Frankston prices increased???

Many yrs ago, we opened a business there when I was a kid. Remember I used to drive up with my folks every now and then to see how the minor shareholders and managers were doing. The business was a complete failure. Just a dead place everytime we went - nobody. So just speaking from commercial experience really.

What was the business?
 
Relax, dude.

Dude ? I suppose I'll get used to the local language.

As for not embracing self denial about the feral element ? I haven't seen any around the streets of Cliff Road - yet.

That said, we went down to the Frankston festival last weekend. Four out of five people had two heads.

We didn't stay long.
 
I doubt people would not be able to afford living in Frankston. It doesn't exactly set a very high bar in terms of house prices or in its attraction to live there

no offence to anyone, but if you can't afford to live in frankston, there is not much else in Melbourne Metro that you could live in.
 
It doesn't really matter how much Franga's is slagged. The truth is some day it will prosper because that's just the nature of Melbourne and it's trends over the years. Look at Glenroy, Broadmeadows and Sunshine for example. A few years ago, one would frown upon you if you lived there. Just like if you lived in Brunswick, Northcote or Coburg. Look at these suburbs now! Steaming ahead.

As time goes by, mentalities change and suburbs prosper. Especially if they provide beach, transport, shops, etc. It won't happen overnight, but it will happen...guaranteed.

I was a knocker of Franga's, but spent a bit of time there researching and now I'm a convert. And will buy there again for sure. Yield is good, growth prospects excellent, you can't go wrong no matter how you look at it. The suburb ain't going backwards no matter what.
 
It doesn't really matter how much Franga's is slagged. The truth is some day it will prosper because that's just the nature of Melbourne and it's trends over the years. Look at Glenroy, Broadmeadows and Sunshine for example. A few years ago, one would frown upon you if you lived there. Just like if you lived in Brunswick, Northcote or Coburg. Look at these suburbs now! Steaming ahead.

Um I don't think Broadmeadows or Sunshine are shining examples of gentrification....I'm sure people would still frown upon you if you live there (particularly Sunshine). Having said that, I would rather live in a suburb with plenty of single mums (Frankston) than with plenty of drug addicts/knife wielding gangsters (Sunshine, Footscray).

People have been saying the same 'gentrification' crap for generations - All you have to look at is Footscray, Collingwood etc. Those suburbs are very close to the city yet they are just terrible places to be, even before the Housing Commission flats were built! And that was 40-odd years ago! So contrary to your assertion, gentrification is not guaranteed.
 
It doesn't really matter how much Franga's is slagged. The truth is some day it will prosper because that's just the nature of Melbourne and it's trends over the years. Look at Glenroy, Broadmeadows and Sunshine for example. A few years ago, one would frown upon you if you lived there. Just like if you lived in Brunswick, Northcote or Coburg. Look at these suburbs now! Steaming ahead.

Yea I know... Broadmeadows and Sunshine are so prestigious these days. People there have such an air of arrogance about them and walk around with an upright chest and swinging shoulders. If you tell them you live in Carlton, they honestly give you a funny stare and have this smirk on their face. And they don't even have a beach in Sunshine!

Aazar, it's truly beyond godlike at Broadmeadows + Sunshine
 
Deltaberry\Aazar, noticed you didn't comment about Northcote and Brunswick? Those that lived there 20 years ago were considered poor and those out in Templestowe\Doncaster rich. How the tables have turned hey? And I won't even go down the Port Melbourne\South Melbourne path...

Time and patience grasshoppers.
 
I hardly consider Brunswick or Northcote rich areas. Neither are Templestowe/Doncaster rich areas. The rich areas are still Toorak, Albert Park, East Melbourne etc. Yes Port Melbourne has done well over the past few years, but one suburb's outperformance does not justify assuming that other suburbs that are not yet fashionable will become so in 20 years' time. I'm not saying that they won't do well - but how can you assume that they will just because they are crap now?

That's just like saying because you've made good money on one underperforming stock that you will now buy all the loser stocks because they'll all turn around as well one day. Sorry, but that's not how the world works. Sometimes a loser will always be a loser.
 
I've found most people who bag that suburb can't afford to live there, by chance that wouldn't be you would it?

I guess you're right for the time being; to buy a median house is close to $1.5m. I would need to sell a couple of IPs to cash in some equity (Affording it on paper is not the same thing). If I did decide to spend $1.5 on a PPOR I would prefer to buy on Olivers Hill rather than Brighton. I know a few friends / relatives who are very happy there; they are the people who have been in Brighton for most of their lives. A couple of friends have moved into the suburb and really didn't like it. One moved (to Elwood) and one is still there (only been there for a year). I have more in common with them so this is what I'm basing my opinion on. My dislikes would be similar to theirs. It's not envy, which is what I think you're inferring.

(To the people interested in frankston, sorry to be talking about another suburb again in the Frankston thread)
 
That's just like saying because you've made good money on one underperforming stock that you will now buy all the loser stocks because they'll all turn around as well one day. Sorry, but that's not how the world works.

You're comparing apples to oranges. How can you compare underperforming stock to limited land supply? I can't see the similarity.
 
