Purchasing in VIC - Frankston Area #2

I agree there's been some price softening. .

The above comment was written 18 months ago and scared me out of buying a property I was looking at.

It's always interesting to look at things in retrospect. When the investment herd says price are softening, it's often the opposite that is the case.

In the last 18 months, Frankston has done rather well - even when compared to the rest of Melb. I regret not being able to buy more.

Can any of the other Frankston regulars post some links to cheap deals on the market right now? I'm on the lookout for more. Obviously, cheap is good.
 
^ Gee meconium, that's a shame. In March -April last year the softening prices were not just limited to Frankston. If you read my post you'll see that I identified a great potential buy. Wish I could have bought it (it was in Violet St)! Similarly, the post with which I originally agreed was this:

Central Frankston either side of Beach Street, has adequate stock however my recent dealings there gives me the impression of price softening....My gut feeling is that pickings will be very good in the next 6 months, especially for stale stock.
The emphasis being that the hiatus in prices presented an opportunity to buy. I did buy a property in April '09 & as it turns out the market turned quicker than anyone expected - in Frankston as well as the rest of Melbourne.
 
http://www.domain.com.au/Property/For-Sale/Apartment/VIC/Frankston/?adid=2008289060

On the market for ages, $200k probably qualifies as cheap, but due diligence will determine if it's any good

I consider myself a little bit of a know all about frankston houses, but no idea bout units....

whats wrong with this one,

location is tops, doesn't seem to be too close to main roads, freeways, a good location, it does look a bit old, but a touch up could do wonders, what am i missing, im surprised if hasn;t gone!
 
Tried calling them last week. Sold. One of the last of the real cheapies in Frankston. Pity it wasn't a development site but heck, regardless, it was cheap enough.
 
Tried calling them last week. Sold. One of the last of the real cheapies in Frankston. Pity it wasn't a development site but heck, regardless, it was cheap enough.

Thanks for the advice - I knew someone would eventually buy that place in Dell St after months on the market.

It was a semi-detached unit on a small block (my guess is <200m2) in a group of units so was never a development prospect.

An unusual aspect of the street (given the area) was that there was no sign of development or even owners upgrading their homes; most houses in Dell street are poorly presented and there's even a burnt out shell that appears not to have been fixed/pulled down/redeveloped.

In contrast the next street (Birdwood St) is much better presented.

I suspect the reason it took so long to sell was that the property (as well as others in that street) is in a special building overlay, ie prone to overland flooding.

Any redevelopment would require a planning permit and possibly modified floor levels.

I suspect that developers would have found this 'too much trouble' and gone for streets that didn't have these encumberances, and hence have left Dell St to rot.

The property itself would be nice for a single person, but the floor area is small - kitchen and living is very small and it would have been difficult to find a place for the laundry other than the cupboard that had the washing machine connections.

I believe it would have required electrical rewiring as some looked positively dodgy.

The former tenant had extremely poor opinions of the street, property and former owner, and would badmouth all three if asked.

And did someone mention 'asbestos'?

It's the classic problem property, and someone could maybe make a go of it, but given the street was sub-par and the overlay issue I suspect that there are better opportunities elsewhere.
 
Having to sell couple of properties now to get the house build over the line after the CBA stuffed things - don't get me started on this fantastic Bank.

We bought our 2x1 unit in Central Frangers in 2003 for $155k.

Selling currently with asking price of $270k (agent says so, and should get $265k).

So, not a bad result I guess if it sells for near that.

Based on this; Frangers has done ok.
 
I have recently bought a property in Frankston and heres my opinion for what it's worth.
1: Those who jumped into an ex commission house in Frankston NTH 2 or 3 years ago got a bargain however the tidier 11 1/2 square bare bones houses in this area are now heading towards $300,000 and no longer the best value in the area.
2:Karingal is a fraction better location than Frankston NTH and for not much more money than Frankston NTH you can buy a more exciting house on a similar if not bigger block of land. For example I knocked back a double story 4 bedroom place on 600 sqm for $340,000 (The place wasn't a five star hotel).
3: Whistlestop Estate is a smallish estate with approximately 600 homes with many built on low maintenance sized blocks. I'm stuck in my ways and wanted a house on atleast 600 sqm in a decent area and couldn't come up with the goods in this estate.
4: Marylands Estate is central and I wouldn't have hesitated to buy here if the right house popped up for the right money.
5: Lakewood Estate is atleast on par with Whistlestop and many of the houses sit on decent sized blocks, consequently I invested here.
Thing is I bought an immaculate 3 bedder on 650sqm for similar money to a place on 520 sqm in Whistlestop.
Generally the market has cooled and over the last month agents have been chasing me to have a look through their latest listings. IMHO it's a good time to buy and I know atleast one vendor was prepared to listen to an offer in the lower part of the advertised price bracket.
 
