91 Main Street Gembrook - Valuation
On the market for $560k +
Last sold in 2007 for $360k
On the market for 6 / 18 months ?
Price has come down significantly
Replacement value $650k+ est
My valuation $500k to 540k – My private valuation (I am not a professional)
Fully tourism dependent !
APM valuation not accurate
History for Gembrook shows little capital gains
Council rate notices (x2)
Business performance - Cottages perform well
Rent for café low (small town, business for sale and viability under pressure)
I have the data, but can't publish them
Buildings: 2 cottages and one café.
Backyard eligible for 1 (2) more cottage
Café for sale for $40k (facebook - public)
Cottage business included in Land price
New Cottages est cost $120k (1) to $200k (2)
Gembrook is a small town in the Dandenongs with under 3000 people living there.
Vacant commercial land is $350k+ per 1000 m2
Vacant residential land on Main Street is $200k+ per 1000 m2
The Pizza / fish and chips place has sold very cheap recently.
Hospitality competition (Independent, Spencer) very strong
Other Commercial Space becoming available Medical, Offices, Hairdresser in the pipe
Laneway behind the property may actually become public ultimately and that would translate to vehicle access as established with other properties. At 4 meter wide it may allow for car parking at the rear space permitting. It is currently fenced off because of construction work at the rear.
If the medical goes ahead then clients will find the noise annoying.
We will need to know the owner operator hours to value the businesses property
Business search results - Belgrave+10 | Gem+25 | Beacie+10
Some more thoughts for discussion:
With dual occupancy in 91Main-Gembrook in question it may be a good exercise to take a closer look at comparable biz opportunities.
If we look at 91 as a sole biz investment with $600k tied up then the targeted ROI should be 8% = $48k and if you become an owner operator and wish to replace your income then the target should double.
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