Is it time for Frankston?

[JamesP]

For reference this one went for $327500. It's only a block or two back from the other and over 100k less. In my opinion the house looks in far better condition also. I understand it's not as central or close to the beach but there's no way there's over 100k difference between those two properties!

http://house.ksou.cn/p.php?q=Frankston&sta=vic&id=434121

 

[SOP]

but there's no way there's over 100k difference between those two properties![/url]

The property on Ebdale Street is zoned Business 5 High Density.

 

[S.T]

For reference this one went for $327500. It's only a block or two back from the other and over 100k less. In my opinion the house looks in far better condition also. I understand it's not as central or close to the beach but there's no way there's over 100k difference between those two properties!

http://house.ksou.cn/p.php?q=Frankston&sta=vic&id=434121

Rail line in between makes a fair difference. Spray is also right next to the freeway. Different areas of Frankston. plus Ebden has different zoning from the advert (opening up more use for the site). Surely be developed into a unit complex like others on the street.

 

[alicudi]

Hi

Any smart investor will realise the differencel between Ebdale Street in Frankston and Spray Street in Frankston.

Both are at two different extremes in terms of what can be done with the site in future.

Regards,

alicudi

 

[Spleena]

Are there any more polarising suburbs than this one! I'm looking for a house in FT for around $300-$350k and chasing a bit of yield. However, my strategy is buy and hold as I'm time poor re: renos. Does anyone have an opinion on the quadrant surrounded by Skye Rd, Cranbourne, Penin Link and FT Freeway?

 

[Truly Exotic]

Rail line in between makes a fair difference. Spray is also right next to the freeway. Different areas of Frankston. plus Ebden has different zoning from the advert (opening up more use for the site). Surely be developed into a unit complex like others on the street.

yes excatly, spray st, is on the better side of the freeway but is renowed and is next to the freeway

the other one is the better side of dandenong rd, plus its better zoning,

prices go up exponentially literally the closer they get to the beach

Goulde st and surrounds you are looking up to a $1m!!

 

[TMNT]

Speaking of ebdale road,

look at these two side by side on the other side of the road,

will be interesting

http://www.realestate.com.au/property-house-vic-frankston-117931347?rsf=emailalert-propdetails

 

[athsaki]

+1 on that one, they are damn terrible

ill bet you opening bid will be at about $280k and if the bids get to $300k, it wont be even on the market

not much you can do unless you go and confront the agent at the end, but all they have to do is lie "oh the vendors changed their mind this morning"

Property went to auction, sold for 327, ( not worth That) reserve was 275 . Definitely under quoting going on... reserve was 275 but they would not take our offer of 280 the the vendor, Go figure

 

[athsaki]

looking at this property at the moment seems good value given its position
http://www.realestate.com.au/property-house-vic-frankston+south-117877843

any thoughts?

Update. we bought this one

 

[athsaki]

Although there are many capital gain prospects for those who get in cheap, one still has be be careful. I have been warning people to be cautious when buying in Frankston. Why over-pay when tere is so much value around?!

http://www.realestate.com.au/property-house-vic-frankston+south-117877843

Buying this house will not get you much, if any, capital gain. It's highly overpriced, given its condition and location. Worst of all, it appears to be structurally impaired. A reno cannot fix the problems which TMNT noticed in the pic. Definitely fit for tearing down. As a Frankston fan, I would not pay more than $350,000 for it. Maybe rent it out for a few years and then tear it down. I say again: this is not worth anywhere near the asking price, given its condition.

Move on folks. If you are chasing capital gain, there is better value elsewhere in Frankston, Seaford or even North Frankston. Plenty of stuff under $400,000, with no reno required. Most are on dual occ blocks. For North Frankston, you get a bigger discount - plenty of rentable houses on dual occ sites, priced well below $300,000

Having just purchased this property I have to disagree with you Grandad. We now have conceptual drawing for 3 townhouses for this block if we choose to go down this path, or option 2. two larger townhouses both with bay views, or we can renovate the house, A quick calculation of renovating will cost around the 120k mark with a conservative sale price of around 780k, No capital gains growth you say? I am not sure what you are seeing in the pictures but construction of current building is sound. Further more the current house is separated in to two, one upstairs unit and one downstairs, so can rent out after a freshen up if we chose to.

