Dromana

Hi All,
We have been looking at purchasing a block in Dromana and subdividing into 3townhouses. Not sure whether the objective will be to sell or rent the townhouses yet as it depends on what the market is doing when the development is completed.

Growth for Dromana has been excellent over the past year but am worried we will be buying at the peak of the cycle (at about 200K per block).

I know the Peninsula link will be completed by 2013 so am hoping that this will result in further capital growth and is my main reason for purchasing now.
What does everyone else think?

:confused:
 
Ummm.... ;);););)

I'm biased because I live here, but my opinion is that Dromana is the hidden jewel.

Why?

Our amenities are pretty good, the beach is terrific, within commute to Melb now, good views (on the hill). Dromana is steadily turning from a sleepy little coastal village full of blue haired retirees and holiday homes owned by Gino and his Dad, into a suburb for new families and others like me who want the quieter life away from the ratrace.

The old, crappy holiday homes are steadily being replaced by newer designer homes up on the hill (see my PPoR post for just one example :D), and lots of townhouse complexes down on the flat nearer the beach - larger blocks with sub-div potential.

The primary school is fantastic and filling up with kids (my boy goes there); they have a new sports stadium being constructed right now, and the High Schol is undergoing more improvements as well. reports from it are quite favourable, and there is Padua College in Rosebud and Mornington.

You have Mcrae right next door, which has gone through the roof over the last several years (Dromana has too but not as well known) but has no amenities.

On the other side you have Safety Beach; gone through the roof in recent years also, due to the Martha Cove marina and beach proximity, but has no amenities.

Portsea, Sorrento and even Blairgowrie are quite expensive now so people will look to buy in the next more affordable spot for their hol house, or to settle down.

Rosebud has tremendous amenities, but has the stigma of being nannaville, and boganville. It is going up in value, but it doesn't have the same appeal for some reason - it lags behind.

Tootgarook has no amenities, but the very fact that it is on the beach will make it go over time. There is nowhere else left down that way - unless you go out to overpriced St.Andrews - no amenities, miles from anywhere.

Rye (next one past Toot) is extremely busy in summer, and has good amenities, but has taken off a fair bit also.

With the development blocks in Dromana, you would want to be as close to the Pt.Nepean rd and the shopping centre as possble, but not in it.

Steer clear of anything up nearer the freeway - too far to walk to the beach and too noisy. The properties are cheaper there, but you are better off to spend more and be within 200m of the beach.
 
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Marc,
Thank you so much for your reply. :)

Yes your sentiments mark mine. Although I am not a local, we do visit often during summer and that's what grabbed me about the suburb (great amenities, fantastic beach, still somewhat affordable). And it really is not that far from Melbourne, especially once the new link goes in.

Just one question - in your opinion does $600k for a 900 sqm block sound reasonable? One block away from beach and 5 mins walk to shops?
We were going to buy last year - and should have!, as prices have skyrocketed.

That's why listening to your gut should also come into play with your investments.
 
Marc,

Just one question - in your opinion does $600k for a 900 sqm block sound reasonable? One block away from beach and 5 mins walk to shops?
We were going to buy last year - and should have!, as prices have skyrocketed.

That'd be the block which is for sale in Joan ave?

This is a fabulous spot, and I don't reckon it will go cheaply.

I'd say it's a bit too high ATM, and I haven't heard back from the agent (pathetic) to give me some details.
 
Hi Marc,
Yes - that was us. Lets see how we go with it now. All sorts of questions need answering and we need to start talking to the local real estate agents asap. Need to decide: single storey vs double storey, quality of fixtures and fittings, double vs single garages etc etc etc. Also whether we want to sell or hold at the end and most importantly who are we targetting - the retirees or the families that seem to be moving there for a sea change. Needs A LOT of research up-front before we proceed - luckily we are getting rent in the meantime.
:confused:
 
In the next street away from the shops (Seacombe st) Joan ave virtually runs into the Palm Cove complex of townhouses.

This would be a good yardstick to go by for what you need to do I believe.

We walk past it every other day and I see mostly retirees coming and going from it, but a couple of younger (maybe parents) people driving in and out.

So, I'd suggest sitting out the front of the place for a few days and see what happens. Don't go by a weekend traffic as you will see a lot of holiday types which could skew the stats. These will be part of your market as well though.

In my opinion, most of yer families moving into D-Romania are yer working families who won't be looking at shelling out half a mill or so for a townhouse. They are in yer basic doer-upper 3 bedders around town from my obs.

The townhouse brigade are mostly yer empty-nesters from the 'burbs who've sold the house in Donvale and can afford a townhouse with coin to spare to live off for a while, or as a holiday house.
 
Bayview,

"Gino and his dad" "d-romania" are you for real, it's the year 2011.

Molpookski,

Congrats on the buy hopefully you don't get too many objections from the trendy, with the times, locals that are close by!!
 
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