Hi, I'd like to know which areas in Frankston, Victoria are the "better" areas? I am aware of Oliver's Hill, but apart from that which area holds the most value? Frankston, South or North Frankston? There's an opportunity to buy a 2 bedroom unit in North Frankston, but not familiar with the area. It's a 2 bedroom unit with single carport, about 4 years old. It's very close to the new Bi-lo shopping centre. Asking price is about $220K. Please advise if you can. I'll be adding to my IP portfolio which isn't much at the moment and want to know if North Frankston is seen as a good area. Thanks.
Frankston. Which area is best?
- Thread starter PeterD
- Start date
PeterD said:
Frankston North is the very cheapest part of Frankston.
Around Christmas you could buy 3br houses there for around $160-170k. The market appears to have risen since, but there is still choice in the $180 - 200k range.
Your unit will give good depreciation benefits but the rental yield will only be about 4%. With an older house at a keen price you should get 5%. You won't get as much building depreciation but you've got a better land component.
So in summary, if I had $220k, I'd buy a 3br house, not a unit. And that sort of budget is enough for something outside Frankston North (prices rise as you go south).
Thus $220k for a 2br unit in the worst part of Frankston sounds overpriced and I woudn't buy it.
Regards, Peter
A UNIT? NORTH FRANKSTON? 220K????
Run, don't walk, as far away from this "deal" as possible.
Sorry - I can't say North Frankston is seen as a "good" area.
You can buy a 3 bedroom house, ex Housing Commission- as is most of North Frankston, for $165K.
Please be careful buying in an area you don't know. North Frankston is the cheapest area in Frankston district. I'm not saying you shouldn't buy there period (though I wouldn't) but make sure you know exactly what you're getting in to. I guess it depends on your investment strategy. Frankston Central is where you might want to look, or Frankston Heights. You can get a 3 bedroom house on a decent block for $220 if you're lucky, but it may need some work. If you really want a unit you wouldn't want to pay more than the $220k for a new-ish one in a REALLY nice street in Central or FH.
Frankston South is the most sought after area, and you may want to take some time to have a look there first. Admittedly I only buy houses, so I don't pay much attention to unit prices. The cheapest areas of Frankston South (around the high school) have come back a bit & you can buy a house from around $300k.
Run, don't walk, as far away from this "deal" as possible.
Sorry - I can't say North Frankston is seen as a "good" area. You can buy a 3 bedroom house, ex Housing Commission- as is most of North Frankston, for $165K.
Please be careful buying in an area you don't know. North Frankston is the cheapest area in Frankston district. I'm not saying you shouldn't buy there period (though I wouldn't) but make sure you know exactly what you're getting in to. I guess it depends on your investment strategy. Frankston Central is where you might want to look, or Frankston Heights. You can get a 3 bedroom house on a decent block for $220 if you're lucky, but it may need some work. If you really want a unit you wouldn't want to pay more than the $220k for a new-ish one in a REALLY nice street in Central or FH.
Frankston South is the most sought after area, and you may want to take some time to have a look there first. Admittedly I only buy houses, so I don't pay much attention to unit prices. The cheapest areas of Frankston South (around the high school) have come back a bit & you can buy a house from around $300k.
Spiderman said:
AGREE 100%
I was down in Frankson on the weekend looking for IP opportunities, mainly Frankston south in the High school zone. I feel that this area is under valued compared to suburbs either side.
GG
Have been looking at property in Frankston Sth (which could be sub-divided & in Frankston High Scool area) for approx $240k....
buzzlightyear said:
Hey Buzz, maybe we are looking at the same place ??? I will toss you for it. Heads or tails
GG
Frankston North
Frankston Nth has long way to go before you see any improvements.
I spent my younger days around the area. Seems cheap but have a drive around on a Friday or Saturday night and it should reveal a bit more about the place.
The best place to buy in Frankston is the suburbs next door.
Cheers
Frankston Nth has long way to go before you see any improvements.
I spent my younger days around the area. Seems cheap but have a drive around on a Friday or Saturday night and it should reveal a bit more about the place.
The best place to buy in Frankston is the suburbs next door.
Cheers
Frankston North is a pretty rough area with lots of housing commission.
You are better off looking at Frankston Central, Seaford or Langwarrin if you want to stay within your price range. As others have already suggested, for 220K you can get a 3BR house which may need some work done but with potential to sub-divide.
Frankston South is more expensive but has great potential .
Have a look at:
http://www.theage.com.au/articles/2003/03/07/1046826530324.html?oneclick=true
and
http://home.vicnet.net.au/~phillip/i_mzoliv.htm
You are better off looking at Frankston Central, Seaford or Langwarrin if you want to stay within your price range. As others have already suggested, for 220K you can get a 3BR house which may need some work done but with potential to sub-divide.
