Frankston South - Please recommend "preferred areas"

Howdy all,

I am finally "sold" on Frankston South idea. (partially due to prices in mentone/parkdale/moridalloc) are simply too high.

I don't really know much about the area but would appreciate any pointers in terms of which streets/pockets are worth buying in.

Any info would be much appreciated.


Cheers
Vlad
 
Hi Vlad,

Best area is Olivers Hill, beach side of Kars Street. There are also sought after pockets up to Overport Road & surrounds. Unless you are in the Derinya primary school area where the subdivisions are 2/3 acre, try & buy as north as possible (towards the town centre).
You don't want to buy east of the highway. This area was re-zoned Frankston Sth from Baxter a few years ago.
 
Thanks JulieW.
This block of land is a good find. However I am not planning on building right away. I am hoping to rent the place out for at least 3-5 years, so I need to have a renovatable house on the block.


What did you think of the once I've picked earlier?
 
Hi Vladt,

I am a local in Frankston South. The Woodlands Gve property would be my pic between the two..great part of town, close to the beach and amenities in the city.. for my two bobs worth.:)
 
I'd agree with Brando22 on choice between the two - but the description sounds like a major reno if not a pulldown and rebuild - and if the RE agent is saying needs work then it probably needs a bulldozer.

The pool would put me off with the other one - unless you want to convert it to a solid underwater rainwater tank for the future.
 
Thanks Brando22 and JulieW.
Just spoken to the agent that's handing the property.
The house needs to be pulled down so no go here!

He did give me some additional info to complement my research. He indicated that the following streets are in high demand, all being south side of Kara road.


Cliff Road,
Gweno Ave,
Warringah Road,
Violet rd,
Fenton crescent

He did mention that numerous properties have single dwelling covenant!

Cheers
Vlad
 
Interesting about the covenant vladt.

this from the website seems a trifle optimistic then:
‘Viewpoint’ is a small, two bedroom post-war cottage in disrepair. The roof appears to be in reasonable condition, but much of the interior would require urgent attention. Many years of neglect have taken their toll on this once cute cottage. Several possibilities are available - you could roll up your sleeves and salvage some of all of the existing dwelling, or you could remove it and build your dream home (STCA.)

If you could get the land value alone for 320 or so it might be feasible but i'd say just keep looking. The one thing that Somersoft has taught me over and over is that the perfect property for you pops up frequently enough that you don't have to rush.
 
You are absolutely right JulieW.
It's not even the absolute minimal price but the time it takes to make something like that feasible.

I've only just started looking at Frankston South.
It's an exciting time of studying the different areas (Thanks to all members here for helping out) and narrowing it down. The agent mentioned that they have done appraisals of large number of properties just before Xmas, so there should be plenty of stock in a new year.

JulieW - have you invested in the area before?
How about anyone else in this thread?
What type of properties do you guys go for?
I am looking for a reasonable (read; rentable house) on a 600sqr meters plus block of land.

Out of curiousity, one of the agents just called up and offered this:

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2008125130

900k will take it off the market :eek:


Thanks
vladt
 
The one thing that Somersoft has taught me over and over is that the perfect property for you pops up frequently enough that you don't have to rush.

I bought my PPOR 2 years ago. My friend also started looking at that time. The family members have so many different opinions that they still haven't settled on anything. Meanwhile, median house price has gone up 200-300 K in the area they are interested and now still insist in buying. Now they are doubtful they are going ever to buy and afford a property.
 
I think the general advice here, and mine too, would be to work out what you're after and go from there.

To start with an abstract idea ( a renter on 600m) and then look for a suburb is perhaps a bit restricting. I'd be looking at budget, and what can be purchased in the chosen area and compare to others. Properties you've quoted seem to indicate you're amenable to spending 6-700k. That could be two renters elsewhere (search for the Melton thread), or a two bedroom flat in Armadale, or even a one bed/bedsit in East Melbourne.

If you're after turning your 600k renter into a PPOR later in an area you like, consider that the area might change, as may your future needs and plans. I'm just new at this as well but what is very obvious to me that the 'ideal' property is lilke the question 'how long is a piece of string?'.

My original IP plan is not like my revised plan now that I've been and done the first one. (actually a first IP reminds me of being thrown off a boat to learn to swim to shore - you can read the books and get the advice, but it's only when you're wet that adrenaline, survival instinct and desperation will get you back to shore lol - Search here on mental attitude to debt!).
 
JulieW - Over the past 3 -4 month I have been reading numerous books/magazines/forums trying to educate myself financially. I am starting with basically very little in terms of assets and some equity in my house. I am also on a good terms with my bank manager, so the loan has already been pre-approved.

My plan is to purchase rental properties, that can over time, become cash flow positive and support my family in retirement. The intended properties are purely for rentals. I have no intention of turning one of them into PPOR.

Since I live in a Bayside area, I've started my research in adjacent areas. Areas with good rental potential such as Carnegie/Caulfield/Murrumbeena are way too expensive with very little in terms of yield (2-3% max). Ideally I would like to purchase an IP with reasonable yield (at least 4-5%)and good future upside.

My limited research has lead me towards Frankston South. IMHO it has very good upside with Frankston by-pass and Frankston Marina. The house with a good land component can be purchased for a similar price to a 2 bedroom unit in Carnegie. While the rentals for both properties are comparable, the potential capital gain in Frankston South is much higher.

Over the next 12-18 month my intention is to purchase a house in Frankston South and may be a unit in Mentone/highett/Cheltenham or Chelsea. Obviously subject to market condition and financial ability. I do feel anxious about such high level of debt. At the same time I understand that there is no upside without some level of risk.

Does my logic here makes sense?
 
....I do feel anxious about such high level of debt.
Yep, we all do initially. Then when you realise that YOU don't have to make repayment payments on $2+M of debt, that you actually have a bunch of tenants helping you, then you tend to relax a bit more ;)....and it becomes easier as time goes on.

At the same time I understand that there is no upside without some level of risk.
Yes agreed. Courage is when you feel the fear but step out and do it anyway. That is not to say you take stupid risks that have a 1 in 100 chance of coming off. :p But sensible calculated risk with a backup strategy if things don't go as planned would be wise.

Does my logic here makes sense?
Yes - go to it.
 
hi julie, the woodlands grove has been for sale now for over 13 months at least, he won't take nything less than $400k when i spoke last year?? may have changed but it will still be there in a years time at that price..... the karingal area is good for rentals, i have 2 there and have no problems renting bthem out. u can get something on 600 sqrs for 300K quite easy, nd get 280 p.w rent?? the bypass is going to the north of the suburb which wil help it grow in value imho.

if you need anyhelp on areas around frangers p.m me, have been checking it out for 2 years now and hv 3 props there, one in frankston south too.

good luck
 
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