Purchasing in VIC - Frankston Area #2

[meconium]

http://www.realestate.com.au/property-house-vic-frankston-107097312

this seems pretty cheap,

I do recall this being for sale about 12 months ago, I don't know if it sold or finance fell through or its just been sitting htere for ages

but, 650sqm off the main st though........

assume you could get it for $270k, seems like a real bargain

What am I missing

Edit: I have no affiliation with this property/agent

They are asking $290+ and haven't bothered to answer my calls. Although on a busy road, it is a dual occ site. Probably belongs to some poor granny who doesn't know better - the median is $80,000 over her asking price.
Whoever gets this is in for a bargain.

 

[Ms Jade]

^The reason it is under the median is because it's worth less than a median priced property. By definition 50% of all properties will sell below the median.

 

[Property Meister]

They are asking $290+ and haven't bothered to answer my calls. Although on a busy road, it is a dual occ site. Probably belongs to some poor granny who doesn't know better - the median is $80,000 over her asking price.
Whoever gets this is in for a bargain.

$290k+ is the asking price

if it stays on the market for a while you could easily offer $270k uncoditional

$20k is only 6.8% discount, whereas the median discount is something like 8%

 

[newbyinvestor]

$290k+ is the asking price

if it stays on the market for a while you could easily offer $270k uncoditional

$20k is only 6.8% discount, whereas the median discount is something like 8%

Friendly realestate agent says the place needs renovating however it is tenanted at the moment for $250 a week.

 

[Property Meister]

Friendly realestate agent says the place needs renovating however it is tenanted at the moment for $250 a week.

its still availalbe!!! so something must be up with it????

 

[newbyinvestor]

its still availalbe!!! so something must be up with it????

Meister, have you actually had a look through the place?

 

[Property Meister]

Meister, have you actually had a look through the place?

no i havent

if its been rented for 250 per week its about the average rent for this type of house so itcant be that bad interior

it was for sale about 2 years ago for a long time. I dont know if it sold or was taken off the market or not

 

[meconium]

Probably belongs to someone in the real estate agent's family. They probably don't ever want to sell it and are using it as a means of fishing for buyers that they can direct to their other listings. It happens a bit. Or maybe they are using it as some kind of mechanism to persuade other sellers to sell for less. ie. "look you are asking too much for your home, we've not been able to sell xxx st, frankston for over a year and thats listed at below $300,000."

 

[newbyinvestor]

no i havent

if its been rented for 250 per week its about the average rent for this type of house so itcant be that bad interior

it was for sale about 2 years ago for a long time. I dont know if it sold or was taken off the market or not

I'm different to you Meister.
I look through properties for myself and let my own eyes tell me the story.

 

[Property Meister]

I would probably snap this up if I were ready in terms of timing, but this almost seems too good to be true say if you could pick it up for $295k? or am I missing something?

http://www.hodges.com.au/sale/2479637/2johnstreetfrankston.html

edit: i have nothing to do with the vendor/agent.....i promise

 

[Fifth]

Auction quotes are mostly quite useless.

 

[newbyinvestor]

I would probably snap this up if I were ready in terms of timing, but this almost seems too good to be true say if you could pick it up for $295k? or am I missing something?

http://www.hodges.com.au/sale/2479637/2johnstreetfrankston.html

edit: i have nothing to do with the vendor/agent.....i promise

Heres the story.. The vendor has already refused an offer of $325,000

 

[Property Meister]

thats still not bad in terms of buy

however, you never know what will happen at auction,

the one who offered the $325 might not be there!

 

[Melbournian]

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.

I agree - went to frankston last 1 week everyday for work, Place is a bit deserted not really packed and not really empty, all the shops are like just the same as it was in the early 90s. Besides the major development accept for the main shopping centre, nothing that much to look forward on a weekend. Also - a few hecklers here and there and some very crim looking people lurking around at subway for the 3 times i have been there.

Only oliver hill area properties which is on the clifftop looking down the ocean would be the key attraction. These were my observations (no bias intended)

 

[newbyinvestor]

thats still not bad in terms of buy

however, you never know what will happen at auction,

the one who offered the $325 might not be there!

IMHO Meister good buys don't present themselves to people sitting behind computers.
Good buying comes from looking at properties, attending auctions and making offers/bids until the cards fall your way.
Oh and I gave up fortune telling years ago when I realised I wanted to make things happen instead of being a bystander who predicts what will happen if I don't do anything.

 

[Property Meister]

I agree - went to frankston last 1 week everyday for work, Place is a bit deserted not really packed and not really empty, all the shops are like just the same as it was in the early 90s. Besides the major development accept for the main shopping centre, nothing that much to look forward on a weekend. Also - a few hecklers here and there and some very crim looking people lurking around at subway for the 3 times i have been there.

Only oliver hill area properties which is on the clifftop looking down the ocean would be the key attraction. These were my observations (no bias intended)

yeah i agree

also news like todays murder doesnt help

 

[Peter Parker]

I had a good walk around Franga the other weekend and retail away from the shopping centre is not doing well. And this is despite 10-15 years of almost unbroken economic growth. Estate agents seem to be the dominant retail use on the highway.

Having said that the council is doing a good job with festivals etc outside the cinema and these attract a fair few. And the plaza though is expanding/refurbishing and has healthy numbers of people through the door.

I'm guessing that middle end retail will move inside, leaving the area outside it dead apart from estate agents, pawn shops and fast food (much like Geelong CBD is now). The long-term and too slow road works in Young St outside the tattoo shop aren't helping either as they reduce access from Beach St.

 

[Ms Jade]

On a bit of a segue, if anyone happens to be looking for a top Frankston Sth location this is a bit of a bargain:
Fleetwood Cres

House needs work (looks better in the pics!) but potential 3 unit site (916sq m) in an excellent location.

 

[Property Meister]

On a bit of a segue, if anyone happens to be looking for a top Frankston Sth location this is a bit of a bargain:
Fleetwood Cres

House needs work (looks better in the pics!) but potential 3 unit site (916sq m) in an excellent location.

looks perfectly rentable to me! but I guess the agent has done a good job if it is not that good!

 

[investor2009]

I've just pulled a 4 bedder from REA.com, not because it won't sell but because we no longer want/need o sell it.

The general consensus is 'soft' at the moment.
Mid year should see prices move a little as a local agent ells me, he says it's always soft at the beginning, and end of each year.

Rentals have risen, but also note that rising rents can see property sit for a good month without a tenant, what does that tell you? It means that the market can't quite absorb the increase just yet.