The Quiet Achiever
18 Wallace Street, Maidstone
The Numbers
3 - Bedroom
1 - Bathroom
1 - Car space
Auction
$620,000 + (Price guide)
Auction; August 20, 2016
Our Target Purchase Price
$690,000
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)
3.16%
Outgoings
Water - $300 / qtr (approx.)
Council - $625 /qtr (approx.)
Investment Cash Flow (per month)
Your rent received = $1,820
Your mortgage = $3,014*
Your outgoings = $308 (approx.)
BALANCE = -$1,502/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 maidstone).
Renovation Allowance
Not required at this stage
Other Fee's
Professional: Approx. $1,750
Stamp Duty: $35,780 (based on target price).
Milk Chocolate Fee's
• 0.9% on final sale price + gst ($6,210 + gst based on target price).
Total Outlay
Purchase Price = $690,000
Settlement Misc. Estimate = $1,500
Stamp Duty = $35,780
Professional Fee's = $1,750
Milk Chocolate = $6,210
Milk Chocolate Incidentals = $1,500
= $736,740
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)
Leasing Agent
Jas Stephens Real Estate - Yarraville
The Documents
Contract of Sale
Title Search
The Stats
Distance to CBD
9.8km from the Melbourne CBD.
Population
The population in 2006 was 6,050. Recent data from the 2011 Census suggest the population is now 7,750.
Medium Property Price
The medium price for 3 bedroom houses in Maidstone is $653,000.
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
As you know, we have not viewed this property yet, however, our research and data leads us to believe the position, the size and location of the property ticks all the boxes and a whole lot more. Discussions with the agent lead us to believe the property is in exceptional condition and would be ready to move in. Original floorboards and a weatherboard finish provides character beyonds it's years. Down the track, you could look at updates to the kitchen and bathroom, however, for the
point of leasing the property out to quality tenants, it's current condition is certainly more than fine.
Agent Advertising Details:
• Inviting living features reverse cycle cooling & ducted heating throughout
• Adjoining dining room offers appealing proportions
• Separate central kitchen retains original retro cabinetry
• 3 bedrooms include a main bedroom with garden aspect
• Central bathroom and separate north facing sun room
• Pergola entertaining, productive garden planter boxes
• Off street car parking is a convenient added attraction
• Entirely serviceable, easy scope to update when ready
• Enticing, rewarding opening in a family friendly location
Your Brief Specifics
• 1.5km from the train station - Although this property does not match this criteria, we note that the nearest bus stop is 850m from the property and a 45 minute trip to the CBD - door to door.
• Land size 400sqm block / 120sqm house - The land size of this property is 315sqm and the house is 135sqm. Although slightly smaller in overall block size, we believe this still presents a unique opportunity regardless of the block specs.
• 10% capital growth / 5% rental yield - We note that the last three years Maidstone has recorded 24.85% capital growth (average 8.28% per year). 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 Maidstone 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
This is a sit and forget scenario once we get your tenant into the property. It's in a great suburb that is close to schools, shops and transport connections into the CBD. The urban sprawl continues into Maidstone from hip neighbouring suburbs such as Footscray and Yarraville. Wallace Street is quiet and far enough away from Ballarat Road. We anticipate steady capital growth with the potential in years to come to add value through renovating and extending up. Until then, its a sound quality investment, in a great suburb of Melbourne.
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
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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.