Is Frankston Going to Boom?

[WattleIdo]

One of mine went down on the rated value by 8%! The Council valuers aren't predicting boom times, that's for sure.

I wonder what's got into the council?

To me, this data shows that houses with 600m2 are increasing in value at the moment (assumption that more bedrooms = more land in Franga).

And the graph shows that stock is moving - the glut has cleared and it's all happening.http://www.sqmresearch.com.au/graph_stock_on_market.php?sfx=&postcode=3199&t=1
Couldn't post graph without giving away anonymity so here's the link to sqm stock on market this week.

 

[SOP]

The 2014 rating valuation has a valuation date of 1st January 2014. Not July 2014.

 

[datto]

But that's not what has happened in Datto's backyard and prices have gone through the roof (admittedly a very low roof but still a roof).

The rising swell has lifted all and sundry in the Sydney market. No suburb has been immune to increasing property valuations. Any bogan who somehow, inexplicably acquired a property (most likely inherited) is now cashed up. They can now afford to register their commodore (but still choose not to).

 

[Spades]

Scott No Mates,that's a low pitch at datto

LOL datto,you should start a thread is Mt.Druitt going to boom or rego evasion?

Cheers Spades.

 

[WattleIdo]

I read something the other day saying that there were a lot of Asians moving to Frankston due to the VCE results the public high school achieves.

The bogans are making their way out to Pakenham, Cranbourne and Clyde.

Are you able to post the article?

 

[Spades]

Here's 2 links Wattle,don't if it helps :

http://www.fhs.vic.edu.au/Newsletters/Newsletter01.pdf

http://www.theage.com.au/victoria/l...e-students-wish-upon-atar-20121217-2bi3l.html

Cheers Spades.

 

[S.T]

I wonder what's got into the council?

To me, this data shows that houses with 600m2 are increasing in value at the moment (assumption that more bedrooms = more land in Franga).

And the graph shows that stock is moving - the glut has cleared and it's all happening.http://www.sqmresearch.com.au/graph_stock_on_market.php?sfx=&postcode=3199&t=1
Couldn't post graph without giving away anonymity so here's the link to sqm stock on market this week.

For mine, the land value remained the same but the CIV was lower, meaning building is worth less but land remains same. I'm not fussed, means cheaper rates!

 

[alicudi]

One of mine went down on the rated value by 8%! The Council valuers aren't predicting boom times, that's for sure.

Hi

I don't think, actually I know that valuers don't take into consideration if a boom or a bust is about to happen when calculating property values for council rates.

I am led to believe they take into consideration past sales results which in the case of current rates notices will only be up to the 1st of January 2014 and they only look at properties within a given sub market group and use a mass automated model to then determine a value for each property...it is all done by software and they get things nearly right about 85% to 90% of the time or they at least think they do!

But as I do not work in the industry I cannot confirm 100% of this.

Regards,

alicudi

 

[S.T]

Hi

I don't think, actually I know that valuers don't take into consideration if a boom or a bust is about to happen when calculating property values for council rates.

I am led to believe they take into consideration past sales results which in the case of current rates notices will only be up to the 1st of January 2014 and they only look at properties within a given sub market group and use a mass automated model to then determine a value for each property...it is all done by software and they get things nearly right about 85% to 90% of the time or they at least think they do!

But as I do not work in the industry I cannot confirm 100% of this.

Regards,

alicudi

Yes they just use software, I've challenged one before but for a different council.

 

[WattleIdo]

OK.
My CIV looks the same as always but haven't compared Site Value to last rates notice yet.
The CIV is much lower than what I paid for the place - is that normal?
And what does Net Annual Value mean?

 

[S.T]

Net annual value is annual rental income from memory.

 

[SOP]

for a residential property the Net Annual Value is 5% of the CIV.

It is only different for non residential properties.

 

[S.T]

for a residential property the Net Annual Value is 5% of the CIV.

It is only different for non residential properties.

thanks, that makes sense!

 

[WattleIdo]

Have just checked previous rates and current rates.

For mine, the land value remained the same

for mine the site value has gone up

but the CIV was lower!

my CIV is lower too. Maybe because of newer and renoed units/houses in the area?

 

[tristanvs]

Frankston isn't a buy and hold suburb. There are better suburbs for capital growth and/or yield if B&H is your strategy.

Frankston is a suburb that could be considered undervalued when compared with other bay side suburbs. It may be due to associated stigma rather than infrastructure and economic factors but one should be aware that Frankston's employment stats are worse than Victorian/Australian benchmarks.

That said Frankston may be a favourable area where one could potentially find a property that could be bought well and would still have scope to add value via sub-division and/or construction.

It's not an ideal area for beginners, it's more of an intermediate level as it requires a more thorough selection process and more complicated, hands on strategies.

Jake could you please give me an example of a suburb you consider better for buy and hold that you could purchase for under $400,000?

Reply With Quote

 

[Jake Milne]

Jake could you please give me an example of a suburb you consider better for buy and hold that you could purchase for under $400,000?

With that budget and a buy and hold strategy I think you'd be better served researching major regional hubs. Bendigo and Ballarat for example.

 

[Spades]

Hi Jake,

Your kidding right?

Farout!

Cheers Spades.

 

[grand dad]

Apparently, Frankston High sent three kids (all of Asian-Aussie origin) to study Medicine last year. Not bad for a supposedly bogan area. Not many state schools can claim the same.

With that budget and a buy and hold strategy I think you'd be better served researching major regional hubs. Bendigo and Ballarat for example.

So you are recommending one-horse towns where you yourself own property? Surely there's a conflict of interest there.

Anyone paying $400,000 for a house in these o ne horse towns is going to see a capital loss. Better off buying a rentable $300,000 house on a dual occ site in Frankston or Seaford. The worst scenario will be a 5% rental yield. Hardly anything to sneeze about.

 

[Spades]

Apparently, Frankston High sent three kids (all of Asian-Aussie origin) to study Medicine last year. Not bad for a supposedly bogan area. Not many state schools can claim the same.

3 kids of Asian-Aussie origin,how many kids in that school?

Are you now spruiking asion commodities

Geesh spruik much? Market will decide,1st you bang on about Valuer General valuations etc and now add on different angles/race etc.

This spruik is bad as one in cairns...Again let it rest,you're doing a diservice by saying everything bar being silent.Think about it?

Cheers Spades.

 

[Badger]

3 kids of Asian-Aussie origin,how many kids in that school?

Are you now spruiking asion commodities

Geesh spruik much? Market will decide,1st you bang on about Valuer General valuations etc and now add on different angles/race etc.

This spruik is bad as one in cairns...Again let it rest,you're doing a diservice by saying everything bar being silent.Think about it?

Cheers Spades.

Sometimes people who invest in an area feel the need to reassure themselves. being to confident in an area is unhealthy!