diff --git a/source/dub/init.d b/source/dub/init.d
index 23873bc..7836ab3 100644
--- a/source/dub/init.d
+++ b/source/dub/init.d
@@ -45,7 +45,9 @@
 	import dub.recipe.io : writePackageRecipe;
 
 	void enforceDoesNotExist(string filename) {
-		enforce(!existsFile(root_path ~ filename), "The target directory already contains a '"~filename~"' file. Aborting.");
+		enforce(!existsFile(root_path ~ filename),
+			"The target directory already contains a '%s' %s. Aborting."
+				.format(filename, filename.isDir ? "directory" : "file"));
 	}
 
 	string username = getUserName();
diff --git a/test/issue1070-init-mistakes-dirs-as-files.sh b/test/issue1070-init-mistakes-dirs-as-files.sh
new file mode 100755
index 0000000..4cd8e85
--- /dev/null
+++ b/test/issue1070-init-mistakes-dirs-as-files.sh
@@ -0,0 +1,5 @@
+#!/bin/bash
+
+cd ${CURR_DIR}/issue1070-init-mistakes-dirs-as-files
+
+${DUB} init 2>&1 | grep -c "The target directory already contains a 'source/' directory. Aborting." > /dev/null
\ No newline at end of file
diff --git a/test/issue1070-init-mistakes-dirs-as-files/.no_build b/test/issue1070-init-mistakes-dirs-as-files/.no_build
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1070-init-mistakes-dirs-as-files/.no_build
diff --git a/test/issue1070-init-mistakes-dirs-as-files/.no_run b/test/issue1070-init-mistakes-dirs-as-files/.no_run
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1070-init-mistakes-dirs-as-files/.no_run
diff --git a/test/issue1070-init-mistakes-dirs-as-files/.no_test b/test/issue1070-init-mistakes-dirs-as-files/.no_test
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1070-init-mistakes-dirs-as-files/.no_test
diff --git a/test/issue1070-init-mistakes-dirs-as-files/source/.empty b/test/issue1070-init-mistakes-dirs-as-files/source/.empty
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1070-init-mistakes-dirs-as-files/source/.empty