Frankston

T

Twiggy

Hi Guys,
I own a 2 bedroom, 1 bathroom unit in Camberwell VIC which I live in and have paid off 1/3 of the purchase price. I am looking at borrowing against the equity of my property to buy an investment property at around 400K.
I like Frankston with its bay-side location, Monash University, Train station, East Link and the upcoming opening of the Peninsula Link. Can I get your insight of Frankston as a location to invest for the long term? Also what parts of Frankston are best?

Thanks

Tim
 
a long shot

I think frankston is a long term shot. Do not expect any immediate capital gains due to the high number of skanks that live in the area. However, it is nice water front space with reasonable proximity to melbourne.

I think the good parts of frankston are near olivers hill and anywhere with good views of water.
 
Hi China,
Thanks for the reply.
My options in the 400K budget are either a 2 bedroom 1 bathroom unit/ townhouse around Olivers Hill/ Bay area or a 3 bedroom, 2 bathroom house in South Frankston/ Bunarong Park/ Jubilee Park region. What are your thoughts?
 
Hi Twiggy,

Have you thought of maybe investing in Sydney? Houses/flats etc are in short supply there and tenants are in abundance!

Also, there is a greater prospect for growth there than in Melbourne at the moment.

I think Frankston is in a bad way at the moment with high unemployment (I have 2 IP's there and am considering selling one).

Don't want to put you off the area - but at least go in with your eyes wide open. I've just had a tenant do a runner and have to wait until 24th April before the VCAT hearing before I can gain access to the property. The property is insured, so not too worried - but it is an inconvenience!

Regards Jason.
 
jingo said:
I've just had a tenant do a runner and have to wait until 24th April before the VCAT hearing before I can gain access to the property. The property is insured, so not too worried - but it is an inconvenience!
Click to expand...

At least yours ran, my one refuses to leave or pay rent. Just been to VCAT for the third time and hopefully finally getting access any day now. I too have insurance, but it only covers 10 weeks, and I hit the 10 week mark of unpaid rent a few days ago. If I could turn the clock back, I'd think twice about investing Frankston, due to the type of tenants in the area. :mad:
 
china said:
I think frankston is a long term shot. Do not expect any immediate capital gains due to the high number of skanks that live in the area. However, it is nice water front space with reasonable proximity to melbourne.

I think the good parts of frankston are near olivers hill and anywhere with good views of water.
Click to expand...

lol skanks.
 
My tenants have paid the rent on time and have never had an issue for the last 4.5years, that I have owned in Frankston.

I know however that rentals have been depressed for the last 6 months. Based on my discussions with a couple of PM's, there has been an increase in activity in the first 3 months both in rentals & sales. I suspect though, that sale price are still subdued and will be for this year. No need to rush & buy. At the same time, at least away from the top end of the market, I don't see distressed sales.

And if the RBA cuts (and banks pass on) this will help confidence, if nothing else.
 
Biggles said:
At least yours ran, my one refuses to leave or pay rent. Just been to VCAT for the third time and hopefully finally getting access any day now.
Click to expand...

When the system allows a disgraceful tenant to stay in someone else's property free of charge, there is certainly a problem.

Biggles said:
I too have insurance, but it only covers 10 weeks, and I hit the 10 week mark of unpaid rent a few days ago.
Click to expand...

Hopefully you will be able to take the bond which may help cover another couple of weeks rent. (Probably another 4?) by which time you should have access.

Does your insurance cover you for any damage caused by the tenant?

Biggles said:
If I could turn the clock back, I'd think twice about investing Frankston, due to the type of tenants in the area. :mad:
Click to expand...

mmm. Me too!! :)
 
Hey guys,
Thanks for your knowledge and insight. I agree Frankston has a reputation as an "undesirable" or "skank" area. However, as far as I have been informed it is a very divided area. North Frankston where the housing commissions are is a no go zone. However south frankston is more desireable and in particular a small pocket around Oliver's Hill.
Where were your properties?
Tim
 
Twiggy said:
Hey guys,
Thanks for your knowledge and insight. I agree Frankston has a reputation as an "undesirable" or "skank" area. However, as far as I have been informed it is a very divided area. North Frankston where the housing commissions are is a no go zone. However south frankston is more desireable and in particular a small pocket around Oliver's Hill.
Where were your properties?
Tim
Click to expand...

Mine are in Karingal - not Frankston nth. Just as long as you are going in with your eyes wide open. Could be good to speak to a property manager in Frankston about the better areas. I see this set back as a bump in the road. Regards Jason
 
Hmm...interesting topic. I was planning to buy something in Frankston South (Frankston High School zone) area as my first home for PPOR. Scratching my head now...maybe I should go back looking in Berwick.
 
Olivers hill

Twiggy said:
Hi China,
Thanks for the reply.
My options in the 400K budget are either a 2 bedroom 1 bathroom unit/ townhouse around Olivers Hill/ Bay area or a 3 bedroom, 2 bathroom house in South Frankston/ Bunarong Park/ Jubilee Park region. What are your thoughts?
Click to expand...


Definitely the Olivers Hill area is preferable in terms of quality of living and quality of citizenry.
 
Lt.Shmidt said:
Reading this topic I can see the neiborhood there is not the best. But maybe south part of Frankston is different.
Click to expand...

Schmidt are you serious? Looking at Berwick over Frankston south? You live In patto lakes surely you k now what Frankston is like as it's next door?
Being from beauy I am naturally biased to anything that is on the water. I would live in Rosebud over Berwick any day. Nothing really wrong with Berwick but I can't stand the whole 'house and land' style development suburbs/ towns. People are paying more for their new homes on 400sqm in these places than what they can sell them for. Sad
 
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