Mount Eliza
- Thread starter pricey
- Start date
I think South Frankston which is on the other side of Humphries rd from Mt. Eliza is far better value than the 'postcode'. I always struggled to see what the attraction was with M.E other than the large plots of land. I must admit though; it is a very nice 'leafy' suburb.
However, I have a feeling that South Franga may have caught up a bit to Mt. Eliza in price since I was there 2 years ago.
The 'postcode' will always attract people for the snob value if nothing else, so the cap growth should be slow and steady for a long time to come.
However, I have a feeling that South Franga may have caught up a bit to Mt. Eliza in price since I was there 2 years ago.
The 'postcode' will always attract people for the snob value if nothing else, so the cap growth should be slow and steady for a long time to come.
I agree that both Frankston and Mount Eliza are great value for money and have strong capital growth potential if you buy in the right areas. For example, for investment purposes in Mount Eliza I suggest buying as close to the village shopping centre as possible because I believe there is and will continue to be strong demand from baby boomers looking to downsize from their 2/3 acre high maintenance blocks into more conventional 700 sqm or 300 sqm townhouse sized lots.
You're dad should just enjoy it, crack a bottle of the champers and share a glass with you. Worrying about investment return 1) after it's already been bought & 2) on a PPOR is to miss the point.
FWIW, it's a great area.
cheers
Mt Eliza is an untapped goldmine, the returns maybe not that great but CG will exceed other parts of frankston in the coming years. Anything close to the village is a good investment depending on your circumstances, probably better for your PPOR as you might get a big CGT when you sell and not the best rental return. The ranelagh estate has single dwelling covenants on it, so any development sites near but outside this area will continue to attract a premium. Mt Eliza does not have the lower class of people that you have to deal with in frankston (note I live in frankston) and you can do your shopping there or at mornington. My father bought some land a while ago there and more than tripled his money in about 8 years. If he still had it he would have quadrupled in about 10 years. I have previously lived in south frankston for 15+ years and would take Mt Eliza anyday.
Why do you guys think this area has the snobby factor?
Pricey:
I think Mount Eliza is currently undergoing a transformation to return it to the heyday of the late 70's early 80's bringing it back to an exclusive suburb. If you drive down the streets in you will see many major renos being undertaken. You do not have the high level of housing commision houses scattered throughout the suburbs like frankston has.
Mount Eliza remained stagnant for many years as the baby boomers built there modest dream homes, then let them sit there, not undertaking any renewel work. People are only realizing now the value for money available. It is nothing for some to spend 450K on a old house with 700 sqm block to then knock down the house and rebuild.
With the drug problems in frankston, traffic hassles on a saturday morning and increasing multi unit developments, I believe you will see a shift of wealthier frankston south residents towards mount eliza.
I grew up in South Frankston and beleive its an excellent place to live, however the housing commision owns probably about 5-10% of it, especially near the high school. The bought the place next door to where I grew up.
I now live in central frankston (the best part) but it is full of freaks and wierdos, not many owner occupiers either.
For return on investment (cashflow) id pick frankston or frankston south south. For future CG and somewhere to live id pick Mt Eliza
Mount Eliza remained stagnant for many years as the baby boomers built there modest dream homes, then let them sit there, not undertaking any renewel work. People are only realizing now the value for money available. It is nothing for some to spend 450K on a old house with 700 sqm block to then knock down the house and rebuild.
With the drug problems in frankston, traffic hassles on a saturday morning and increasing multi unit developments, I believe you will see a shift of wealthier frankston south residents towards mount eliza.
I grew up in South Frankston and beleive its an excellent place to live, however the housing commision owns probably about 5-10% of it, especially near the high school. The bought the place next door to where I grew up.
I now live in central frankston (the best part) but it is full of freaks and wierdos, not many owner occupiers either.