We bought our 2x1 unit in Central Frangers in 2003 for $155k. Selling currently with asking price of $270k (agent says so, and should get $265k).So, not a bad result I guess if it sells for near that.
Based on this; Frangers has done ok.

Back in 2003, had you bought an old house in North Frankston you could have gotten something decent for around $110,000, possibly less if you shopped around. Perhaps an old brick 3 br house on a dual occ site. Today it'd sell for around $300,000 if it was over 600sqm and had side access. That's a gain of almost 300%! Not bad for a so-called low socioeconomic area.

The moral of the story: Land size matters. Those who invest in Frankston would do well to buy houses on dual occ sites rather than units or smaller homes.

Some bargains to be seen in Karingal these days. Again, it is best to buy something on a dual occ site ie. over 600sqm. These can easily be bought for around $350,000 or less.
 
Wow, I thought Frankston would get it's share of growth eventually, after Seaford did so well in the last few years, but I didn't expect this....

This one sold before auction for $465,000
http://www.realestate.com.au/property-house-vic-frankston-107074802

I was thinking 350k-380k.

Any other Frankston/Seaford stories? (As opposed to the supposed million dollar median price on re.com)

John.

im sorry , but that is just a stupid price,

you can still pick up 650sqm blocks with average houses on them near by for asking price $350-$380k. unless im missing something about this one, its stupidly overpriced,

my opinion is that you are probably going to see price sofetening at least until june-july this year, especially once the interest rate rises kick in, i believe there is supposed to be 3 this year
 
im sorry , but that is just a stupid price

Someone paid a full price for an immaculate home, which is nevertheless on a dual-occ site and still priced well below the Melbourne median.

you can still pick up 650sqm blocks with average houses on them near by for asking price $350-$380k

This much is true. Many, many bargains out there. Personally I prefer cheap, average homes to expensive immaculate houses. I would not have paid the asking price for this home. But no sour grapes from me - I think this sale is a sign of better things to come for local owners.

once the interest rate rises kick in, i believe there is supposed to be 3 this year

If you really knew where interest rates were going, you'd be living in the French Riviera. :D Get used to the fact that Frankston, one of Australia's cheapest beachside suburbs, is still unbelievably mispriced compared to the rest of Melbourne.
 
meconium, as a owner in Frankston South, I agree partially with your sentiments, however, I think what the area has is potential to be a better area but I think it is priced accurately.

Looking at actual income in the area SQM's results for at least 91, 96, 01 & 06, see family income falling behind Victoria's average.

You can also view the types of retail stores in the Frankston CBD. There are no high end restaurants, no brand retail stores, the foreshore area is dated. The biggest retail presence in the centre of Franskton are the REA offices, which I have never understood!

For example, the corner of the Davey Street and Nepean Highway, one of the highest points in the CBD area, fantastic view over the bay and a perfect place, for a high end retail or commercial operation. Its a strip joint! :(

There needs to be a catalyst for demographic change in the area to give it the next push. The proposed harbour would arguably have been this, but as time progresses, I have my doubts if it will ever be viable and get off the ground (or water!)
 
There needs to be a catalyst for demographic change in the area to give it the next push. The proposed harbour would arguably have been this, but as time progresses, I have my doubts if it will ever be viable and get off the ground (or water!)

I hear what you say and I certainly don't want to be seen as some kind of starry eyed dreamer.

But consider this: the catalysts for change were not in North Frankston back in 2003 when reasonably solid houses could be bought for barely $110,000. These same houses are now worth close to $300,000. Don't misunderstand me. I am not saying trees are going to grow into the sky and that prices are going to skyrocket from here.

What I am saying is this: the area is mispriced; there's plenty of room for price growth given the dual occ status of most blocks in the area. Again, I'm not saying Frankston is the French Riviera...I'm saying its cheap. All the bad news is fully priced in - it won't take much in the way of good news to stimulate more interest in the area.

I suspect the Marina will eventually happen. The local government has invested a massive amount of effort and money to bring it to fruition and, eventually, the numbers will add up and it will be built. That would certainly be a huge positive for the area.
 
meconium, as a owner in Frankston South, I agree partially with your sentiments, however, I think what the area has is potential to be a better area but I think it is priced accurately.

Looking at actual income in the area SQM's results for at least 91, 96, 01 & 06, see family income falling behind Victoria's average.

You can also view the types of retail stores in the Frankston CBD. There are no high end restaurants, no brand retail stores, the foreshore area is dated. The biggest retail presence in the centre of Franskton are the REA offices, which I have never understood!

For example, the corner of the Davey Street and Nepean Highway, one of the highest points in the CBD area, fantastic view over the bay and a perfect place, for a high end retail or commercial operation. Its a strip joint! :(

There needs to be a catalyst for demographic change in the area to give it the next push. The proposed harbour would arguably have been this, but as time progresses, I have my doubts if it will ever be viable and get off the ground (or water!)

Gee Buzz,
sounds like you should sell the place in Frankston STH to me for a song and put the money into a worthwhile investment some where else.
 
