Is it time for Frankston?

SOP said:
Brick? Looks timber to me? Do you know if the existing house can be kept after subdivision?
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looks pretty weatherboard to me.....

antistar said:
I was in Frankston on the weekend again and saw that most of the southern side of Davey Street has been sold off (3 or 4 lots next to each other right behind the Deck). There will be more high density applications being submitted for here judging by local precedents and the purchase price on these properties. Local council seems hungry and very supportive of high density developments.

Also South east water has reached top level and looks like it is nearing completion. The stretch of Napean Hwy around SEW, Peninsula on the bay leading up to Davey St may soon start blossoming little by little.
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well, SEW building will be another 8-9 months away, hope you realise this, still sooo much needs to be done! the project is very far behind!


as im watching the market, there talking about another half a percent rate cut next year , very possible. and as im watching the frankston market the numbers are still going up, median at 427k (apprarently). rent median up again too.
 
neeko said:
well, SEW building will be another 8-9 months away, hope you realise this, still sooo much needs to be done! the project is very far behind!
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I am happy to wait 5, 10, 20 years for Frankston, no rush:)
Been watching SEW for the last 5 months, good to see it now take shape and rise up to proclaim its presence in the area. The effect of it opening we will have to wait and see but the more activity in the area the better
 
and that's fine, its definitely a long term hold.

as for the number crunching its rising with inflation the numbers are telling me stready growth if your a long term holder of frankston, that's if your in no rush of course.

as for the sew building, remember its a union job so things will take a little longer then there will be defects aswell and stoppage's etc so allow the year for good measure.
 
grand dad said:
http://house.ksou.cn/p.php?q=Frankston&sta=vic&id=518214

This is the kind of textbook example I have referred to in the past. In this case, a rentable brick house on a dual occ block in central Frankston has been sold for a measly $304,500. Capital gain is pretty assured at this price.

Why so cheap? My understanding is that the sales agent is an out-of-town underachiever who presented the first cash offer to the vendor (who had been conditioned down).

So there you go.....a perfectly nice house has been sold in the lowest decile (ie. the lowest 10% of all of this years sales). Although this house is too nice to demolish, it will eventually be redeveloped due to its location and zoning.
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Brick?!?!


It's a cedar weatherboard.....
 
This thread has now been going for 11 months.

What has the capital growth been like over the last year.

Has Frankston out performed any other Melbourne suburb?
 
SOP said:
This thread has now been going for 11 months.

What has the capital growth been like over the last year.

Has Frankston out performed any other Melbourne suburb?
Click to expand...

Pricefinder data for Frankston (3199) Houses

Year Sales Median Growth Low High
2010 783 $366,000 16.2% $60,000 $1,675,000
2011 620 $356,250 -2.7% $114,000 $2,530,000
2012 602 $335,000 -6.0% $87,000 $1,800,000
2013 703 $347,000 3.6% $53,968 $3,000,000
2014 449 $367,000 5.8% $28,000 $3,511,000

Seems to be going along OK
 
MRCCON said:
Brick?!?! It's a cedar weatherboard.....
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Thanks for pointing out my error. My apologies. I hope my advanced age gives me forgiveness.

One thing is certain: as habitable as the house is, it will probably be bowled over and redeveloped due to the land size. I notice the agent did not market it as a redevelopment site - they probably did not bother to call the Frankston City Council.
 
roypropertyinv said:
Hi I've been speaking to the agent regarding this one http://www.realestate.com.au/118375975

Just interested to know peoples thoughts about Aleppo Crescent from those who know Frankston North.
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This is a classic positive geared dual occ situation that much-maligned Frankston is famous for. From the look of things, it has side access and provided the access is more than 2.25m you could well build another house up the back without demolishing the original house. If you could buy the adjacent houses at the same price, better still!

You will note that the agent has not bothered to say its a development site even though it is above 600sqm. Classic Frankston-agent ignorance. Make the most of it and offer $240,000 and see how you go?

If you are comfortable with Frankston North, there is nothing wrong with Aleppo. Note that this house is weatherboard. The icing on the cake would be to buy a brick house on an identical site like this.
 
SOP said:
This thread has now been going for 11 months.

What has the capital growth been like over the last year.

Has Frankston out performed any other Melbourne suburb?
Click to expand...

Hard to tell. Frankston or postcode 3199 is over 20square km in area. This is huge and it houses many different types of neighbourhoods and many different markets within it. Some areas outperform others, some stagnate, some recess. 20sqkm is massive and the average data doesn't really say much. In comparison a suburb like Toorak (which is considered large by Melbourne standards) is 'only' 4square km in size.
 
I noticed there's a lot of odd shaped blocks and houses on angles in Karigal and Frankston Nth area. It would make it hard to keep the existing house and subdivide. Do you thinks there's a market to buy a large block that the house needs to knocked down and sell the subdivision and plans for a couple of units/townhouses.
 
I've been looking at some rough numbers for subdivision in Frankston North (knock down existing property and rebuild two on a 600sqm block) and at current selling prices (not much data here so I assume this is a reasonable price expectation) I can't see how it is possible to buy the existing land, pay subdivision costs, pay building costs of two new houses, pay financing costs and make a profit.

Looking at subdividing in another way, (this property, which already has plans in place, is selling for $300k+. This looks to be a property where you would keep the existing house and build one new one in the back.

Assuming it sells for $300k, with 5% purchase costs and the price to build one new house in the garden, including finance, is $135k (can someone confirm this is reasonable for this area?), total costs, are $300k+$15k+$135k = $450k. Lets assume both properties combined are now worth $500k. Result = Increase equity by $50k.

So buying a brick veneer house at the front with room to subdivide and build an additional at the back is probably the way to go if wanting to develop in the near future, but what about the buy/hold rent at 6% yield and knock down both/build-two-houses as a 5-10 years scenario?
 
Tranquilo said:
Thanks Roy that's makes it a lot clearer for me. How did you go with Aleppo Crescent did you make any offer?
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Glad I could help.

I'm still trying to work out whats the better long term option - older weatherboard for $250k-$260k or a brick veneer for $270k-$280k. Any thoughts?

I haven't made an offer yet, thinking of heading down to Frankston (I'm in Sydney) early January to take a look at whats on the market.
 
roypropertyinv said:
I'm still trying to work out whats the better long term option - older weatherboard for $250k-$260k or a brick veneer for $270k-$280k. Any thoughts?
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Hi Roy,

If you plan to knock down factor in the demo costs of each.
A weatherboard place on stumps could be sold or given away, whereas a b/v on slab house could have huge dumping fees.

If you plan to keep the existing house the considerations will be much different.

Cheers,
Keith
 
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