Deltaberry\Aazar, noticed you didn't comment about Northcote and Brunswick? Those that lived there 20 years ago were considered poor and those out in Templestowe\Doncaster rich. How the tables have turned hey? And I won't even go down the Port Melbourne\South Melbourne path...

Time and patience grasshoppers.

Just responding to Aazar's post singling out Sunshine and Broadmeadows.

Never realised people living in Doncaster / Templestowe were rich.
Know a lot of waiters, sales and cleaners who bought there (I'm involved the retail business). Depends what you consider rich.

Anyway I have no doubt Frankston will reach the level of Sunshine one day. God speed.
 
Anyway I have no doubt Frankston will reach the level of Sunshine one day. God speed.

Sheez, you can cut the negativity with a knife it's so thick around here.

Anyway, yes Frankston prices on the rise most definitely.

A house I just missed out on in September got sold for $330k. Two bedroom house on a block of around 620 sqm. In hindsight, good thing I missed because I ended up buying a 3 bedder which is giving me a better yield on a corner block which I will later develop.

The house I missed out on is on the market again for $380k 4 months later. $50k increase in 4 months. Chicken feed for Deltaberry & Azzar probably, but a good return for the smart investor. Facts are facts....Frankston is on the rise.
 
The house I missed out on is on the market again for $380k 4 months later. $50k increase in 4 months. Chicken feed for Deltaberry & Azzar probably, but a good return for the smart investor. Facts are facts....Frankston is on the rise.

Hi TB

I fail to see how this is a good return for a smart investor,

Buy $330,000
Buying costs(5%) $16,500
Selling costs(4%) $15,200
Holding/opportunity costs(7 [email protected]%) $11,600
___________
Total $373,300
Gross Profit $ 6,700
___________
Nett Profit $ 4690
(less tax30%)

This assumes the owner manages to sell within a 30 days on a 60 day settlement.

The other assumption is that he recieves his asking price.

A lot of risk for very little return or quite possibly a loss.

Cheers

Pete
 
Hi TB

I fail to see how this is a good return for a smart investor,

Buy $330,000
Buying costs(5%) $16,500
Selling costs(4%) $15,200
Holding/opportunity costs(7 [email protected]%) $11,600
___________
Total $373,300
Gross Profit $ 6,700
___________
Nett Profit $ 4690
(less tax30%)

This assumes the owner manages to sell within a 30 days on a 60 day settlement.

The other assumption is that he recieves his asking price.

A lot of risk for very little return or quite possibly a loss.

Cheers

Pete

Fair enough Pete, but let's say prices hadn't increased or had increased very little. The person selling this property would have made a significant loss on his investment. When it comes to property, after having to bare buying and selling costs, they have done extremely well not to lose money in that 4 month period. And as we know, most of us are in the property game for a while.

BTW - You failed to include rent in your calcs which would add another $4k to the equation. I wouldn't mind close to $10K in 4 months for doing nothing. Leverage that across 5 properties and $50k isn't such a bad number.

Anyhow, we can debate it all day long. Truth of the matter is property right across Melbourne has gone up significantly in the last 6 months, including Frankston. For many, it has a cheap entry point and that's the drawcard. Love it, hate it, it ain't going backwards.
 
Fair enough Pete, but let's say prices hadn't increased or had increased very little. The person selling this property would have made a significant loss on his investment. When it comes to property, after having to bare buying and selling costs, they have done extremely well not to lose money in that 4 month period. And as we know, most of us are in the property game for a while.

BTW - You failed to include rent in your calcs which would add another $4k to the equation. I wouldn't mind close to $10K in 4 months for doing nothing. Leverage that across 5 properties and $50k isn't such a bad number.

Anyhow, we can debate it all day long. Truth of the matter is property right across Melbourne has gone up significantly in the last 6 months, including Frankston. For many, it has a cheap entry point and that's the drawcard. Love it, hate it, it ain't going backwards.


Hi TB

Frankston, don't love or hate it, investments are a set of figures.

Perhaps you could post the the sale price when it finally sells and
we can see if this deal lives up to your claim of a good return for the smart investor.

Cheers

Pete
 
I bought in Frankston Heights in Jan 09
4 bed 2 bath for 272k
Spent $11,700 in aug/sept on it.
It was valued at $375k last week.

Frankston is going up for sure!

But I still see 3 and 4 bed houses go for around 300k with not much work to do.

In laws bought a 3 bed 2 bath in Frankston South week before xmas for $312k
It needs 20k max spent on it and it will val at about $420plus by mid this year or earlier I would say.
 
I bought in Frankston Heights in Jan 09
4 bed 2 bath for 272k
Spent $11,700 in aug/sept on it.
It was valued at $375k last week.

Frankston is going up for sure!

But I still see 3 and 4 bed houses go for around 300k with not much work to do.

In laws bought a 3 bed 2 bath in Frankston South week before xmas for $312k
It needs 20k max spent on it and it will val at about $420plus by mid this year or earlier I would say.

In Jan 09, there were no 4 bedroom homes in Frankston Heights worth $272k. The minimum market value for such a property would have been $300k. You certainly bought this for a great price. Well done.
 
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