Purchasing in VIC - Frankston Area #2

meconium said:
Frankston has risen off a very low base and remains one of Australia's cheapest beachside city suburbs. I'm not saying it's heaven on earth but it's hard to go wrong in Frankston
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Just so everyone knows, the latest REIV median figure for Frankston was just released and is at $360,500. Here's the link if you want to check in the future: http://data1.reiv.com.au/trendchart/

Frankston South had a massive gain lately and it may well be Frankston's turn to move sharply upwards. The momentum is certainly there. Owners seem to be hanging on to their homes tightly, which accounts for the median rising.

I guess investors and developers wanting dual occs properties that can be developed down the track are probably having to pay premiums well above the median.
 
Property Meister said:
did anyone go to this auction

http://www.homehound.com.au/56+stanley+street+frankston+vic+3199/12259493/ it sold yesterday for $251k!!!! I didn't even know of this auction, however, i believe that is a really low price, sure it needs a lot of work, but I would have expected anything up to $295.is this a sign of a weakening frankston market. unless im missing something as to why it went so cheap!
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Probably a bank auction or something of the sort. In any case, the firm handling the sale, Dawes 1st National, has a long history of underpricing properties, to the detriment of owners. Barely a year ago, one of their staff offered to buy one of my houses for $200k when it was worth 50% more. Perhaps this is yet another example of an inside job.

Back to the property in question: on the open market, this house should have fetched around $330k, given that the Frankston median is now $360,500. Someone's gotten a great deal! The seller will rue the day he set foot in the office of the friendly agent.
 
prudent property manager

I bought a 681sq block with a cute 2br weather board house on it in 2006 and me it was hard work!
The block has nearly doubled in value which is wonderful, but does anyone know a Property manager with prudence, or integrity they could recommend in Frankston or Seaford. ?
Cheers,
Sunshine

I guess investors and developers wanting dual occs properties that can be developed down the track are probably having to pay premiums well above the median.[/QUOTE]
 
property manager in Frankston

I just got an IP in central Frankston and so far I've been impressed with the service I got from Branko Radov from Milne. Early days, though... On another note, it's interesting to watch that property in James st going for 427 grand. I seem to recall similar properties going for well under 400k five months ago.
 
Hi there, I read the forums a lot and would value your opinions on a property that has come on the market in frankston.

It is in whats I am told is the golden triangle. I am told this is a good.

http://www.realestateview.com.au/Real-Estate/Property-Details-buy-residential-1632563_S.html

I have been advised that it had a permit for a new unit at the back a while ago and has just lapsed. Talking to the council they have said many of the properties around there that have applied for permits have been knocked back due to flooding levels. This place is a bit higher or something so is subdividable.

I figure the front house would be worth over 330k on its own and the block at the rear at 180K plus. So minus stamp duty and subdivisions etc, what do you think would be a good price for this place. Are my estimates way out ?

I may not develop just yet anyway, just a thought ?

It seems a good area, however I dont really know ? any opinions are appreciated ?

Thanks:D:D
 
Golden triangle is premium frankston central, would not be suprised if that area is one day marked for major development. I think your numbers stack up, could be a bargain. What do you want to pay.

Your correct that the town planning flooding overlay has been a problem on the other side of the road, this may be changed with the big pipe that been put in.

I think the exitsing house without the land on the back would be about 350K on a good day block even possibly 200-220K.

PS i am biased as I own property near there.
 
hi emma, personally i think there asking a bit much with the pricing, i think there just feeling the market, if it had plans and permits and was on 2 titles then it would be worth there price but theres the risk of it not being passed. plus council takes a least a year for permits asa rule of thumb.

so its really only worth the house price of $350K.

good luck and keep us informed . who's the agent you've been dealing with ??
 
thanks for the info yorkfish / gussman

The pics on the web dont quite do the property justice its pretty nice inside. I spoke to council and the planning permit has just expired. I had a look at a property just down the road (bundarra court) thats a knock down job and the agent is talking 380k plus but that one is going for auction, they applied for a permit but it got knocked back. Birdwood street (next street) sold for 565k. I can re-apply for the planning permit if council dont extend it, at least the plans are already done, what do u think ?

