Hi All,

Searched Doreen and had not seen an update for some time and therefore thought i'd start a thread.

Looking for some punters observations on Doreen.

I am not knowledgeable in the area, however, many of my clients are buying house and land packages in the area through SMSF.

They are a heap of developers operating in the area, with a heavy promotion to SMSF (same everywhere right?).

My thoughts or concerns are:
1. huge influx of H&L and risk of oversupply therefore impact valuation and capital growth in LT
2. For SMSF you need to rent, many existing residents are families, and therefore risk of a high vacancy rate. Noticing developers offering a 2 years rental guarantee which is a concern for me.
3. Valuation: some of the vals that developers are offering seem inflated (based on past sales in the area) and risk of valuation issues at settlement
4. Capital growth over the last 5 years have not been fantastic, I believe capital growth forecast is positive going forward however the lack of growth in the past is a concern

And most importantly:
No train network! with no major plans for a expansion to the Murnda line, so a heavy reliance on cars

However, I do note, there are development in terms of the building of the shopping centre, schools etc

They are some brief uneducated thoughts of myself based on limited research, can any of the knowledgeable posters assist me here with your thoughts and more and more clients are buying in this area (note - not based on my recommendation).

Thanks guys

Ivan Filipovic
Redwood Advisory
 
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