Frankston South is more expensive but has great potential .
Have a look at:
http://www.theage.com.au/articles/2003/03/07/1046826530324.html?oneclick=true
and
http://home.vicnet.net.au/~phillip/i_mzoliv.htm
Thank you folks. I've just found out that the property is in Frankston, not North Frankston. It runs off Skye road, if anybody is familiar with the area. The property behind this unit sold 2 weeks ago for $220K and I'm guessing the front unit would hold more value. Although back unit has double garage, front unit only has single carport.
Marina at Frankston
Be Carefull
This frankston marina is all hot air at the moment. Has anyone seem a developer mentioned who will be putting up the money.
"A Government-appointed planning panel has given cautious backing to the long-awaited marina at Frankston"
At the momnet its all Local and State Gov people making all the noise.
Last time I was at Frankston Beach my daughter found a siringe floating in the bay.
Be Carefull
This frankston marina is all hot air at the moment. Has anyone seem a developer mentioned who will be putting up the money.
"A Government-appointed planning panel has given cautious backing to the long-awaited marina at Frankston"
At the momnet its all Local and State Gov people making all the noise.
Last time I was at Frankston Beach my daughter found a siringe floating in the bay.
PeterD said:
I had a quick look around that area a couple of weeks back. It's a better location than Frankston North, and the streets are neat, but I still wouldn't buy it. It will be negatively geared, you might be stuck with a strata title and as the land component is small it is unlikely to apppreciate greatly.
The public transport there is atrocious (unless you don't mind 7pm curfews). Aas a tenant I'd want something walkable to at least one of Karingal SC, Monash Uni, the beach and/or Frankston town centre and wouldn't consider anything else. A railway station would help as well.
To me location and convenience is even more crucial with units than houses.
With a house, you can assume that tenants will have at least one car. A location within 2-5km of major shopping centres, schools and a railway station might be acceptable. Housebuyers may put up with a bit of inconvenience if it means them buying their first home (that they can only just afford) but unit renters won't, and why should they?
For units I think a higher standard (<10 min walk from most of the above) is required to provide sufficient scarcity value to assure capital growth and popularity with tenants (who are less likely to own a car than house renters).
Also though the unit might be sparkling now, in 20 years time it won't be. So you will be competing against newer units for tenants, and units appear to age faster than houses. This need not affect rentability (apart from a slightly lower rent) if the unit is well located, but if poorly located then it could be fatal to maintaining occupancy.
Also consider opportunity cost. I see three better options:
1. A 3br house in a handy Frankston suburb, as discussed above
2. A well-located villa in a suburb closer to the CBD and facilities but in any case near a railway station.
3. A superbly-located unit walkable to the beach and Frankston CBD
To me any of these make more sense than something on the way to Skye and 90 min from the CBD. True it may be older, but the land value component would be higher and vacancies lower due to its convenience.
Peter
Frankston South - more on the exxy side, up into the millions.
Frankston Central & Frankston Heights - both good growth potential becasue of new developments and are within the FHS zone hence rent is always sought by families trying to get their children into Frankston High.
Here are a couple of other links that may be of interest:
http://www.id.com.au/frankston/forecastid/default.asp?WebID=10&MnID=1&PgID=1
http://www.id.com.au/frankston/commprofile/sitemap.asp?WebID=120#AreaLinks
http://www.reiv.com.au./home/inside.asp?ID=406&pnav=141
Check out the February issue of API there is a feature article on Frankston that is worth a read.
I personally believe Frankston North, albeit less desirable, will eventually see a transformation but it will take many years yet, which is why I have invested in Frankston South and Heights.
Cheers,
Jo
Frankston Central & Frankston Heights - both good growth potential becasue of new developments and are within the FHS zone hence rent is always sought by families trying to get their children into Frankston High.
Here are a couple of other links that may be of interest:
http://www.id.com.au/frankston/forecastid/default.asp?WebID=10&MnID=1&PgID=1
http://www.id.com.au/frankston/commprofile/sitemap.asp?WebID=120#AreaLinks
http://www.reiv.com.au./home/inside.asp?ID=406&pnav=141
Check out the February issue of API there is a feature article on Frankston that is worth a read.
I personally believe Frankston North, albeit less desirable, will eventually see a transformation but it will take many years yet, which is why I have invested in Frankston South and Heights.
Cheers,
Jo
Yes we know....NORTH FRANKSTON IS A DOG!!! Yawwwwwwnnn
But you are forgetting that ALL of Frankston is not NORTH, and there are other areas are worth a (first, second and even third) look.