Yorkifish do you know golden triangle well ? I dont want to pass up good oppurtunities what are you basing your value at ? I was basing my value on a house on a 300m2 block not a 650m2.

Gussman where is your prop ?

Agents is Harcourts
 
hi emma, personally i think there asking a bit much with the pricing, i think there just feeling the market, if it had plans and permits and was on 2 titles then it would be worth there price but theres the risk of it not being passed. plus council takes a least a year for permits asa rule of thumb.

so its really only worth the house price of $350K.

good luck and keep us informed . who's the agent you've been dealing with ??
Click to expand...

Yorkfish, a property sold in nearby melvin street for 380k on a subdivided block, what are you basing your price on fact or fiction. Did perhaps u want to get in first ?;)

I dont think the property is overpriced, however I have said before I am biased.

If the permit has been previously approved and has lapsed more than 3 months ago, it should only be a formality to get it up and running again. You can apply to VCAT to do this.

Emma there is money to be made in the golden triangle, I dont think u can go wrong.

Good luck
 
hi guys, all i'm saying is thats its only worth a single house price at this point. the rest is conjecture.

not sure about house prices in that area of town as have not been watching too closeley. i have 2 in the frankston east/karingal and 1 in frangers south. so its not my area.

but sounds like a good deal if you can get it and the numbers stack up. go for it.

thanks yorkie
 
I'm excited about Frankston (againnnnn)

Hi all, to those interested in the 'quick gains' Frankston offers, I purchased
a neglected 4 bed/2bath; but structually sound 1070's AV Jenning home for
240K in Frankston East/Karingal area August 2009. Spent just over 45K fixing it up inside and out. I put it on the market late April with a range of
365 to 390K. I was prepared to sit it out for 8-12 weeks before accepting
offers, BUT, two weeks on, I accepted 377K - deal done.

I'm now sniffing around for similiar rundown's in the same area to do it all
over again - maybe 2 this time

SS
 
Southsider 2 said:
Hi all, to those interested in the 'quick gains' Frankston offers, I purchased
a neglected 4 bed/2bath; but structually sound 1070's AV Jenning home for
240K in Frankston East/Karingal area August 2009. Spent just over 45K fixing it up inside and out. I put it on the market late April with a range of
365 to 390K. I was prepared to sit it out for 8-12 weeks before accepting
offers, BUT, two weeks on, I accepted 377K - deal done.

I'm now sniffing around for similiar rundown's in the same area to do it all
over again - maybe 2 this time

SS
Click to expand...

What was the nett result after all reno costs, selling and buying costs and cap gains tax?

Quick thumbnail calc:
Cost $240k.
Purchases costs $12k (5%)
Reno $45k
Sold for $377k - agent's commish approx 2%? and conveyancing = $8000

Total costs = $65000

Total cap gain = $137k
minus costs of $65000 = $72k nett gain.

tax on $72k at 30% = $21600

$72,000 - $21600 =$50,400

Not including finance costs. What else did I miss?
 
Hi Bayview.

Sold :- 377K
Purchase :- -240K (self funded)
Improvements :- - 46,203.27 on overdraft acc @ 5%, say 3,500 owed
Conveyance :- Mates rate
Agent :- 9,000
Tax :- 23,490

Breakdown
Sold :- 377K
Purchase :- -240K
Improvements :- -49,700
Agent :- -9,000
Tax :- -23,490
Profit :- 54,810 ( over 8-9 months)

SS
 
Southsider 2 said:
Hi Bayview.

Sold :- 377K
Purchase :- -240K (self funded)
Improvements :- - 46,203.27 on overdraft acc @ 5%, say 3,500 owed
Conveyance :- Mates rate
Agent :- 9,000
Tax :- 23,490

Breakdown
Sold :- 377K
Purchase :- -240K
Improvements :- -49,700
Agent :- -9,000
Tax :- -23,490
Profit :- 54,810 ( over 8-9 months)

SS
Click to expand...

