re: 990k sale
The property was in Gould Street and it sold at Auction earlier this month.
The property was in Gould Street and it sold at Auction earlier this month.
Frankston prices increased???
- Thread starter DanielG
- Start date
highest price ever for the area........ you make me laugh. Some properties in South Frankston are worth in excess of several million dollars. There are properties beachside of Nepean overlooking the new Marina that are worth alot. Not to mention some of those on Olivers Hill.
Get off the internet and go for a drive around the Olivers Hill area. Nothing is like this in Melbourne. A VERY underrated area.
On Sky Business News today, property guru Margaret Lomas casually mentioned Frankston again. Anyone know how many she owns locally? I was told by a local person in the know that she has 6 houses there. Is she still buying?
It was built in 1994. It is a big 3 bedroom 2 bathroom unit in a block of 8. I paid $212,000. My neighbour just sold hers 3 months ago for $245,000.
do what the property gurus do, not what they say
Spoke again to a Frankston real estate agent who claims that property investment gurus Margaret Lomas and Terry Ryder bought Frankston, Seaford and North Frankston homes through his firm. I asked about specific locations but he refused to divulge this info, claiming that I could look it up myself through the council or through realtor.com (I do not have access to the latter). I'm not sure how the council is allowed to release such info so I guess he's brushing me off.
He says these property gurus bought into the local market over the last gloomy year and he claims their average entry price was, in his words, "slightly over $300k and less than the current median." I imagine they paid a lot less in North Frankston
I'm very curious to see EXACTLY what these gurus have bought and EXACTLY where these houses are located and EXACTLY what they paid for these houses. If you have this information, please post it here. It will give the rest of us a good idea of what is worth buying and how not to pay too much.
That two property gurus have bought locally is a huge sign of their confidence in the area. My investment strategy: do as the property gurus do, not what they say. I want to follow the smart money to secure good deals with great appreciation potential. My plan is to pay no more than what they paid for their acquisitions.
Spoke again to a Frankston real estate agent who claims that property investment gurus Margaret Lomas and Terry Ryder bought Frankston, Seaford and North Frankston homes through his firm. I asked about specific locations but he refused to divulge this info, claiming that I could look it up myself through the council or through realtor.com (I do not have access to the latter). I'm not sure how the council is allowed to release such info so I guess he's brushing me off.
He says these property gurus bought into the local market over the last gloomy year and he claims their average entry price was, in his words, "slightly over $300k and less than the current median." I imagine they paid a lot less in North Frankston
I'm very curious to see EXACTLY what these gurus have bought and EXACTLY where these houses are located and EXACTLY what they paid for these houses. If you have this information, please post it here. It will give the rest of us a good idea of what is worth buying and how not to pay too much.
That two property gurus have bought locally is a huge sign of their confidence in the area. My investment strategy: do as the property gurus do, not what they say. I want to follow the smart money to secure good deals with great appreciation potential. My plan is to pay no more than what they paid for their acquisitions.
It was 114 Gould Street and it sold for $906,000. It was a pull down beach house on land not much more than 500 sq metres. It was quoted at $600-$660 and was on the market in the $700's.
From a pure dollars per square foot value it was an amazing price - approx. $150 per sq ft.
Last time I looked Frankston and Frankston South were two different suburbs - despite the shared post code.
Out of interest, do you live on Oliver's Hill ?
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No I dont. I live in Aspendale, but my parents moved from Mentone to Frankston about 20 years ago. My sister lives at the back of Olivers Hill and has a reasonable view of the Bay from the back decking.
I attended a body corp meeting at a house in Menzies Close. The backyard overlooked the Bay and the view blew me away. It reminded me of the Bay Area in San Francisco where all the houses are on hills overlooking the Bay. My house in Aspendale is probably only a few metres above sea level.
Olivers Hill is the only area between Frankston and the city that has these elevated views of the Bay. That to me is the underrated feature of Frankston.
Just listed if anyone is interested in purchasing in F Nth.
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=106099540&rsf=emailalert-propdetails
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=106099540&rsf=emailalert-propdetails
No lol. Not one of the agents. I'm done and dusted. There are a few people posting to these threads saying where are the bargains. I just saw this and thought it might be worth a look for anyone interested in the area. I won't bother again since, as you point out, anyone interested would be looking at RE com au anyway.
Just received my copy of API which for anyone who has not yet received is the annual hot 100 edition.
And again, Frankston is listed, for what its worth.
Mind you, I own one property in Frankston and it hasn't done much since last 'hottest' 100..
I generally take the "pro's" with a grain of salt but I can see that prices will move up swiftly sooner or later. Lucky its a long termer!
So there you go, some magazine and random guy telling you what you already know.
And again, Frankston is listed, for what its worth.
Mind you, I own one property in Frankston and it hasn't done much since last 'hottest' 100..
I generally take the "pro's" with a grain of salt but I can see that prices will move up swiftly sooner or later. Lucky its a long termer!
So there you go, some magazine and random guy telling you what you already know.
Ok - thanks.