For return on investment (cashflow) id pick frankston or frankston south south. For future CG and somewhere to live id pick Mt Eliza
hello,
Mt eliza went bang in the late eighties, lot of execs living their and they just walked away from their homes, banks took over
I grew up in South Frankston at the time (22 yrs), you are right about the value, especially the area around humphries rd, massive blocks and old style mansions
thankyou
myla
Mt eliza went bang in the late eighties, lot of execs living their and they just walked away from their homes, banks took over
I grew up in South Frankston at the time (22 yrs), you are right about the value, especially the area around humphries rd, massive blocks and old style mansions
thankyou
myla
Hi Gussman,
Love your generaised-sweeping-statements-work !
Looks like you need to buy the Aug API edition as well as look at actual numbers before pedalling the much-hyped myth about wealthy areas delivering better growth than non-wealthy areas.
I checked Mt Eliza's long term last 15 years growth history and it increased at the rate of 9.6% each year.
Frankston South increased at the rate of 11.8% each year, so there goes your Mt Eliza having better chances of CG theory.
Then I looked at last 12 months, 3 years and 5 years data fro Mt Eliza and Frankston, Frankston South and here are the results:
MT Eliza went from $360k in June 02 to $550k in June 07, representing an increase of 65%.
Frankston went from $180k in June 02 to $270k in June 07, representing an increase of 66% during the same period...!
For 3 years to-date,
Mt Eliza went from $521 in June 04 to $550 in June 07 (REIV figures).. you work the CG during the last 3 years
In thew last 18 months, Frankston went from a lowly $230k to $270k, whereas Mt Eliza went from $500k to $550k..! not even remotely close to Frankston or Frankston South.
Frankston North (the lowliest), has had the best increase in the last 2 years.
It has been discussed to death, that "wealthy expensive suburbs" have no edge over not-that-welathy-suburbs in achieving capital growth, infact mostly the reverse is true (as demonstrated in the report in Aug API highlighting the figures comprehensively).
http://www.somersoft.com/forums/showthread.php?t=34338
If anything, based on the activity levels in Frank, Frank Sth and Frank Nth for the last 6 months, there is no way that Mt Eliza even remotely comes close matching the activity level to Frankston. Have a look at realestate webiste and post back the results.
If demand is a key determinant of the increase in price growth, then there are 99% chances of Frank delivering higher CG than MT Eliza which is appearing very quite/ almost sleepy town compared to Frankston in activity levels.
Hope you get the drift.
All the best
Harris
very interesting, you also need to consider that frankston has much more activity because of the lower pricing and larger area of real estate.
some more generealisations
drug problem in an area resulting in no CG prospects..!
since when has the drug problems (read Williamstown, Port melbourne, Footscray, Richmond, Moorabbin) stopped some really good suburbs realising their full potential... The increase in price points coupled with high end developments, improvement in general infrastructure and local facilities generates a trend that sees the perceptioncs change as they increase in value..
Traffic hassles on a Saturday morning causing an area not to appreciate....? Now thats the first..!
Read South Yarra, Richmond, Hawthorn, Kew, Brighton, Prahran ... all these areas have more traffic during Sat morning due to cafe, shopping appeal than any other areas, yet most of these suburbs represent best of the best that Melb has to offer on liveabilility index..! Now that hasn't stopped "wealthier" people to shift to other areas because there is more traffic on sat morning..??
Increasing multi unit developments causing retardation of CG..?
How about Toorak, Malvern, South Yarra, Armadale, Docklands ... if anything, it generates buzz in the area and results generally in increasing values.
Harris
I was referring to activity levels as a proportion to available prop.
Out of 200 prop listed in Frankston on realestate.com.au , over 80 are sold whereas the number is 29 sold for 162 available prop in Mt Eliza.
That translates to about 17% of the available prop as sold for Mt Eliza compared to over 40% for Frankston.
Looking at North Frankston and the ratio goes up to 60% of the prop sold.
Harris
Hi Harris,
I'm sure it's been mentioned somewhere before (I think even by yourself?), but can you explain the formulas you use to work out activity levels using realestate.com.au? Is it the Under contract/offer vs the houses for sale? And why do you believe this is a good indicator?