Gee Buzz,
sounds like you should sell the place in Frankston STH to me for a song and put the money into a worthwhile investment some where else.

If I could sell it for a song, I would.

I have a much higher benchmark of what I expect my investments to return to me than I did 5 years ago, even 12 months ago. I critically evaluate my decisions to purchase/maintain properties and don't see any inherent issue in critiquing a suburb or region that I have or still am invested in.

Cognitive dissonance is a behaviour that should be avoided at all costs.

As for my IP, its served me well and don't see myself selling in the short term. Demographic change is not an overnight process, however I would as a ratepayer, would like to see a more agressive approach to attract business to the area. The marina is one example.

Compare the CBD streetscape to Glenferrie Road Hawthorn, Burke Rd Camberwell, Toorak/Chapel Street, High St Armadale, Bridge Rd Richmond, Lygon St Carlton. They of course will never be those areas, but my point is that these are a lagging indicator of the gentrification of an area. I know there are no plans for higher end retail or commercial operations to move into Frankston.

Yes, there are large and well entrenched non-private employers in the area, ie Frankston Hospital, Monash University (Peninsula Campus) and yes a revamp of the hospital is just about complete/completed (?), but are the incomes from these jobs going to substantially increase over and above the average?
 
You can also view the types of retail stores in the Frankston CBD. There are no high end restaurants, no brand retail stores, the foreshore area is dated. The biggest retail presence in the centre of Franskton are the REA offices, which I have never understood!

For example, the corner of the Davey Street and Nepean Highway, one of the highest points in the CBD area, fantastic view over the bay and a perfect place, for a high end retail or commercial operation. Its a strip joint! :(

This is quite true - Frankston CBD has gone downhill even in the last 2 years. Spotlight and Dimmeys have left or greatly downsized.

Frankston-boosters on this forum said the departure of these downmarket stores would clear room for something else more in keeping with the supposed gentrification of Frankston.

It didn't happen.

Instead Frankston's vacancy has spread to smaller shops - often with signs saying 'moved to Seaford or Dandenong etc'.

Whether retailers choose to trade Sundays is a reliable indicator of a shopping strip's vitality. In Frankston CBD they often don't.

Having said that I don't think there's necessarily correlation between the health of an area's shopping strip and its surrounding housing market. Eg Glenhuntly Rd Glenhuntly is also a poorly-maintained slum of scrooge landlords or their business tenants but surrounding houses and units continue to fetch high prices.
 
If I could sell it for a song, I would.

Buzz I was only joking.

I have a much higher benchmark of what I expect my investments to return to me than I did 5 years ago, even 12 months ago. I critically evaluate my decisions to purchase/maintain properties and don't see any inherent issue in critiquing a suburb or region that I have or still am invested in.

Buzz I was only joking

Cognitive dissonance is a behaviour that should be avoided at all costs.

As for my IP, its served me well and don't see myself selling in the short term. Demographic change is not an overnight process, however I would as a ratepayer, would like to see a more agressive approach to attract business to the area. The marina is one example.

Fair enough.

Compare the CBD streetscape to Glenferrie Road Hawthorn, Burke Rd Camberwell, Toorak/Chapel Street, High St Armadale, Bridge Rd Richmond, Lygon St Carlton. They of course will never be those areas, but my point is that these are a lagging indicator of the gentrification of an area. I know there are no plans for higher end retail or commercial operations to move into Frankston.
Uh Buzz, people such as Nathan Birch seem to have done just fine investing in bread and butter property in areas that don't have high end retail stores and restaurants! Matter of fact I haven't done too badly myself.

Yes, there are large and well entrenched non-private employers in the area, ie Frankston Hospital, Monash University (Peninsula Campus) and yes a revamp of the hospital is just about complete/completed (?), but are the incomes from these jobs going to substantially increase over and above the average?
Buzz you could over analyse every suburb and find things wrong with it. IMO it comes down to are the reasons to invest in an area more convincing than the reasons not to invest.
I think Frankston will continue to return capital growth.
 
Buzz you could over analyse every suburb and find things wrong with it. IMO it comes down to are the reasons to invest in an area more convincing than the reasons not to invest.
I think Frankston will continue to return capital growth.

Well, if the recent record price at http://www.realestate.com.au/propert...ston-107074802 is any indication, there are people out there who are prepared to pay good money for a place in Frankston.

Nobody says Frankston is the next Cannes. That said, it is indisputably Australia's cheapest beachside suburb with redevelopment opportunities for most homes that are over 600sq meters in size.


Spotlight and Dimmeys have left or greatly downsized.
Frankston-boosters on this forum said the departure of these downmarket stores would clear room for something else more in

I've never seen these chain stores in St Tropez or Cannes. Nor in Vaucluse or Peppermint Grove. Does it mean that these places are headed downhill? Let's not confuse chain stores with a suburb that has been badly mispriced.
 
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