Making A Relatively Safe 20% in Low-End Frankston?

strongy1986 said:
Was in frankston today and I had literally Walked 3 metres from my car when a man stopped me to ask where centre link was
Click to expand...

Perhaps he's a visiting bogan? A genuine self-respecting Frankston feral would know exactly where Centrelink is located, for sure!

The more negative news, the better, as far as I am concerned. When I bought into some of Perth's more feral suburbs (including places like Balga, Beckenham, Westminister, Bentley, Victoria Park, Rockingham, to name just a few), it was really unnerving to see people like that walking the streets.

Back then, I bought into Perth because it was unbelievably cheap. Almost everything I bought was on a development sized block. One gem I picked up in 1991 for $48,000 recently sold for $1.2m - pity I sold it for less than half of that during the GFC. Back when I bought it, it was tenanted by refugees from Cambodia; most of my colleagues thought I was a twit for buying such a dump. Looking back, I wish I had never sold it for so little.

Ah, the red wine has made me nostalgic.
 
one world said:
The more negative news, the better, as far as I am concerned. When I bought into some of Perth's more feral suburbs (including places like Balga, Beckenham, Westminister, Bentley, Victoria Park, Rockingham, to name just a few), it was really unnerving to see people like that walking the streets.

Back then, I bought into Perth because it was unbelievably cheap. Almost everything I bought was on a development sized block. One gem I picked up in 1991 for $48,000 recently sold for $1.2m - pity I sold it for less than half of that during the GFC. Back when I bought it, it was tenanted by refugees from Cambodia; most of my colleagues thought I was a twit for buying such a dump. Looking back, I wish I had never sold it for so little.

Ah, the red wine has made me nostalgic.
Click to expand...





Thats a solid backhand 'return' down the line. :D
 
'With a good town planner, almost anything is possible'

Have you identified a town planner you plan to use in Frankston?
 
one world said:
Let's look at the negatives first, before becoming starry eyed:

1. Although it has plenty of infrastructure and is a rezoned beachside suburb with development opportunities, Frankston is not a high-status location. It has its fair share of social problems. Thankfully, the bogans and ferals seem to be moving inland, driven away by increasing rents.

2. Frankston is one hour from Melbourne by train - not great for commuters but fine if you work locally, as most residents do. The new highways and roads don't make much of a difference, in my opinion.

3. Crime in Frankston is around that of inner-city Melbourne. There are plenty of colourful stories about how ambulance workers in Frankston need police escorts etc. These, in my opinion, are exaggerated.

4. Paying too much for any property in Frankston, regardless of redevelopable opportunities, is not wise. Many people, including a few on this forum, have made this mistake. Regardless of what agents may say, the rewards are to be had in choosing cheap old houses on large blocks. Forget the kitchens and bathrooms - local yields are rarely more than 4% anyway.


Why do I think Frankston is such good value?

Basically there is only one reason: because the low-end of Frankston has become incredibly mispriced to the point that its pretty hard not to make a capital gain.

The median is around $360,000. However, you can easily get an old house on a dual or triple occ development site for as little as $300,000. The sort of property where you can retain the old house and build in the rear in a few years, when you are ready.

My personal estimation: if you buy in the lowest decile of house prices, you will see IMHO 20% capital gain in the next 12-18 months if you buy carefully.. Pay too much (as many did in the last boom) and you won't see that sort of gain. Again, be warned, there is no point paying more than the LQ median as there are plenty of redevelopable sites within this parameter.

Again, Frankston is not for everybody. In my opinion, the positives exceed the negatives. If one buys intelligently, making 20% in the next year is like shooting fish in a barrel.

Disclosure: I recently sold my WA portfolio, which I acquired in the 1990s, and put the bulk of my net worth into Frankston.
Click to expand...



What are your thoughts of Apartments/Unitsn rather than houses in the area?
Seems 2 Bed Apartments range anwhere from High 100s to Mid 200s
 
melbkid said:
What are your thoughts of Apartments/Unitsn rather than houses in the area? Seems 2 Bed Apartments range anwhere from High 100s to Mid 200s
Click to expand...

You'd get a decent yield for sure. Capital gain may be less though.

My own situation is that I am a capital gains guy. I believe cheap houses in the late two hundreds are outstanding bargains with potential for huge gain. I am expecting 50% CG (over three years) on some of the low-end gems I've managed to pick up on the cheap. Remember, these are all development sites and were bought at fire-sale prices. The returns won't be as great if one buys fully-priced pristine houses with beautiful kitchens and swimming pools.

The more bad news about Frankston the better - scares people away.
 
Hi one world

I spent 19 years working in Mt Druitt and have invested in Logan so I know what those areas are like . Is Frankston much the same in terms of demographics in its grotty areas ? The areas your looking far form the water , geographically which areas are we talking about in Frankston?