Thanks in advance
Banked
I'm sure it's been mentioned somewhere before (I think even by yourself?), but can you explain the formulas you use to work out activity levels using realestate.com.au? Is it the Under contract/offer vs the houses for sale? And why do you believe this is a good indicator?
Thanks in advance
Banked
Hi Banked,
I had the honour of un-earthing the forumla of realestate.com.au..!
Basically, when doing research in Frankston, every agent I spoke to told me that its been the busiest time ever for them or busiest in the last 10 years etc etc.
I realised that the best way to determine the activity level is to use a common benchmark and I could not think of anything else more consistent or effective than a real estate search engine and hence decided on using the largest search engine (realestate.com.au) by a country mile. I am happy to default to another method which would use a common and consistent platform to benchmark the activity levels across suburbs, if there is any..!
The criteria I use is that I would select a suburb and then run a search for available prop and then calculate the number of prop sold and compute the results to show the proportion of listed vs proportion of sold prop.
Doing it on Frankston and comparing the results with almost all key growth areas nationally confirmed that Frankston topped the prop sold vs prop lsited benchmark nationally.. Only Elizabeth, SA comes close to such activity levels.
Harris
I never proclaimed to be a statitician, these are my opinions only. I hate bagging frankston, but you are making me do it to defend my statements.
You can use your stats approach to investing and I admire that and that your call.
Harris there are stats and local knowledge. I dont think stats always look at every angle. An example of this is a house a friend of mine bought in MT Eliza 2 years ago for 315 k. They just sold the block next door for 450k no agents involved, a builder bought it by approaching the owner, this aint shown on realestate.com. It has a single dwelling covenant on it so is not a unit site. If you look at frankston, prices have nearly caught mt eliza, mornington prices are more expensive. Mt Eliza being in the middle will rise.
Most of my money is tied in frankston, with a part interest in Frankston North and a part interest in Mt Eliza. People will pay 4 mil for a house in mount Eliza. It will be a long time before people pay that in frankston.
Harris you might do the stats and drive down here on weekend looking at properties. I have lived here (frankston) all my life. Through collegues I have access to PRISM (what valuers use to determine what a property has sold for) so can often access the true result a property has sold for) for free. In any event I would rather live in Mount Eliza and if I can find a property for a good price I will buy one, than live in franga where I live now.
You can buy a mt eliza property for 400k spend 100K on reno and sell for close to 700k.
3 br units can fetch 550+K. You will struggle to get that in denbigh street.
Look each to there own. If you folow stats you should go buy something in tyabb.
Most are my statements are relayed from people that live here and people that are on the move, something you know little about. Without saying what I do for a living I have very good knowledge of what people are doing a long time before any stats will show this. I also know of quite a few people that are selling up in frankston south and moving to mount eliza.
I also hate to say this on a public internet forum, but frankston is getting worse in terms of the scumbags, again my opinions but something stats dont show, stats say people are feeling safer. Harris why dont you come and live in one of your properties in frankston for a while, I sure you would soon move back to where your from.
I also deal with some of the largest property developers around this area, and I can tell you they do not spend that much time researching stats as they already know the area and what things are worth and what they are going to do.
By the way the retardation issue CG etc. Take a look at all new the town houses in frankston south at the moment not selling. My parents are about to do one themselves and if they had to borrow the money from a bankl the numbers wouldnt stack up. Once frankston south is full of town houses people will want to move to an area thats not over developed. Again this is what i am hearing from people.
Harris there is another one in dell road frankston through hocking stuart you should check it out.
cheers
You can use your stats approach to investing and I admire that and that your call.
Harris there are stats and local knowledge. I dont think stats always look at every angle. An example of this is a house a friend of mine bought in MT Eliza 2 years ago for 315 k. They just sold the block next door for 450k no agents involved, a builder bought it by approaching the owner, this aint shown on realestate.com. It has a single dwelling covenant on it so is not a unit site. If you look at frankston, prices have nearly caught mt eliza, mornington prices are more expensive. Mt Eliza being in the middle will rise.
