Melbourne Hot Spots - Outer Melbourne

zed_kid said:
Good suburbs have higher price entry points. If you only have 300 - 350k to invest what are your options? You can dream of Brighton but will have to settle for frangers. Maybe because the purchasing power of a regular SSer is higher we can discuss what is a better investment Toorak or South Yarra, but the real world is a little different.
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For me a good suburb is one that will give me good capital gain. I don't usually live where I buy.

I'm aware of the crime and the stigma. Owning a house in Frankston is not something one can boast about. Nevertheless, Frankston appeals to me because it is one of Australia's cheapest beachside suburbs. Gurus like Lomas and Ryder seem to think so too.

I'm a contrarian. I take great pride in buying cheap property. Frankston has been very kind to me over the years, with more to come. I'm still on the lookout to buy if I can find cheapies. These are becoming rarer as developers are moving in.

The doom and gloom brigade say that all beachside suburbs will be underwater someday. But I won't be around if that happens in a few centuries time.
 
Wunderbar said:
A good suburb is where people want to buy, which drives capital gain. Your sentence is a logical fallacy.
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It's all subjective. I wish all investors all the very best. I'm happiest to learn from people who earn more in property than I do. There's never any schadenfreude on my part.
 
meconium said:
Frankston and Seaford are still on Terry Ryder's Hotspotting list. Margaret Lomas, another property author who regularly appears on SKY news also has these suburbs on her watchlist.

If you look around, you can still find rentable old houses on development sized blocks for around $300,000 in Frankston and Seaford. The sort of situation where you can pull down the old house and replace it with two units. Or if you are really lucky, retain the existing house and build up the back.
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I've heard that Frankston council passed a STCA for a block of around 593sq metres (was told it was defintly under 600).

Unless you are a builder, I don't think looking for something SCTA right now is a big deal. People pay a bit more because the land is a STCA. Further in time I think what is STCA land will become smaller in size.

I can't build (heck I probably can't even hammer a nail). I can't see it being viable for me to ever develop a block of land as I'll have to outsorce the whole thing. You may say STCA land will become rarer and rarer such prices of STCA land will increase more than non STCA land. However I think over time STCA land will become smaller, thus land not STCA now will be in the future.

At the end of 08 we got a place in Frankston North. The land isn't STCA, however at the time we felt the place we bought considering everything was the best place available for us as an investment property in the area. It's a solid house, rental return is strong (was 5% when we first bought) and with the location being near shops and the bus stop, it will always be in demand as a rental. The tenant that was in there when we bought is still there despite increasing rent increasing by $15 when we got it (that was a nice surprise as we didn't ask the rent to be increased by $15 but the 1st rental payment we received rent was $15 more than advertised), another $15 a year later and $10 recently.

I do want STCA land when I buy, however as I can't build, I don't dismiss a property because it's not STCA land. The growth rate for the last 2 years for STCA land and non STCA land has been about the same in Frankston North.
 
Wunderbar said:
Nah people here only say Frankston is going to grow because that's all they can afford. There's nothing special about it.
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Apart from the fact it's one of the still (relatively) affordable coastline suburbs that is a part of the 2030 long term plan.
 
which is why it will not grow
It's too far to get to the CBD for work, don't get me wrong mt eliza , mornington great places to live but distance wise - too hard unless you working in clayton or somewhere nearby.
 
Melbournian said:
which is why it will not grow
It's too far to get to the CBD for work, don't get me wrong mt eliza , mornington great places to live but distance wise - too hard unless you working in clayton or somewhere nearby.
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It's about an hour by train. Some people like that trip because it gives them time to read the paper or do some work instead of being stuck in traffic.
 
SupaRex said:
It's about an hour by train. Some people like that trip because it gives them time to read the paper or do some work instead of being stuck in traffic.
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there are some posts from other forum members that are having trouble selling their IPs in frankston even at the lower level end of scale. My workmate had an IP in langwarrin took him nearly 1.5 years to sell it even after reducing the price.

it's more than an hour from frankston not to mention the fights and drunken passengers that often take the ride on the way back. Public transport that further out ain't that safe. Take if from someone who used to catch the train when he went to high school in mt eliza. there were brawls all the time outside the train stations.
 
Wunderbar said:
Nah people here only say Frankston is going to grow because that's all they can afford. There's nothing special about it.
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Clearly you haven't spent enough time visiting Frankston. Best beaches in Melbourne, capital of the Mornington Peninsula, train line, uni, TAFE, large shopping centre, great cycling routes to city along Beach Rd or Bay Trail, great new freeway access (and soon to be bypass), potential marina development.

As I see it, the stigma with the name is the only thing keeping it affordable. Robberies, violence, police call outs etc...have dropped sharply since 2006. Of the times i've spent in Frankston (including eating out) i have never felt unsafe or encountered any antisocial behaviour.

There are outer suburbs of Melbourne i wouldn't visit in a bullet proof vest. Frankston is one I gladly visit in thongs and boardies.
 
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