That's a good result for the time period.

Are you going again?

We have a 2x1 unit just north of the main hub. I was looking on re.com yesterday after seeing your post, and I could not see anything remotely like ours in our area for under $230k. Gotta love it.

We paid $155k for it a few years ago. I think the area (Frangers) is doing well steadily. Some areas more than others of course.
 
Understanding Frankston's secrets

Hi Marc,
I am very keen to keep the ball rolling. It has taken me some time
of contemplation to identify my comfort zone in Frankston's market
of markets! Generally Frankston East area ( say McMahons Road to
Lindrum Road and Jubliee Park to Skye Road) I know intimately.

At this stage, I dont consider properties that require a Building Permit
or a Builder to do improvements, (this rules out 3 bed x 1 bath prop's)
two many at bargin prices.

I look for 4 bed x 2 bath (or uniqueness), corner sites & SQM, geography (hills, views etc), good street presence/feel, evidence of a proactive neighbourhood regarding house & garden maintenance, nature strips - are they maintained, leased properties in good order eg: half a dozen parked on front lawn. If I feel satisfied with all above, the property can be as runned
down till the cow's come home as long as it is structually sound.

I have my favorite streets that I always keep an eye on but finding bargins
within them are far and few between.

Stanley Street :- Good Street feel
Queen Street :- Good Street feel
Nursery Avenue :- Opposite Jubilee Park
Olympic Avenue :- Good Street feel
Kareela Road :- Generally west side, large blocks
Wangarra Road :- Top of hill down west slope - heeps potential
Paisley Street :- Good Street feel
Daly Street :- Good street feel

I have few other next peg streets on the climb, I'll post later

regards SS
 
That's a nice selection criteria.

Good info for those out there who can't nail down how to select a property, or area.

Ever thought of (and is there any desire/capability) to start looking more beach side?

My belief (and living in Dromana has cemented this) is that beach side almost anywhere will always do well because most people want to live within walking distance to the water, but the properties in those areas are limited.

We see it all the time in summer here; we live approx 500 metres from the water where we rent currently, and it's a tad too far to walk and drag all the beach gear down to the beach. So we drive down. Seems ridiculous I know. And we are not the only ones.

However, I do see many people walking down to the beach, with stuff, and in almost every case they are leaving from houses closer to the beach than we are.

I've already pegged a couple of prime streets in Dromana for this reason (and close to the shops and restaurants) for our next IP purchase. It has to be a sub-div block as well.

The buy-in level is obviously higher, but as in your criteria; you keep an eye on it all, learn the intricacies and wait for the good value ones to come up.
 
No beachside ambitions yet Marc. Apart from Long Island, Frankstion
does not have a residential coastline ( comparing it to Safety Beach to
Sorrento ), Frankston coast is made up of cliff's to the South (great for
views), CBD and Seaford foreshore ( heavy vegetation + busy Nepean HWY).

In my view, buyer's (occupants not renter's) accept that Frankston is a
Bayside City, not a lazy resort like Dromana, and accept a short drive to the
Beach, however being on the beach is highly desired but limited by there
funds, this adds value to properties bay / city views (not glimp's) as a result
and can found all over Frankston. The area I indicated in my last post is a
5min drive to coast. Even in Langwarrin I have observed many properties with boats, so 10-15min from the coast does not impair these people
living the Bayside life.

The available Frankston residential coast line is outside my fingertip funds
and I doubt there would be many properties requiring the home improvements
that I currently look. Maybe in the future, but currently I am comfortable
working in the limits of Frankston that I have Identified. Also, apart from
distance to coastline, there are many features that can be marketed in my identified area that attracted consideration from the last buyers.

There are always better projects to be gained, but there are a lot worst
as well. I'm happy with the middle.

SS
 
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