Frankston North Houses At Record High In Slowing Market!

[Melbournian]

Chill annie - u're more older than me - sure tolerance is one of ur virtues.

sorry i caught a bug off another poster for the one or two liner quick posts.
my apologies.
all the best in ur investments in frankston

 

[annie lumen]

Chill annie - u're more older than me - sure tolerance is one of ur virtues.

sorry i caught a bug off another poster for the one or two liner quick posts.
my apologies.
all the best in ur investments in frankston

Thanks for your good wishes Melbournian. Please don't insult my beloved Frankston in future! *wink*

 

[Property Pig]

Piggy, the reason Frankston Nth is last at the moment is that bargains are popping up in superior locations..

Bargins are popping up but can't buy much for $300k these days in metro Melb

 

[newbyinvestor]

I may or may not redevelop. I will make a decision in a few years from now. For me, a property that can be developed is more easily sold to investors later down the track if I decide that development is not my cuppa tea.

The only uncertainty in my mind is this: ......should I pay circ $300,000 for a place in Frankston North or maybe splurge out and buy something in the Karingal district of Frankston for an extra $20,000?

Annie, $20,000 extra to buy in Karingal is the real bargain.

 

[Bayside]

Annie, $20,000 extra to buy in Karingal is the real bargain.

Now that would be a bargin. Its more like $50,000 extra and always has been.
I recon you can pick up a crappy fibro in Frankston Nth for $280k, brick places are about $300k. Will cost you $340k for a dump in Karingal and $360+ for anything decent.

 

[annie lumen]

Now that would be a bargin. Its more like $50,000 extra and always has been. I recon you can pick up a crappy fibro in Frankston Nth for $280k, brick places are about $300k. Will cost you $340k for a dump in Karingal and $360+ for anything decent.

Bayside, look around and be surprised! The Karingal district of Frankston, which is deemed to be better than North Frankston, is also very mispriced and, consequently, good for future capital gain.There are cheapies aplenty to be had, many of which are of solid brick construction, on redevelopable blocks. Some of these, if you negotiate hard, can be bought for around the $320,000 mark ie. around $30,000 below the current Frankston REIV median of around $350,000.

What do you do once you've bought your developable cheapie? Personally, I'd rent it out for a few years. Then demolish the existing house and replace it with two new ones! The local council is pretty helpful as they want to see the area modernized. Redevelopment also means more rates for the council as there are two homes where there was once just one old house. Its no wonder they encourage redevelopment.

Everyone's goals are different. The challenge for me is to find really exceptional situations where I can retain the existing house and perhaps build another townhouse in the rear someday, when I can find the time and energy. These situations (ie. where you can retain the existing house and still redevelop the rear of the land) are getting rare these days and one has to pay a premium for them. There are still a few available in North Frankston, fewer in Karingal and the rest of Frankston. They usually sell very quickly. It helps to curry favor with local agents if you want to grab these when they come up.

Don't take any of the above as advice. I'm just sharing what I am personally doing. For the record, I don't even live in Frankston! I'm investing simply because I'm chasing capital gain and the area IMHO is chronically undervalued; the current median for Frankston is $200,000+ less than the median for the greater Melbourne area and a catch-up situation is more than likely over the next few years.

Important: if you hurry unnecessarily and pay too much for your IP, there will be less capital gain to be had in the future. Never, never overpay. There have been a few $450,000+ situations where people have paid well over the median price for immaculate houses that are on smaller blocks which cannot be subdivided. Thats fine if you plan to live in Frankston. Not good if you are an investor chasing decent capital gain over a 5 year timeframe. Beware. Best to buy on blocks that are more than 600sqm in size.

Goodluck everyone. Including those who hate Frankston and think it's going nowhere.

 

[Property Meister]

annie your constant propping up of Frankston/Frankston north is getting simply annoying

many others have already done that a year or two ago,

frankston is the most talked about suburb on the forums, if you want to learn more about them, just look through the massive threads already here, I did a few years ago and learnt a hell of a lot from them.

Mind you, I am pro frankston as well, but its still just another suburb

 

[newbyinvestor]

Bayside, look around and be surprised! The Karingal district of Frankston, which is deemed to be better than North Frankston, is also very mispriced and, consequently, good for future capital gain.There are cheapies aplenty to be had, many of which are of solid brick construction, on redevelopable blocks. Some of these, if you negotiate hard, can be bought for around the $320,000 mark ie. around $30,000 below the current Frankston REIV median of around $350,000.

What do you do once you've bought your developable cheapie? Personally, I'd rent it out for a few years. Then demolish the existing house and replace it with two new ones! The local council is pretty helpful as they want to see the area modernized. Redevelopment also means more rates for the council as there are two homes where there was once just one old house. Its no wonder they encourage redevelopment.

Everyone's goals are different. The challenge for me is to find really exceptional situations where I can retain the existing house and perhaps build another townhouse in the rear someday, when I can find the time and energy. These situations (ie. where you can retain the existing house and still redevelop the rear of the land) are getting rare these days and one has to pay a premium for them. There are still a few available in North Frankston, fewer in Karingal and the rest of Frankston. They usually sell very quickly. It helps to curry favor with local agents if you want to grab these when they come up.

