Is Frankston Going to Boom?

[tristanvs]

There are quite a few threads suggesting Frankston offers good value and will experience substantial growth in the near future.

Just wondering if anyone can tell me why this would now be the case? People have been saying for 20 years that Frankston is going to boom, however this is yet to happen, why would it boom now?

 

[WattleIdo]

It's not going to boom. Don't buy in thinking it will. It's good value, that's all.
The yields are still not great.
If you want pos cash flow, be careful.

It's not ready to boom yet.

 

[alicudi]

Hi

Well I believe the good value is justified by its pricing versus other suburbs in Melbourne.

I believe it has a high chance of experiencing great capital growth due to a couple of factors such as:

The proposed Marina
Cliff top homes with sensational views
True waterfront homes in Gould Street and a couple of others
Shopping centres such as Frankston and Karingal
Local council encouraging developments.

All in all it seems the whole area is trying to take a pro-active approach to making the area better...will it work?....who knows?

I have had a couple of properties in Frankston that I have purchased and sold and did very well out of them. Such as the following:

3/402 Nepean Hwy Frankston purchased for $47,500 around 1997 and sold for $94,500 2.5 years later.

23/325 Nepean Hwy Frankston purchased for $80,000 and sold for just over $120,000 6 months later.

I have a few others but they are a couple that spring to mind at the moment.

Other local areas around Frankston such as Carrum Downs I was able to nearly triple my money in just over 12 months by purchasing a block of land in a factory estate for $55,000 and sold it for $145,000.

I believe the area has better opportunities but you just need to know what to look for.

Regards,

alicudi

 

[neeko]

I see frankston as good value for money it's going up with inflation. That's where I'm seeing things at the moment

Nick

 

[TMNT]

Calling our resident Frankston spruiker grand_dad!!!!!
You are needed in the Principals office

 

[Jake Milne]

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.

 

[grand dad]

The yields are still not great.
.

I totally disagree. If one buys intelligently, yields of 5-6% are more than possible. Of course, if you pay too much for your Frankston IP, you'd have to settle for paltry yields. I could elucidate at length but then I'd be called a spruiker.

Tips:
- never overpay for Frankston property, there's plenty of value around
- choose older, rentable brick houses on largish dual occ blocks
- when seeking to buy, choose from the lowest decile of property currently on the market. That will ensure you won't get burnt if things go wrong.

Buyers agents dislike Frankston. It's off their radar. They don't get it and probably never will. As a result, prospective buyers are best off doing it themselves.

This is a useful tool: http://house.ksou.cn/p.php?q=Frankston,+VIC

Frankston's employment stats are worse than Victorian/Australian benchmarks. .

Plenty of retirees in the area, hence the skewed data. Before someone brings in the usual cannard - crime in Frankston is lower than that of inner-city Melbourne. St Kilda and Richmond once had higher levels of crime than Frankston ever did.

 

[nikkig]

We just bought our first IP in Frankston North.
Its a nice 3 bedder on the rim of the estate, near cnr of Fran-Dand & Ballarto Rds. We got it for $252k, vendor was originally asking $275-295 but had dropped price to offers above $255k when we made our offer (she was desperate and there were no takers - possibly because of the 'bright and cheerful' colour scheme). We've spent the last 3 weeks doing some minor renos ($10k worth). PM had a tennant for us before we even had time to sign the PM contract! Tennant moves in on 1st August @$270/wk.
We're happy with those figures (for newbies).
I think there's some great value to be had in the area, but you certainly can't go in blind, make sure you do your DD.

 

[impala67]

...I have had a couple of properties in Frankston that I have purchased and sold and did very well out of them. Such as the following:

3/402 Nepean Hwy Frankston purchased for $47,500 around 1997 and sold for $94,500 2.5 years later.

23/325 Nepean Hwy Frankston purchased for $80,000 and sold for just over $120,000 6 months later...

Thanks alicudi always good to see numbers...much work done to these?

 

[pieman]

Not sure if it will boom as its full of low lunging bogans. I nearly purchased a single level block of 8 a few years ago(see previous posts) - thank god i didnt, hasnt gone up alot.
You dont see aspirational asians buying there, willbe years before it takes off. Better where the chinese buy - out east, forget aussie boganville ie frankganistan. I ride my bike down that way all the time, mate of mine and i had rocks thrown at us at 7 in the morning after some low lifes left the pub. Wouldnt get that in box hill.

 

[alicudi]

Thanks alicudi always good to see numbers...much work done to these?

Hi

To 3/402 Nepean Hwy Frankston all I did was paint all the walls only because the previous owner sold it to me with pink colored walls.

To 23/325 Nepean Hwy Frankston I had to install curtains for three windows that were along a single wall so about a 4 to 4.5 metre span.

That was it.

Regards,

alicudi

 

[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.

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?

 

[Tony3008]

I see frankston as good value for money it's going up with inflation. That's where I'm seeing things at the moment

I just got the latest rates notice for my unit in Reid Street (south of CBD but not quite in Frankston South) and the 2014 valuation is $290K, down from $295K July 2012. I know rates valuations aren't the same as paid-for ones, but even so I was surprised to see a down value.

 

[grand dad]

Seaford is another beachside suburb to consider. For less than $400,000 you can get a perfectly rentable old brick house on a subdivisible block.

Buy, hold and reap the rewards in a few years time.

Three things to think about:

1. Cost - the cheaper the better. Never overpay!
2. Block size - you need around 600sqm if you plan to redevelop
3. Rentability - 5% is the norm in Frankston/Seaford, provided you don't overpay.

For $300-400,000 there are no shortage of decent houses for sale in both Frankston and Seaford.

IMHO its best to keep away from the houses closest to the beach as these are fully priced. Fine for a PPOR. Not so good as an IP.

To the OP: I again stress the need not to over-pay. Chase the value situations if you want capital gain. If it's depreciation benefits you are chasing, Frankston/Seaford houses may not be for you

 

[tristanvs]

Not sure if it will boom as its full of low lunging bogans. I nearly purchased a single level block of 8 a few years ago(see previous posts) - thank god i didnt, hasnt gone up alot.
You dont see aspirational asians buying there, willbe years before it takes off. Better where the chinese buy - out east, forget aussie boganville ie frankganistan. I ride my bike down that way all the time, mate of mine and i had rocks thrown at us at 7 in the morning after some low lifes left the pub. Wouldnt get that in box hill.

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.

 

[datto]

As an investor in Sydney's scummy suburbs and as someone posted the word "bogans" I was immediately drawn into this thread.

Apart from that I have nothing further to add.

 

[grand dad]

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.

Yes, it is true that Frankston High School produces some impressive results, mainly from its Asian-origin students.

Be aware that those Asians who are slowly moving into Frankston are middle-class immigrants. They are not to be confused with the ultra-monied apartment buying types from China who prefer inner-city Melbourne.

As an investor in Sydney's scummy suburbs and as someone posted the word "bogans" I was immediately drawn into this thread.

The higher rents are seeing the bogans moving inland.

Bogans moving out + Asians arrivals + Redevelopment = Good long term Capital Gain

 

[S.T]

I just got the latest rates notice for my unit in Reid Street (south of CBD but not quite in Frankston South) and the 2014 valuation is $290K, down from $295K July 2012. I know rates valuations aren't the same as paid-for ones, but even so I was surprised to see a down value.

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

 

[datto]

The higher rents are seeing the bogans moving inland.

Bogans moving out + Asians arrivals + Redevelopment = Good long term Capital Gain

Good sign IMO

 

[Scott No Mates]

Bogans moving out + Asians arrivals + Redevelopment = Good long term Capital Gain

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).