We purchased not long ago just off Cliff Rd in Oliver's Hill and move in mid Dec. I look forward to getting to know the amenities.
Coincidentally, my wife's Sister lives in Aspendale and is rapt that we'll only be just up the road.
I was wondering if people could share their experiences,
ive noticed that many properties that are being advertised (not sold as of yet)
asking price being about $350k, but current rental being $230-$250 per week,
this represents a very poor yield, I would be expecting at a minimum of 4.6% - 5%,
I undertand that with another interest rate rise before christmas, the market may change, but what are your thoughts on this poor yield,
as in just accept it as the market condition or keep looking at a 5% yield
ive noticed that many properties that are being advertised (not sold as of yet)
asking price being about $350k, but current rental being $230-$250 per week,
this represents a very poor yield, I would be expecting at a minimum of 4.6% - 5%,
I undertand that with another interest rate rise before christmas, the market may change, but what are your thoughts on this poor yield,
as in just accept it as the market condition or keep looking at a 5% yield
Rents lag behind property values during growth spurts driving the yields down.
All that has happened is a significant increase in the property values in Frankston and surrounds over the last 6 months so those properties that were yielding 5% earlier this year on $250k price points and with $250/ week in rent are now yielding 4% or less on $300k price points however still with $250/week rent.
Rents appreciate in an inflationary environment and as holding costs increase with the increasing interest rates there will be more pressure on rental values resulting in higher rents.
Harris
All that has happened is a significant increase in the property values in Frankston and surrounds over the last 6 months so those properties that were yielding 5% earlier this year on $250k price points and with $250/ week in rent are now yielding 4% or less on $300k price points however still with $250/week rent.
Rents appreciate in an inflationary environment and as holding costs increase with the increasing interest rates there will be more pressure on rental values resulting in higher rents.
Harris
I don't think there would be too many $350K properties only capable of getting $250 a week! I personally am getting 4.9% on my property I purchased in May this year for $290K. My friend purchased a property also in Frankston about 9 months before me for $265K, and she's getting about 5.3%.
I'm not sure which properties you are referring too, but I'd say their rent is well and truly under the market rent for Frankston. Have you done a search on realestate.com.au for rents in Frankston. Not much for $250 a week, especially not in properties of $350K quality! I'd expect rent of at least $310-$330 for that cost.
I'm not sure which properties you are referring too, but I'd say their rent is well and truly under the market rent for Frankston. Have you done a search on realestate.com.au for rents in Frankston. Not much for $250 a week, especially not in properties of $350K quality! I'd expect rent of at least $310-$330 for that cost.
Timely article in Herald Sun
http://www.heraldsun.com.au/news/victoria/rental-prices-tipped-to-soar/story-e6frf7kx-1225795182516
Likely to extend to Frankston and North I'd assume.
quote
Despite the shortage of rental properties, Melbourne is the lowest yielding capital city in Australia.
Metropolitan houses are returning 3.9 per cent while units are producing the slightly higher yield of 4.5 per cent.
http://www.heraldsun.com.au/news/victoria/rental-prices-tipped-to-soar/story-e6frf7kx-1225795182516
Likely to extend to Frankston and North I'd assume.
quote
Despite the shortage of rental properties, Melbourne is the lowest yielding capital city in Australia.
Metropolitan houses are returning 3.9 per cent while units are producing the slightly higher yield of 4.5 per cent.
And Frankston appears not to be exempt from tiny yields.
Unless it's bait advertising, $115pw for this 2br unit in Fairway St, Central Franga (admittedly not the best street) seems insanely low:
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=43839075&s=vic&tm=1257545049
I suppose it would be worth somewhere near $200k giving a yield of just 3%!
Similarly $170pw for a 2br unit is another bargain: http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=43839075&s=vic&tm=1257545049
okie everyone, I see your point, this is the property I just chose at random sort of
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=86090805&s=vic&tm=1257551627
asking price $350, current rental $240 per week (we all know that asking price and selling price can be very different, but from what I ve seen, you basicallly have to offer the asking price to get anything in this area)
http://www.realestate.com.au/cgi-bi...LIA&c=66470664&p=10&s=vic&t=res&tm=1257404441
$230 per week, asking price as high as $330k
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=86090805&s=vic&tm=1257551627
asking price $350, current rental $240 per week (we all know that asking price and selling price can be very different, but from what I ve seen, you basicallly have to offer the asking price to get anything in this area)
http://www.realestate.com.au/cgi-bi...LIA&c=66470664&p=10&s=vic&t=res&tm=1257404441
$230 per week, asking price as high as $330k
That Clarendon Street one looks like a redevelopment site. You can't expect high rent on a dump just because the block is big and can be redeveloped. Talk about want your cake and eat it too.
The rent on that other one does look a bit low however, but keep in mind the comments others suggested about rents lagging behind etc. Depends what you're after, if you want a redevelopment site then you probably need to expect a lower return and it's only temporary anyhow until you build. But I think if you are looking for a buy and hold nice property, that the rental return would generally be higher. I don't think it's hard to find a return of 4.5% or more in Frankston. Just depends what sort of property you're looking for.