 

[athsaki]

Hi

It is no secret I am the 2nd in charge on the somersoft forums for promoting Frankston with grand dad proudly holding 1st position.

However in this instance I have to disagree with grand dad in regards to the property for sale in Kars Street Frankston South. I believe it is a good investment if one is looking to buy property in the premium part of Frankston and either letting it sit as is or renovating it. The capital gain that could be achieved on a site in this location can be very good and that is without having to do any subdivisions.

Living on Kars Street Frankston South is a totally different world to the cheaper Karingal and Frankston North "Pines Estates". Kars Street is on the better side of Frankston very close to the Norman Ave shops and very close to the beach and Mount Eliza.

One should look at the top end of Kars Street as buying in the blue chip part of Frankston and not the cheaper estates. In terms of quality of life it offers no comparison to the cheaper areas. Look around these parts of Frankston South and you will find it very hard to buy another house with bay glimpses in that sort of price range.

Grand dad is going to kill me for my comments and sack me!

Regards,

alicudi

The property in question has wide bay views not just glimpses between trees, and cannot be built out. This was one of the biggest factors why we purchased

 

[athsaki]

http://www.realestate.com.au/property-house-vic-frankston-117919983?rsf=emailalert-propdetails

This one has so much potential, but what will it go for??

This will sell for the price listed. The problem is that they are building something like a three storie youth hostel across the road, building already approved. In my books not a good place to buy.

 

[athsaki]

For those wanting capital gain, do NOT buy anything that is priced above the most recent lowest quartile median. Using this yardstick, the property TMNT has linked to is way overpriced. Barely a year ago, you would have been able to pick up deals like this for $150,000 less than the current asking price.

There is much better value to be had elsewhere in Frankston/Seaford. IMHO you can find cheapies for around $350,000-$400,000. Even in the current hot market, one should not pay more than this if one is chasing decent long term capital gain.

Grand Dad as someone that has been spending most of his time lately looking for property in the areas you mention, I cannot find anything of value in the price range you have stated. Please show me where these properties are. 350-400 in seaford? on beach side of frankston freeway....I cant find them . You are now paying over 300 in Karingal....

 

[athsaki]

Are there any more polarising suburbs than this one! I'm looking for a house in FT for around $300-$350k and chasing a bit of yield. However, my strategy is buy and hold as I'm time poor re: renos. Does anyone have an opinion on the quadrant surrounded by Skye Rd, Cranbourne, Penin Link and FT Freeway?

In My opinion anything that borders st Paul college is going though the roof in price similar to Skye rd, Cranbourne rd quadrant. If yo want to buy in these places buy up quickly. Check it out for yourself have a look at what prices were obtained 6 months ago in these areas and what price they get today. I dont know why the sudden increase all I know it is increasing greatly.

 

[grand dad]

Having just purchased this property I have to disagree with you Grandad. We now have conceptual drawing for 3 townhouses for this block if we choose to go down this path, or option 2. two larger townhouses both with bay views, or we can renovate the house, .

I congratulate you on your acquisition and wish you well. Can you confirm the price you paid? According to the occasionally inaccurate ksou/RP ddata, it sold for $490,000. http://house.ksou.cn/p.php?q=105A+K...ia&sta=&lat=-38.159883&lng=145.11610300000007

Grand Dad as someone that has been spending most of his time lately looking for property in the areas you mention, I cannot find anything of value in the price range you have stated. Please show me where these properties are. 350-400 in seaford? on beach side of frankston freeway....I cant find them . You are now paying over 300 in Karingal....

