The Wild Card

14 Herbert Street, Avondale Heights

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The Numbers

 

3 - Bedroom

1 - Bathroom

2 - Car space

 

Auction

$500,000 - $550,000 (Price guide)

Auction: September 17, 2016

Our Target Purchase Price

$590,000

This property is going to auction so there are many influencing factors outside of our hands. This is the price that we believe is the true value based on our market analisys.

Estimated Rental Return

$420/wk  

 

Gross Rental Yield (target price)  

3.70%

 

Outgoings

Water - $200 / qtr (approx.)

Council - $300 /qtr (approx.)

Investment Cash Flow (per month) 

Your rent received = $1,820

Your mortgage = $2,370*
Your outgoings = $166 (approx.)

BALANCE = -$716/month

*Based on your CBA pre-approval dated 9th of June

Zoning

General Residential Zone (RZ1)

 

This means: Maximum height restrictions that allow a maximum of 3 storey's - upto 9m heigh.

 

Renovation Allowance

• $25,500 (ballpark)

Spray paint bricks exteranl = $2.5k

Window furnishing throughout - $5k

Paint internal - $4k

Kitchen (new benchtop, cupboards, handles, tapware) = $3k

Lighting = $500

Bathroom resurfacing = $1,500

Trades (allowance) = $4k

Misc. (allowance) = $5k

Other Fee's

Professional: Approx. $1,750 

Stamp Duty: $32,057 (based on target price).

 

Milk Chocolate Fee's

• 0.9% on final sale price + gst ($5,310 + gst based on target price).

Total Outlay

Purchase Price = $590,000

Renovation = $25,500

Settlement Misc. Estimate = $1,500

Stamp Duty = $32,057

Professional Fee's = $1,750

Milk Chocolate (MC) = $5,310

MC Project Management = $2,550

MC Incidentals = $2,200

= $660,867  

 

The Recommendations

 

Inspections

Building & Pest - Approx. $450 (one off) 

www.easypathinspections.com.au

 

Insurance

Full landlord insurance inc. damage, loss of rent, theft, legal and contents

- Approx. $300 p.a

canstar.com.au/landlord-insurance

 

Quantity Surveyor

Tax depreciation report -

Approx. $400 (one off)

www.washingtonbrown.com.au

 

Leasing Agent

www.mamproperty.com.au

The Documents

 

Contract of Sale

TBC

The Stats

Distance to CBD

11.8km from the Melbourne CBD.

Population

The population in 2006 was 11,080. Recent data from the 2011 Census suggest the population is now 10,995.

Medium Property Price

The medium price for 3 bedroom houses in Avondale Heights is $658,000.

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Infrastructure Snapshot

 

  • The Avondale Heights Community Precinct Vision and Master Plan provides a long-term guide for the future use of the parcel of land at the corner of Military Road and Clarendon Street.

  • It aims to transform the land around Avondale Heights Library and Learning Centre and gymnasium into a wider Avondale Heights Community Precinct.

  • In addition to the existing library and learning centre, the final proposed uses for the site are:

  • An early years centre providing best practice early years infrastructure and services; with two preschool rooms and two maternal and child health consulting suites. 

  • A multi-purpose community facility expanding on the existing gymnasium and providing space for a range of local education and training, recreation, leisure, social and cultural activities.

  • A piazza functioning as a neighbourhood park for play and recreation as well as a wider civic gathering space and community hub.

  • An outdoor youth space providing outdoor recreational opportunities for young people of all ages and abilities.

  • A cafe/kiosk to support both the existing and proposed uses at the site and foster informal community gatherings and the precinct as a meeting place.

  • Parking and traffic management infrastructure will provide new traffic, transport and parking measures for the precinct. 

  • The development of the precinct is a long-term project that will take place over a number of stages, subject to funding.

 

 

The Details    

 

About the property
This property offers significant room for growth - hence why we have put this in the mix for your consideration. Sitting on 321sqm of land, it boasts 3 bedrooms, 1 bath and 2 car spaces. Character filled house with beautiful ornate features and room to grow. Sitting on the corner block, it showcases great value for money. Just 600m walk to the Maribyrnog River and parks, it offers a great alternative to inner city living. We do believe that there is some work required to this property, however, coming in at the lighter end of your budget, it is food for thought.
 
Agent Advertising Details:
• Boasting a corner aspect, with buses to Highpoint and Milleara Shopping Centre passing the door 
• A leisurely stroll finds Military Road shops, cafes and Avondale Primary, while peaceful Maribyrnong   River trails and parklands are nearby
• Enjoying a picturesque garden, the well-maintained home features an entry hall, spacious lounge,       dining area, rear courtyard/alfresco and a kitchen displaying modern stainless steel cooking                   appliances, generous counters and a large pantry
• Comfortable accommodation is provided by three bedrooms, two offering built-in robes, enhanced      by a pristine bathroom, modern floorboards, storage and tandem carport with automated access 
• Ducted heating and refrigerated cooling ensuring all-year-round comfort

Your Brief Specifics
• 1.5km from the train station - The closest train station is 6.4km. However, the 406 bus stop is on            Herbert St. This goes direct to Footscray Train Station, from there you catch the train into the CBD.        This is approx. a 40 minute trip door to door. Alternatively it's a 25 minute drive into the CBD.
• Land size 400sqm block / 120sqm house - The block size is 321sqm and the living space is approx.       122sqm (inc. the alfresco dining area and excl. the carport).
• 10% capital growth / 5% rental yield - We note that the last three years Avondale Heights has                 recorded 14.92% capital growth (average 4.97% per year). Positively thou, the last 12 months has         seen 15.20% growth for houses. The current house rental yield is 2.9%. There is no way to guarantee   that the property you buy will increase in value, but in order to increase your chances, we                       have carried out detailed research on the property and Avondale Heights in general. We estimate         that the rental yield will be below your ideal 5%. Overall Melbourne yields are low in comparison to     other markets. We believe as demand catches up with supply in Melbourne (following suit in                 Sydney), that demand for housing will grow and rental yields will increase. We believe after some         minor renovations this property will present as an attractive rental, appealing to quality tenants and   higher rental returns. 

Our thoughts
We understand that this might not fit your brief exactly, however, we feel it's worth presenting as food for thought. We believe it would require superficial cosmetic upgrades before it could be leased out. If you wanted to explore this further, we would be able to prepare a cost estimate on the work required after the inspection. From here you will be able to get an understanding of the cost of renovations, time to complete the work and rental appraisal.
If you were interested, we would recommend placing an offer prior to auction and negotiating a longer settlement to allow early access to the property for site measures etc. before taking ownership. We of course, could manage this process. 
We have provided a renovation breakdown for you and updated the total outlay costs based on this for your reference. We'd estimate the new value of the property after these renovations would be between $660,000 - $700,000. 
Suburb specific data
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Investment data
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RP Data Report
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Related News Articles 
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Comparable Sold Properties

6th of August

    68 Thompson St,      Avondale Heights 

VIC 3012

$680,000

570sqm

Comparable Properties for Rent

Current

         185 Military Rd,         Avondale Heights

VIC 3012

$420/wk

Locality

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* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.