Frankston on the up

[Player]

I see your logic. Cheap is cheap and you spotted a beauty. I just got off the phone with the agent. He says he won't write down an offer of $380,000. "Mate the market is picking up fast, you have to offer something with a four in front of it if you want to be considered".

Porky pies, lies and more porky pies........looks like the agents have all their pigs fed and ready to fly. That's why it's had two and a half thousand hits.. It is a nice bit of dirt, however it is not in a great street. The hub/train is a lengthy walk from there. The block appears narrow at the front and fans out, so I doubt three townies will be suited there, but rather two or keep the original house which looks well set back to the rear, and backs onto the freeway and possibly build in the front. I don't follow the market that closely these days, but envisage better value to be had.

Barely a year ago, Frankston agents were a lot more humble and willing to sign-up all offers. There has been a sea change in attitude.

The higher the rest of Melb moves, the more the "bounce back" in cheaper suburbs like Frankston.

This house is not worth that price. I own closer to the hub from there in the central area on a corner with only slightly less land. The area will gentrify slowly, however that is still too much to pay today. The yield will also be rubbish. There will be a ceiling to what the market will bear there by way of rental returns for quite some time to come. It is a good area that central precinct however only for the right price.

 

[grand dad]

This house is not worth that price. I own closer to the hub from there in the central area on a corner with only slightly less land. The area will gentrify slowly, however that is still too much to pay today. The yield will also be rubbish. There will be a ceiling to what the market will bear there by way of rental returns for quite some time to come. It is a good area that central precinct however only for the right price.

Like you, I foresee the shape of the block to be a problem. A developer would definitely have to remove the house, which is still perfectly functional.

Getting a respectable house with a large backyard anywhere for $380,000 seems hard these days. My issue is that the agent lied - why has he listed it for $380,000 but refuses to take written offers at this price? This point turns me off.

About yield. The cheapest Frankston houses these days yield close to 5%.
Using that yardstick, the lower end of Frankston may well be good value.

For me, I prefer the bottom end of the Frankston market. The money lies in buying cheap stuff IMHO.

 

[Domma35]

With regard to hold and sell, would people prefer to hold and sell in Frankston South or Mt Eliza or Mornington?