What you say is partly true. Compared to a year ago, there are fewer outrageously cheap give-away situations for sale. As for the beachside of Seaford - it's out of my range. I only buy on the cheap-end of the market. Just the same, I strongly believe that anyone buying into the lowest price quartile of Frankston property should see decent capital gain in the long run, not to mention yields approaching 5%.

 

[grand dad]

I will go with Grandpappy on the idea of "buy the lowest quartile of Frankston property." It makes a lot of sense as you are paying block value more than anything else.

(With thanks to TMNT for spotting it) This one on Ebbdale Road sounds great. http://www.realestate.com.au/property-house-vic-frankston-117931347?rsf=emailalert-propdetails

Did someone say it sold for $327,000? If so this was certainly a screaming bargain, especially given the size of the lot. Can't go wrong with this one.

 

[athsaki]

Hi Grand dad
Yes 490 is what we paid for the property.
Here is another property that looks like reasonable value until you dig a little further ie. talk to the agent http://www.realestate.com.au/property-house-vic-seaford-118042419 Is listed at 340+ so in my books value is ok, we call the agent up to organise viewing , asked what would buy the property today!!!!! then the agent tells us that they have done a valuation on the property and the valuation is between 430-480K. So in short the vendor is expecting to get somewhere in that range .
why advertise the damn thing at 340+ and waste my time and everybody elses ????????? Agents drive me insane they obviously believe that we have nothing better to do with our time other than to go looking at houses that are under quoting on. this property is certainly not worth what the agent has valued it for. 340-360 is about right not 400-480

So where are all the cheap houses?

 

[athsaki]

I will go with Grandpappy on the idea of "buy the lowest quartile of Frankston property." It makes a lot of sense as you are paying block value more than anything else.

(With thanks to TMNT for spotting it) This one on Ebbdale Road sounds great. http://www.realestate.com.au/property-house-vic-frankston-117931347?rsf=emailalert-propdetails

Did someone say it sold for $327,000? If so this was certainly a screaming bargain, especially given the size of the lot. Can't go wrong with this one.

Not so great when you consider they are building a 3 storie apartment block across the road to house those in need..... good luck with capital gains on that one

 

[athsaki]

I will go with Grandpappy on the idea of "buy the lowest quartile of Frankston property." It makes a lot of sense as you are paying block value more than anything else.

(With thanks to TMNT for spotting it) This one on Ebbdale Road sounds great. http://www.realestate.com.au/property-house-vic-frankston-117931347?rsf=emailalert-propdetails

Did someone say it sold for $327,000? If so this was certainly a screaming bargain, especially given the size of the lot. Can't go wrong with this one.

Buying the lowest quartile may give you a higher percentage return on rental however, in most cases that will be offset by lower capital gains,. I have seldom seen a property that will give you a high return in rental as well as a good capital gains return, it is usually one or the other that is more prominent. This has been my experirence over the last 15 or so years

 

[Lord Shanghai]

why advertise the damn thing at 340+ and waste my time and everybody elses ????????? Agents drive me insane

You will find Frankston agents to be mostly incompetent - the majority are paupers and, despite having low-net worth, seem keen overly keen to dispense what they see as 'advice." I know of only one agent in Frankston who owns an IP - the rest mostly rent and don't have two pennies to rub together.

The "good thing" - if you could call it that - is these same commission-hungry agents who sometimes discount the worth of a property. Get along with one of these types and he/she may well find a few bargains for you.

Buying the lowest quartile may give you a higher percentage return on rental however, in most cases that will be offset by lower capital gains,. I have seldom seen a property that will give you a high return in rental as well as a good capital gains return, it is usually one or the other that is more prominent. This has been my experirence over the last 15 or so years

I respectfully disagree. If one waits patiently, with cash in hand, one can occasionally pick up a decent bargain with massive capital gain potential ie. on a large block and in the lowest price quartile. Most people do not have the patience to wait patiently.....and, as I said, these are rare situations indeed. It would help to schmooze with local agents, rabble that they are.