Don't take any of the above as advice. I'm just sharing what I am personally doing. For the record, I don't even live in Frankston! I'm investing simply because I'm chasing capital gain and the area IMHO is chronically undervalued; the current median for Frankston is $200,000+ less than the median for the greater Melbourne area and a catch-up situation is more than likely over the next few years.

Important: if you hurry unnecessarily and pay too much for your IP, there will be less capital gain to be had in the future. Never, never overpay. There have been a few $450,000+ situations where people have paid well over the median price for immaculate houses that are on smaller blocks which cannot be subdivided. Thats fine if you plan to live in Frankston. Not good if you are an investor chasing decent capital gain over a 5 year timeframe. Beware. Best to buy on blocks that are more than 600sqm in size.

Goodluck everyone. Including those who hate Frankston and think it's going nowhere.

Annie, over several months last year I worked out Location within the location of Frankston itself. A sort of pecking order if you like.
My advice is don't worry about buying the cheapest house anywhere in Frankston, buy the property that is the best value for money.

 

[Token Funder]

Annie, over several months last year I worked out Location within the location of Frankston itself. A sort of pecking order if you like.
My advice is don't worry about buying the cheapest house anywhere in Frankston, buy the property that is the best value for money.

Is it just me or does anyone else think that if ng disappeared tomorrow, Frankston would be a re sales ghost town?

All the pumping does make me wonder.....

 

[Monopoly]

Is it just me or does anyone else think that if ng disappeared tomorrow, Frankston would be a re sales ghost town?

All the pumping does make me wonder.....

One of many TF

 

[myoung]

Is it just me or does anyone else think that if ng disappeared tomorrow, Frankston would be a re sales ghost town?

All the pumping does make me wonder.....

I'd be more worried about lower yielding areas than Frankston if negative gearing disappeared.

 

[Property Meister]

I'd be more worried about lower yielding areas than Frankston if ng disappeared.

whats ng?


the only ng I know is national gallery which would never be in frankston

 

[annie lumen]

i'm always happy to learn from people who can regularly outperform the herd, be it in the financial markets or in the property game. Its only the most jealous of people, most of them very mediocre, who seek to cut down tall poppies. That's not me - I have nothing but respect for people who are successful. Provided, that is, they are honest and haven't harmed others.

To the poppy loppers on this thread, sleep well with the knowledge that I'm not holding a loaded gun to anyone's head and forcing them to buy into Australia's cheapest beachside suburb.

I sense just the slightest whiff of sour grapes from the "I loathe Frankston" brigade. Sadly for you, Frankston North, resplendent in all its working class squalor, has outperformed most of Melbourne during the last very difficult quarter. The indisputable fact is this: dumpy old Frankston North rose to an all time high when the rest of Melbourne took a caning. The "I loathe Frankston" brigade must find it especially galling that Frankston remains affordable and, based on my projections, set to become cash flow positive within three years (if you get in cheaply enough and take care not to over-pay for your IP).

Personally, I'm in it for the money. I never invest for prestige or status. I'm comfortable buying the cheapest rentable homes in mispriced suburbs. My plan is to be cash flow positive within 3 years of each acquisition. I'm satisfied with my progress thus far, even in this sickly market. Without revealing too many details, Frankston and North Frankston have been kind to me.

People often ridicule me for investing in a working class suburb. I keep an open mind. If you hate, loate, despise Frankston and have regularly outperformed the market elsewhere, I'd love to learn from you.

Token, you are known on SS for your austere and cautious remarks. We'd love to know how your own portfolio is doing so we can follow your lead. In the past, others have challenged you to 'fess up but you've always failed to respond. Please tell us what YOU are doing with your money? And if you are mostly in cash and fearful of a market slump, why then are you posting on a property forum? Like Don Quixote, are you trying to protect us from the windmills? If so, that is a laudable and selfless act on your part.

frankston is the most talked about suburb on the forums,

Incorrect. Frankston is reviled as an investment destination. I'm getting in because I'm a contrarian. People hate Frankston. That's fine by me, it helps me get cheaper deals. Keep on bashing the place for all I care.

 

[Monopoly]

Whoa whoa whoa steady on there girlfriend, don't read too much into TF's question. I think he was having a dig at those who were/are (smart enough to be) investing in Frankston. His question didn't bother me, in fact it did the opposite. Although I believe that if things go sour, they will do so across the board, I reckon there are many others that would go under way way before my sweet little mornington pen properties!!

I am all for Frankston, and have been since the day I joined. I've been singing it's praises but the fact that I haven't contributed to any of the "I love Franga" freds is simply because I couldn't be fagged getting into a sh*tfight and risk converting those who don't invest there to do so, hence more for me!!!

Annie, it doesn't matter what other people think!! It's what you think and if you're happy with where/how you've invested your money, that's all that matters!!

 

[Property Meister]

Incorrect. Frankston is reviled as an investment destination. I'm getting in because I'm a contrarian. People hate Frankston. That's fine by me, it helps me get cheaper deals. Keep on bashing the place for all I care.

so which suburb in do you think is the most talked about suburb then?

