Good ol' Frankston.

[The_Bludger]

Hi, I've been painting and doing a general clean-up of one of my investment properties in Frankston which is beach side of Foot street shops over the last couple of weeks and I got to say, it's actually not a bad area at all. I was thinking about selling it to fund another Eastern suburbs buy, but after having spent the last 3 weekends there, I'm not going to now. The area really grows on you and as we all know, it's got a lot of potential. When Frankston takes off, hold on. When will this happen? Who knows, but I get the feeling it's going to be pretty soon due to the ridiculous prices being paid closer to the city.

I've got great neighbours, lots of infrastructure, all the big shops are there and even though there are a few weird looking folk around, I really like it - and I'm a bit of an Eastern Suburbs snob too. I picked it up 5 years ago at $345k, just before the 2010 mini boom there, now valued at $410k. Not massive growth, but a new lick of paint and general tidy-up will make this property a positively geared property so can't complain too much. There's a also a fair few developments going on, so all good news for the area.

Anyway, just thought I'd share those thoughts with you all.

 

[Peter_Tersteeg]

Over the past 5 years (since 2009), the market has gone up, dropped and recovered. The figures you've quoted indicate growth of about 18% over the last 5 years. Given you essentially bought near the peak and then there was a correction, it isn't all that bad, it's reasonably in line with the rest of the market in the outer suburbs.

What's interesting is the statement, "When Frankston takes off". If you look over the past 15 years (my personal memory of property values), various properties in different parts of Frankston have sold for $40k, $80k, $130k, $210k, $300k, $400k over time.

If you look over the longer term, Frankston has already taken off, many times over. It's not any different to any other bayside suburb in Melbourne in its overall performance. The next big price jump might just be around the corner or it might have already happened; it's not any different from anywhere else.

This suggests to me that Frankston is doing fine, so unless there's a specific reason to get rid of it, you might as well keep it.