Most of my money is tied in frankston, with a part interest in Frankston North and a part interest in Mt Eliza. People will pay 4 mil for a house in mount Eliza. It will be a long time before people pay that in frankston.
Harris you might do the stats and drive down here on weekend looking at properties. I have lived here (frankston) all my life. Through collegues I have access to PRISM (what valuers use to determine what a property has sold for) so can often access the true result a property has sold for) for free. In any event I would rather live in Mount Eliza and if I can find a property for a good price I will buy one, than live in franga where I live now.
You can buy a mt eliza property for 400k spend 100K on reno and sell for close to 700k.
3 br units can fetch 550+K. You will struggle to get that in denbigh street.
Look each to there own. If you folow stats you should go buy something in tyabb.
Most are my statements are relayed from people that live here and people that are on the move, something you know little about. Without saying what I do for a living I have very good knowledge of what people are doing a long time before any stats will show this. I also know of quite a few people that are selling up in frankston south and moving to mount eliza.
I also hate to say this on a public internet forum, but frankston is getting worse in terms of the scumbags, again my opinions but something stats dont show, stats say people are feeling safer. Harris why dont you come and live in one of your properties in frankston for a while, I sure you would soon move back to where your from.
I also deal with some of the largest property developers around this area, and I can tell you they do not spend that much time researching stats as they already know the area and what things are worth and what they are going to do.
By the way the retardation issue CG etc. Take a look at all new the town houses in frankston south at the moment not selling. My parents are about to do one themselves and if they had to borrow the money from a bankl the numbers wouldnt stack up. Once frankston south is full of town houses people will want to move to an area thats not over developed. Again this is what i am hearing from people.
Harris there is another one in dell road frankston through hocking stuart you should check it out.
cheers
I dont understand why anyone would make you bag an area..
In order to seperate wheat from chaff, you have to rely on somethiong.. and if REIV figures show that in the last 15 years MT Eliza grew at a slower rate than Frankston South, then I dont know what else to do to prove the point that Frankston South had better growth than Mt Eliza..
How about my numbers in Frank Sth.. Paid $420k for 32 Denbigh St in march and had an offer for $490k in May on the same block and last one sold for $550k - all land value, inside 5 months..! And all this info on public profile, not something that someone want something from someone else privately..!
I bought 35 Royle St couple of months ago for $250k (with a house and unit) on 680 sqm... 21 Royle St is on the market now for over $360k with 630sqm..!
I am getting far better rental yield than what 21 Royle would ever get.. You work out the numbers.
I would live in Mt Eliza too anyday over Frankston simply because I can afford it. What relation does it have with the growth potential of an area popular with a different demographic.. Frankston is coming off a low base and is increasing at much faster rate than any other non-auction dominated suburb currently.
Too subjective...! that could happen or not happen anywhere
3 bed units in Denbigh selling for $470k. Denbigh becomes Muir where 3 bed townhousese selling for $560k+
Its not following stats...! Its doing intelligent market research. You cant beat the fact that demand creates pressure on availability of stock and price points. Frankston through my research (in detail in other thread) is highest national activity suburb and hence it is logically going to go up in price faster than Mt Eliza where such activity levels are simply not there.. I think its pretty easy to understand..
Why do I need to rely on relayed statements from people living there..? I do my own research and talk to anyone and everyone that matters in Frankston. From council staff to every agent ( I mean every agent out of 100+ agents there are).. I speak to key developers, builders.. I have myself done some selective door knocking on saturdays for the prop I am interested in, a number of local businesses etc etc.
I post real numbers of the actual properties with url links to that property and the property address and compare the sales results with other similar prop selling in same streets with the sale price etc etc. Its not hearsay, wishy washy stuff.
This statement takes the cake...by a country mile..!
Harris