 

[Intrinsic_Value]

annie your constant propping up of Frankston/Frankston north is getting simply annoying

many others have already done that a year or two ago,

frankston is the most talked about suburb on the forums, if you want to learn more about them, just look through the massive threads already here, I did a few years ago and learnt a hell of a lot from them.

Mind you, I am pro frankston as well, but its still just another suburb

Hang on Property Meister, if you dont like the thread then DONT READ IT.

Why dont you post some alternative threads, to start some different conversations. Dont just complain that a thread that you are not interested in is becoming annoying.

 

[Monopoly]

I'd give you kudos for this IV but unfortunately I've used my quota for the day.

 

[annie lumen]

It wasn't the quantity or the quality. It was the combination of cheap red wine that led to yet another Frankston-loving tirade from me. I recall being very upset at the time of writing, barely 90 minutes ago. How dare anyone slander my beloved Frankston?! Underperforming heretics who haven't once outperformed the market do not have the right to criticize Frankston. The nerve of the cheeky brutes!

My bogan tenants, bless their hot little commodores, would be proud of me for standing up for Frankston. But that does not excuse my poor behavior. I could delete the post entirely but that would be dishonest.......

I am overcome with shame, now very contrite for what seems to have been a hubris-filled, gloating post. Please forgive me. Feel free to decry Frankston once again. I deserve the pain.

 

[Intrinsic_Value]

It wasn't the quantity or the quality. It was the combination of cheap red wine that led to yet another Frankston-loving tirade from me. I recall being very upset at the time of writing, barely 90 minutes ago. How dare anyone slander my beloved Frankston?! Underperforming heretics who haven't once outperformed the market do not have the right to criticize Frankston. The nerve of the cheeky brutes!

My bogan tenants, bless their hot little commodores, would be proud of me for standing up for Frankston. But that does not excuse my poor behavior. I could delete the post entirely but that would be dishonest.......

I am overcome with shame, now very contrite for what seems to have been a hubris-filled, gloating post. Please forgive me. Feel free to decry Frankston once again. I deserve the pain.

You obviously feel very passionate about your investing views in Frankston.

Now for the record, before anyone accuses me of being biased in this somehow, personally i dont give two hoots about Frankston at the moment.

But that doesnt mean
(a) someone else is looking at this area and could get some useful information from your posts, or
(b) at some stage in the future i something will trigger my interest in Frankston, and then i will start looking back through some older threads.

The best threads and posts in Somersoft tend to be those where there is detailed unrequited sharing of information. That information might not be of use to everyone, but that doesnt change the fact that it might be of value to someone.

And of course the obvious, do your own reserach applied. If you engage in a financial transaction based just on a viewpoint you saw on an internet forum, then you derserve to loose your money.

 

[Token Funder]

Token, you are known on SS for your austere and cautious remarks. We'd love to know how your own portfolio is doing so we can follow your lead. In the past, others have challenged you to 'fess up but you've always failed to respond. Please tell us what YOU are doing with your money? And if you are mostly in cash and fearful of a market slump, why then are you posting on a property forum? Like Don Quixote, are you trying to protect us from the windmills? If so, that is a laudable and selfless act on your part.

I prefer the term unsentimental to austere but to each their own.

I've never hidden my "portfolio"...I'm rarely asked.

I'm not anti-property. In fact, I suspect I am one of the few here who has never rented. I bought my first place when I left home at 19 (unit in what would be considered a very rough area) because paying someone else's mortgage had little appeal and have owned ever since.

As some might remember, I was an accidental investor in that I kind of never got around to selling previous PPOR's for various reasons so had a couple of investment properties until 06 when I noticed my equity plus my shares covered all my outstaning debt and then some. Liquidated everything to enjoy debt free living and became a net saver.

Not everyone's cup of tea but my definition of wealth is spending less than you earn without having a sense of depriving yourself of anything meaningful. Coming from a fairly modest background I haven't found it particularly difficult to allow my appetites to grow at a slower rate than my income.

It's a bit old school but there's a lot to be said IMHO for not having to worry about money and the solution isn't exclusively making more.

As a consequence, I'm not personally fearful of a market slump. My house could drop by 50% tomorrow and it won't mean much to me. I value it on the basis of the pleasure and utility it delivers, not what it's worth to someone else.

Professionally and as regards Australia in general , however, housing costs increasing at a greater crate than wages is a bad thing because housing is not just an ordinary asset. Once it becomes a speculative play it adds to the cost of living whilst diverting capital from more productive enterprises. For that reason I am in favour of policy settings that moderate housing price growth by reducing incentives for speculation and increasing the level of supply.

Finally, as someone who runs a large lending business , I see the impact of unrealistic approaches to pi, largely brought about by self- interested spruikers and others who have cottoned on to the fact the more money is to be made from property investors than by property investors. Combine this with the Australian predisposition for punting rather than creating, and I see enough train wrecks to have strong views. It's for that reason that I take a great deal of personal pleasure from raining on the occasional parade.