Keep an open mind, look around, take a drive down there, see the "dive" that Frankston North is of course, but don't forget to also check out the million dollar beauties that adorn the coastline.
I remember once upon a time the same was said of Ashburton; it's a whole new ball game now; my how soon we forget!!!
YawwwwwwnnnBut you are forgetting that ALL of Frankston is not NORTH, and there are other areas are worth a (first, second and even third) look.
Keep an open mind, look around, take a drive down there, see the "dive" that Frankston North is of course, but don't forget to also check out the million dollar beauties that adorn the coastline.
I remember once upon a time the same was said of Ashburton; it's a whole new ball game now; my how soon we forget!!!
Monopoly said:Yes we know....NORTH FRANKSTON IS A DOG!!!
But you are forgetting that ALL of Frankston is not NORTH, and there are other areas are worth a (first, second and even third) look.
Keep an open mind, look around, take a drive down there, see the "dive" that Frankston North is of course, but don't forget to also check out the million dollar beauties that adorn the coastline.
I remember once upon a time the same was said of Ashburton; it's a whole new ball game now; my how soon we forget!!!
Monopoly,
Totally agree, i used to live in Ashburton 20 years ago, scary place back then.
Re: Frankston I am a big fan and i hope to buy two IP's in Frankston south this year
GG
Good for you Gordon,
We'll be laughing all the way to the bank when the rest of them are licking their wounds and moaning "damn, I should've bought there when I had a chance."
People so often forget that the much sought after areas were once the underdogs. I can name at least a handful of suburbs that once upon a time people wouldn't even talk about, let alone invest their $$$ in, and now these same people don't have enough $$$ to do so!!!
I have 2 in Frankston, one in Frankston South (beachfront) and one in Frankston Heights, and one in Mornington (also beachfront)!!! I'm a Pennisula beach baby from way back!!!
Cheers,
Jo
We'll be laughing all the way to the bank when the rest of them are licking their wounds and moaning "damn, I should've bought there when I had a chance."
People so often forget that the much sought after areas were once the underdogs. I can name at least a handful of suburbs that once upon a time people wouldn't even talk about, let alone invest their $$$ in, and now these same people don't have enough $$$ to do so!!!
I have 2 in Frankston, one in Frankston South (beachfront) and one in Frankston Heights, and one in Mornington (also beachfront)!!! I'm a Pennisula beach baby from way back!!!
Cheers,
Jo
A friend of mine just sold a house in North Frankston for $180k bought it in 1997 for $65,000-. This is an old housing commission area and has a pretty bad history over the years. I think the area used to be called The Pines.
Hey guys, this is my first post, but I have been following the forum for a while. I find it interesting that so many of you are so quick to rubbish North Frankston. Maybe my strategy is a little different to others, but 10 years ago I was hearing the same talk about places like Bondi Beach and Redfern in Sydney.
When most people wouldn't even drive through these suburbs, the smart investors were buying dirt priced properties. The rest of us missed the boat because, at the time, the suburbs had a few problems, and many of us were too worried about putting money in there.
I don't own property in North Frankston, but have been looking there recently. IMHO, if you can buy a BV house on 800+sq m, 5min from the beach, close to shopping centres, 3 schools, 30 min from CBD and a yield of around 5.5-6%, under 185k, then Mr capital gain can't be too far down the track. I can't think of too many places that fit these criteria close to other capital cities.
I have seen many houses like this, and I have seen some positive changes in the suburb over the years. The fact the values have risen between 12.5 and 18% over the last year is also an indicator that the fundamentals are right for capital growth, and other investors are noticing it.
Again this is MHO, and may well be right off the mark - but it is often the suburbs that have a tainted past, that have the brightest futures.
Just a thought.
When most people wouldn't even drive through these suburbs, the smart investors were buying dirt priced properties. The rest of us missed the boat because, at the time, the suburbs had a few problems, and many of us were too worried about putting money in there.
I don't own property in North Frankston, but have been looking there recently. IMHO, if you can buy a BV house on 800+sq m, 5min from the beach, close to shopping centres, 3 schools, 30 min from CBD and a yield of around 5.5-6%, under 185k, then Mr capital gain can't be too far down the track. I can't think of too many places that fit these criteria close to other capital cities.
I have seen many houses like this, and I have seen some positive changes in the suburb over the years. The fact the values have risen between 12.5 and 18% over the last year is also an indicator that the fundamentals are right for capital growth, and other investors are noticing it.
Again this is MHO, and may well be right off the mark - but it is often the suburbs that have a tainted past, that have the brightest futures.
Just a thought.
