The Cottage
50 Hex St, West Footscray
The Numbers
2 - Bedroom
1 - Bathroom
1 - Car space
Auction
$570,000 + (Price guide)
Auction; September 24, 2016
Our Target Purchase Price
$640,000
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
$460/wk
Gross Rental Yield (target price)
3.73%
Outgoings
Water - $315 / qtr (approx.)
Council - $460 /qtr (approx.)
Investment Cash Flow (per month)
Your rent received = $1,993
Your mortgage = $2,570*
Your outgoings = $258 (approx.)
BALANCE = -$835/month
*Based on your CBA pre-approval dated 9th of June
Zoning
General Residential Zone (GRZ1)
This means: Maximum height restrictions that allow a maximum of 2-3 storey developments only.
Opportunity: You can look to add an additional level to the dwelling. Potentially adding 1-2 bedrooms that would increase the value of your property (based on current values of 4 bedroom homes in West Footscray).
Renovation Allowance
Not required at this stage
Other Fee's
Professional: Approx. $1,750
Stamp Duty: $35,173.60 (based on target price).
Milk Chocolate Fee's
• 0.9% on final sale price + gst ($5,760 + gst based on target price).
Total Outlay
Purchase Price = $640,000
Settlement Misc. Estimate = $1,500
Stamp Duty = $35,173.60
Professional Fee's = $1,750
Milk Chocolate = $5,760
Milk Chocolate Incidentals = $1,500
= $685,683
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. $300p.a
canstar.com.au/landlord-insurance
Quantity Surveyor
Tax depreciation report -
Approx. $400 (one off)
Leasing Agent
Jas Stephens Real Estate - Yarraville
The Documents
Contract of Sale
The Stats
Distance to CBD
9.5km from the Melbourne CBD.
Population
The population in 2006 was 9,776. Recent data from the 2011 Census suggest the population is now 10,222.
Medium Property Price
The medium price for 3 bedroom houses in West Footscray is $712,000.
Infrastructure Snapshot
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A $4.6 million investment in cycle ways and footpaths across our City will make wandering the local neighbourhoods by foot or pedal even more enjoyable
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$8 million to improve Council-owned roads across the City, making them safer and easier to drive on
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$970,000 for the renewal of nine reserves and open spaces, with two popular parks made even more appealing on sunny days, with Skinner Reserve receiving shade tree planning and a shade sail for McNish Reserve
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Renewal works at the Kingsville Kinder and Brenbeal, Angliss, Kingsville and Saltwater Children’s Centres, to give our young residents the best care they can get in the crucial first years of life.
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$100k for crossing renewals will also make it safer for children and families to get to and from care centres and schools
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$250,000 for cleaning and an exciting Laneway Activation Project in Footscray, as we continue support and promote the vibrancy and tourism appeal of this cultural hub
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Support for community-driven events such as the Seddon and Yarraville Festivals, along with supporting the New Little Music Festival and Australia Day favourite, the Stony Creek Music Festival
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Upgrades to many local sporting clubs to pavilions and club rooms, and new public exercise equipment for North Braybrook – as we remain dedicated to an active and healthy community
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$500,000 will provide further planting of trees in streets, boulevards, and parks, as we continue to green our City.
The Details
About the property
This beautifully presented weatherboard home sits on 303sqm of land in West Footscray. Owned previously by a retired fire fighter, the house is in immaculate condition. The current owners purchased the property in 2014 for $490k and have simply added a new kitchen and the rear deck entertaining area. The fireman completely renovated the home; re-wired, re-plumbed and installed the attic storage unit (10sqm). It ticks all the boxes for an investment property. The front garden is well kept with new plants and a small grassed area. There is 1 off street parking space accessed by remote and is at the side of the property in front of the shed. The rear entertaining area is functional with a new deck and synthetic grass allowing for all year round entertaining and convenience. Both bedrooms are generous in size and include built-in wardrobes. Appealing open plan living, dining and kitchen area. Current study area could be converted to a smaller 2nd living area leading out to the deck. The rear of the property is north facing so gets ample sunlight throughout the day. The streets are nice, quiet and well kept. Short walk to the train station which is then only 6 stops into town.
Agent Advertising Details:
A fresh, fully renovated feel makes its presence immediately felt throughout this captivating corner home, further enhanced by a pocket offering quiet, convenient proximity to Hansen Reserve's recreation facilities, Central West shopping and only a few minutes' walk to Tottenham station.
• Period elements and contemporary excellence
• Large living/dining with an attractive outlook
• Impressive, state-of-the-art open plan kitchen
• Stone benches, central island, excellent storage
• 2 alluring bedrooms, both include built-in robes
• Versatile study opens seamlessly to alfresco deck
• Updated, sky-lit bathroom adds to the appeal
• Enclosed attic allows for extra storage
• Effective heating and cooling ensures comfort
• Auto gates from Aliwal Street to secure car space
Your Brief Specifics
• 1.5km from the train station - This property is 400m from Tottenham Train Station (5 minute walk)
• Land size 400sqm block / 120sqm house - The land size (303sqm) is smaller than your request and the internal living area is approximately 103sqm (Inc. 10sqm attic space). In West Footscray, properties with land size above 400sqm are generally seeking above $700k.
• 10% capital growth / 5% rental yield - We note that the last three years West Footscray has recorded 25.48% capital growth (average 8.49% per year). The capital growth is 6.15% for the last 12 months. 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 West Footscray 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. This property is in great condition and presents an opportunity to attract higher rent and quality tenants.
Our thoughts
We really like this property and it ticks all the boxes. It presents a great opportunity to enter the Melbourne market in a growth suburb. As an investment property it presents no areas for concern and will be a property easily leased to quality tenants. Access to the CBD and public transport is extremly easy with direct roads to the CBD metres away.
The purchase and investment numbers are identical to 'The Little Charmer' - however, we believe this property is far superior. We would highly recommend pursuing this property. The agent advised that they would look at offers prior to auction and it is our recommendation to do so pending building and pest inspections.
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Investment data
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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.