Is it time for Frankston?

[grand dad]

Frankston Median Up

The latest quarter's median price for Frankston came out this week. http://www.realestateview.com.au/propertydata/median-prices/victoria/frankston/ The median price of a house in Frankston has gone up almost 10% in the last quarter and is now $362,500. This is still below its all time high of 2010.

As I mentioned earlier in this thread, Frankston has some catching up to do and current prices are more than affordable. There are still plenty of buying opportunities around the early $300s, sometimes even less. http://www.domain.com.au/search/buy...rankston&extype=3,4&displmap=0&sort=price-asc

Personally I believe that the best capital gain will be had by buying into the lowest quartile of Frankston property. The lower quartile median for the Dec quarter was $330,000. Obviously if a buyer pays less than that for a solid brick house, they are not doing badly at all.

Investor2009, your house was in a great location and was recently renovated. If I recall correctly, in the first two weeks of it being listed you got 22 people through the house and 7 offers. I'm curious as to why you accepted the first offer you got rather than hold out for more? Did you have a bad tenant or some other issue that made you sell so quickly? You sold for $350,000 right?

 

[investor2009]

It was a tadd more but close enough. I just wanted it gone and those others took contracts but supposedly never made an offer so out of fear I accepted

 

[investor2009]

Yes probably and unfortunately for me. On the other hand a property is only worth what people are willing to pay for it. IF the agent is honest. Win some, lose some but I still make a profit so not so bad

seems about right the agent was after a quick sale? that sounds about right.

 

[investor2009]

Although.. The agent never quoted more than $360 as a figure so it still sounds fair. I just don't know the market intimately though so relied on him. He said we should get between 50 & 60 and we did

 

[grand dad]

It was a tadd more but close enough. I just wanted it gone and those others took contracts but supposedly never made an offer so out of fear I accepted

Good luck to the new buyers - I'm sure its a lovely house. How will you reinvest your windfall Investor2009? Plans for a holiday?

I remain convinced that the best capital gain in Frankston will be for those who obtain property at or below the lower quartile median of $330,000. More so if they can score a dual occ site with a rentable old house on it.

For me, being in Frankston is a commercial decision.....the aim is to buy stuff cheaply, wait 5-10 years and either develop myself or sell to a developer. Personally I don't see any point in paying a premium for a beautiful house unless one plans to live there. For this reason, I wouldn't pay anything aboove the latest quarters median price. It will be the ugly ducklings that outperform.

 

[investor2009]

In a nutshell, Im paying down the mortgage and semi retiring. So we've made it to the first leg of our journey, going to buy a fancy IP 105% financed and sit back n watch that grow with the others. Still same investment results n numbers but way less mortgage and work.

 

[grand dad]

This one popped-up on my radar today. 36 Fingal Drive Frankston. A brick, rentable house on a potential dual occ site in Frankston, selling for just $250,000?! That's $112,000 below the current Frankston median price!

http://www.domain.com.au/property/for-sale/house/vic/frankston/?adid=2010953152

It's supposedly a mortgagee sale. The agent, Juan Merchan, did not even bother to mention in the advertisement that it's on a potential dual occ site. As for the price.......to be honest I think it's bait advertising. But, if true, it represents excellent value. More likely than not its a "sell em quick and move on to the next sale" ploy by the agent.

Whoever gets it at this price has gotten a bargain.

 

[turk]

This one popped-up on my radar today. 36 Fingal Drive Frankston. A brick, rentable house on a potential dual occ site in Frankston, selling for just $250,000?! That's $112,000 below the current Frankston median price!

http://www.domain.com.au/property/for-sale/house/vic/frankston/?adid=2010953152

It's supposedly a mortgagee sale. The agent, Juan Merchan, did not even bother to mention in the advertisement that it's on a potential dual occ site. As for the price.......to be honest I think it's bait advertising. But, if true, it represents excellent value. More likely than not its a "sell em quick and move on to the next sale" ploy by the agent.

Whoever gets it at this price has gotten a bargain.

grand dad

Read the ad, it's an auction in March, quoted at $250k +

 

[grand dad]

Read the ad, it's an auction in March, quoted at $250k +

Thanks Turk. I missed that last bit at the end of the advert saying it was for auction (although they do say they will consider offers beforehand).

If only I had a lazy $250,000 lying around......this house is priced $112,000 below the Frankston median.

The agent selling this house may be good for those hoping to buy property in Frankston. For those hoping to sell, it is best to avoid him like the plague - he is pretty negligent, and has not even bothered to mention the potential dual occ status of the property, something he has a duty to do.

For anyone interested, this site is the only free site I know for recent sales comparables. http://house.ksou.cn/p.php?q=Frankston,+VIC

Addendum: Here is the video from the agent who, in all honesty, does not seem to be the sharpest tool in the shed. http://www.youtube.com/watch?v=S3wq4xO_Ly0

 

[neeko]

Thanks Turk. I missed that last bit at the end of the advert saying it was for auction (although they do say they will consider offers beforehand).

If only I had a lazy $250,000 lying around......this house is priced $112,000 below the Frankston median.

The agent selling this house may be good for those hoping to buy property in Frankston. For those hoping to sell, it is best to avoid him like the plague - he is pretty negligent, and has not even bothered to mention the potential dual occ status of the property, something he has a duty to do.