I went through high school in melbourne and spent most of my weekends sailing ( including in winter ...) and I remember sailing at the ice breaker regatta in Frankston and make in those days the beach was a nice area .

What's the beach area like ?

Dee why on Sydney's northern beaches used to be a fairly rough area , but has moved more upmarket nowadays with the redevelopment of the beach being important in this process .

How proactive are the local council down there ?

Cliff
 
Also has anyone else on the forum invested in Frankston other than One World,

Would also like to hear someone elses experiencee.....
 
see_change said:
Hi one world

I spent 19 years working in Mt Druitt and have invested in Logan so I know what those areas are like . Is Frankston much the same in terms of demographics in its grotty areas ? The areas your looking far form the water , geographically which areas are we talking about in Frankston?

I went through high school in melbourne and spent most of my weekends sailing ( including in winter ...) and I remember sailing at the ice breaker regatta in Frankston and make in those days the beach was a nice area .

What's the beach area like ?

Dee why on Sydney's northern beaches used to be a fairly rough area , but has moved more upmarket nowadays with the redevelopment of the beach being important in this process .

How proactive are the local council down there ?

Cliff
Click to expand...

It's still nice. However, I was doing the sabot nationals there about 15 years ago and a lady stepped on a syringe.
Maybe they clean up better these days but you can't get them all.

What did you sail see change

Yes unfortunately the areas he is looking at are a but further back. I would jump all over it if you could get one of these sites about a k or less back

Happy to be corrected though one world
 
'I went through high school in melbourne and spent most of my weekends sailing ( including in winter ...) and I remember sailing at the ice breaker regatta in Frankston and make in those days the beach was a nice area .

What's the beach area like ? '

I bought there and was delighted with the good price, turned out to be a development block, and passed it on to a developer.

I spent an age locating a competent Property manager, apart from that, I spent a summer 2 streets from the beach fixing it up, with my Darling!
How good was that?
Fabulous, there are some wonderful areas, and whenI bought as part of my DD I went to the police, and asked about the reputation, they said 'you are fine', its just a particular group who live in whatever street, don't have anything to do with them.
The paid road brings you to the airport in an hour twenty, as part of the deal, all the footpaths and curbs had to be re- done, and they were landscaped as well.
The beaches are clean and you can often get the whole beach for yourself in Seaford! Tennis club you can always get a game in.. Seafords designer Surf Club house..look fab, Frankston has a University, Hospitals, and shopping, Ok it isn't Paris or Collins Street, but you wouldnt want to get your designer clothes all sandy.. Bikini for me is ok:D
There is a farmers market, and for culture vultures the http://www.mcclellandgallery.com/
I would buy there again at the blink of an eye were my circumstances open to it!
 
Last edited:
We had a lovely New Years Eve on the beach.. with a private bottle of French Champagne,

NO pics only happy memories!!!

Make your own memorable occasions please!:eek:

Cheers
Seaford Sunshine
 
Here's the problem. Why make a safe 20% in Frankston with difficult tenants, when you can make a safe 40% in Carlton with thousands of people fighting to rent your place?
 
turn it up

woahhhhhhh difficult tenants!?!?!?!? please...... I highly doubt that. haven't had any probs with my tenants.
 
see_change said:
Started of sailing Mirrors and then got one of the first Lasers to turn up in Victoria , sail number 10640 .

Mainly sailed out of Black Rock and Albert Park Sailing Club . We lived in Sandy .

Cliff
Click to expand...

My brother sailed out of Port Melbourne(Int. Cadets) then Black Rock(Lightweight Sharpies) during the 70's and 80's.
 
Started with Lasers out of Hobsons bay.. Brother and I capsized into the path of a tanker...
never been so scared in my life,
but continued sailing Sydney Harbour professionally and the west coast of France..


Wonderful experience!:p

my tenants forgot to pay. I went to Frankston Courthouse, got an order, end of story.
Before any of that I bought well....... had a buffer.
Spent the lazy Summer painting, pulling up carpets and polishing floors, (see previous post) rented to professional people, problem over !
good presentation always helps
cheers
SeafordSunshine
 
You must log in or register to reply here.

Similar threads

E
If you had a spare $300k....
Replies
15
Views
3K
jpcashflow
J
Z
Goal is to live off rent in the future how?
Replies
18
Views
4K
srini
S
A
Help me reach my goal!!
Replies
12
Views
3K
Deltaberry
D
jim_88
First time home buyer - should I go it alone or take up this opportunity?
2
Replies
20
Views
5K
DCI
D
MelbPropMeeting
Melb Prop Meeting Tues 20 Jan - Secrets to Effective Area Analysis & Prop Selection
Replies
0
Views
1K
MelbPropMeeting
MelbPropMeeting
Back
Top