metres from the town centre, the demand for the townhouses on this site was unbelievable.
Anyway, to cut a long story short, one of the local agents asked if I would sell the site undeveloped, I told him that everything was for sale at a price and that afternoon, my price was reached.
I figure there is still another $150K left in it for the next bloke so everyone is a happy chappy.

There is a photo of this landmark Drouin property at the link below and if one looks to the right of the photo, they will see that fine specimen of automotive engineering excellence, my EA Series II Ford. (OVER 400,000 KMS and still goes like a rocket)

http://www.somersoft.com/forums/photopost/showphoto.php?photo=518

regards

[Ruby]

Originally posted by Jakk
and if one looks to the right of the photo, they will see that fine specimen of automotive engineering excellence, my EA Series II Ford. (OVER 400,000 KMS and still goes like a rocket)


And to think you nearly lost it forever, at one stage Jakk!! Now that was indeed a dark day........but all's well that ends well. :D

For anyone that can't remember that fateful day 12 months ago.....here's the link.

http://www.somersoft.com/forums/showthread.php?postid=1900#post1900

Ruby :)

[Mondie]

Thanks Jakk.

Gotta be happy with that!

[Spiderman]

Also over 1,000 blocks either approved or going through planning at the moment. starting price on newly subdivided blocks say 650m2 in size, aint much under $55,000. Average around $65,000+

Was in the area (Warragul) yesterday. Some subdivisions both on the fringes and near the middle of town. Typical asking prices for standard house blocks are now $85 - 90k. Prices in the two towns seem roughly comparable.

Rgds, Peter