For anyone interested, this site is the only free site I know for recent sales comparables. http://house.ksou.cn/p.php?q=Frankston,+VIC

Addendum: Here is the video from the agent who, in all honesty, does not seem to be the sharpest tool in the shed. http://www.youtube.com/watch?v=S3wq4xO_Ly0

no its not his duty to tell everyone its a dual occ block, he's an agent he will sell it how he wants to sell it. remember beauty is in the eye of the beholder.

 

[investor2009]

Another thing I dislike about Frankston as an investment is the ridiculously low rents. I was out of pocket almost $10k a year before tax and never saw one increase in five years. I don't doubt theres capital to be made therr in the near future though. I just have different goals right now that work better for me

 

[Player]

..................The agent selling this house may be good for those hoping to buy property in Frankston. For those hoping to sell, it is best to avoid him like the plague - he is pretty negligent, and has not even bothered to mention the potential dual occ status of the property, something he has a duty to do............

This is my favourite type of agent to purchase from.


It could only get better if they failed to return calls and communicate with me as a prospective buyer. The inept (read slack) rea is an investor's greatest ally. They are usually slack with everyone and this puts a lot of buyers off. The persistent investor will be left as one of only a few who have real interest..........sometimes the only one and the vendor will have been subsequently conditioned to reduce expectations or sell out of FOMO that this buyer will walk.

 

[grand dad]

Another thing I dislike about Frankston as an investment is the ridiculously low rents. I was out of pocket almost $10k a year before tax and never saw one increase in five years. I don't doubt theres capital to be made therr in the near future though. I just have different goals right now that work better for me

One has to be very proactive with PMs in Frankston. It pays to remind them constantly that rents need to be raised. Not raising the rent once in 5 years is criminal.

According to SQM research rents have gone up 27% in the last year. SQM says that the median rent is in the vicinity of $1500 a month. If one can secure a cheap old house for around $300,000 thats hardly a bad yield. http://www.sqmresearch.com.au/graph_median_weeks.php?t=1

 

[turk]

One has to be very proactive with PMs in Frankston. It pays to remind them constantly that rents need to be raised. Not raising the rent once in 5 years is criminal.

According to SQM research rents have gone up 27% in the last year. SQM says that the median rent is in the vicinity of $1500 a month. If one can secure a cheap old house for around $300,000 thats hardly a bad yield. http://www.sqmresearch.com.au/graph_median_weeks.php?t=1

Cheap old houses don't rent for median rents, try comparing apples with apples..

For a retired Property Valuer your reading of ads and comparisons of rentals
leaves a lot to be desired.

 

[neeko]

if im renting my house out id have a good teannat than raise the rent by $20 and loose them

 

[neeko]

http://www.youtube.com/watch?v=u2BYmOjXb1c thats frankston to me. :S

 

[grand dad]

Cheap old houses don't rent for median rents, try comparing apples with apples..

For a retired Property Valuer your reading of ads and comparisons of rentals
leaves a lot to be desired.

I had no problems finding well-paying tenants for my low priced cheapies. My lowest yield is 5%, the highest 6%. All of my IPs are in reasonably good shape for their age - I'm certainly not suggesting that anyone buy a house that's falling down or ready for demolition. The trick is to buy something that is rentable so you get money coming in while lodging your redevelopment plans and permits.

I linked this earlier in the thread. http://www.domain.com.au/property/for-sale/house/vic/frankston/?adid=2010953152 It should be rentable for around $290 a week. If sold at $250,000 then the yield works out to around 6%. Nothing to be sneezed at.

 

[neeko]

I had no problems finding well-paying tenants for my low priced cheapies. My lowest yield is 5%, the highest 6%. All of my IPs are in reasonably good shape for their age - I'm certainly not suggesting that anyone buy a house that's falling down or ready for demolition. The trick is to buy something that is rentable so you get money coming in while lodging your redevelopment plans and permits.

I linked this earlier in the thread. http://www.domain.com.au/property/for-sale/house/vic/frankston/?adid=2010953152 It should be rentable for around $290 a week. If sold at $250,000 then the yield works out to around 6%. Nothing to be sneezed at.

thing is GD it'll sell for over 300k.

here is a video i found today http://www.youtube.com/watch?v=H4Kc7BIb_Wc

 

[turk]

I linked this earlier in the thread. http://www.domain.com.au/property/for-sale/house/vic/frankston/?adid=2010953152 It should be rentable for around $290 a week. If sold at $250,000 then the yield works out to around 6%. Nothing to be sneezed at.

Yes rentable at $290 PW not the median of $346PW($1500PM).

Accentuates my point that you need to compare apples with apples which you are not doing.

As a retired Valuer with all your Frankston experience what value do you put on this property?

 

[Player]

Yes rentable at $290 PW not the median of $346PW($1500PM).

Accentuates my point that you need to compare apples with apples which you are not doing.

As a retired Valuer with all your Frankston experience what value do you put on this property?

I'd put it at around the low 300K's..........circa 330K.
Some comps include one on 254 Skye Rd similar block sold for $295,000 in Aug 2013 and another nearby (22 Santa Barbara Dve) slightly bigger block for $373,000 in Oct 2013. I'd buy it off the internet for $250,000.........but that's not what it will sell for.

Grandpa, what's your take?