Hello Forumites ... what is the general opinion about the Frankston,
Cranbourne areas ?
Would the yields/ growth merit consideration ?
Thanks.
Cranbourne areas ?
Would the yields/ growth merit consideration ?
Thanks.
Purchasing in VIC - Frankston Area
- Thread starter Cherry Pro
- Start date
This is my opinion. Cranbourne is located in the 2nd fastest growing LGA in Australia which is a great plus. Great for business to set up and cash in on an area that is spending more and more money. However, from a property point of view, I believe there are better buy and hold areas in Melbourne. There is still a lot of land there with subdivisions planned for a while yet. I would guess most of the people moving in are buying/building new homes and demand for the more established parts aren't anything special. Still, DYODD
Cheers
Oscar
Cheers
Oscar
Hi Cherry Pro
I just purchased my fifth property in Frankston. I have been closely monitoring the frankston market for a while and it has really started to pick up.. showing very strong growth at the moment.
Specially in the last 3-4 months, the market has become very buoyant and significant stock is getting sold before it gets listed.
Every now and then, you would find a dual occupancy property hit the market, where you would be able to get 6% or higher returns. rental returns otherwise vary between 5.5% in Frankston North to sub 4% in Frankston South.
There had been a lot of talk about the better / worse pockets within Frankston, however the price points in so called worse areas of Pines / Frankston North have gone up relatively quicker than central, Karingal or Frank South.
I have mainly bought dual occupancy and development potential properties.. with the latest buy in Frankston South.
Almost every agent that I have spoken to over the last couple of months has mentioned that this is the busiest period they have experienced over the last few years.
WA investors are very active in the market and are picking up a lot of properties with half decent yields - Some of the first day inspections that I have attended had half a dozen people looking through the property at the same time.
I have also been speaking to a few licensed valuers who have confirmed the sudden upward movement in the market. My valuer at Market line valuers (who do more than 80% of the valuations for the banks) mentioned that he has stopped benchmarking new valuations against anything that is more than 45 days old.
The frankston by-pass is 10 - 11 months ahead of schedule and is expected to open late this year instead of next year. There is also a lot of new development happening around Yuille/ Kars St in Frankston South and majority of new town houses are priced in excess of $450k.
Hope that helps
Cheers
Harris
I just purchased my fifth property in Frankston. I have been closely monitoring the frankston market for a while and it has really started to pick up.. showing very strong growth at the moment.
Specially in the last 3-4 months, the market has become very buoyant and significant stock is getting sold before it gets listed.
Every now and then, you would find a dual occupancy property hit the market, where you would be able to get 6% or higher returns. rental returns otherwise vary between 5.5% in Frankston North to sub 4% in Frankston South.
There had been a lot of talk about the better / worse pockets within Frankston, however the price points in so called worse areas of Pines / Frankston North have gone up relatively quicker than central, Karingal or Frank South.
I have mainly bought dual occupancy and development potential properties.. with the latest buy in Frankston South.
Almost every agent that I have spoken to over the last couple of months has mentioned that this is the busiest period they have experienced over the last few years.
WA investors are very active in the market and are picking up a lot of properties with half decent yields - Some of the first day inspections that I have attended had half a dozen people looking through the property at the same time.
I have also been speaking to a few licensed valuers who have confirmed the sudden upward movement in the market. My valuer at Market line valuers (who do more than 80% of the valuations for the banks) mentioned that he has stopped benchmarking new valuations against anything that is more than 45 days old.
The frankston by-pass is 10 - 11 months ahead of schedule and is expected to open late this year instead of next year. There is also a lot of new development happening around Yuille/ Kars St in Frankston South and majority of new town houses are priced in excess of $450k.
Hope that helps
Cheers
Harris
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Thanks guys - that's helpful.
Hi Jingo
Looking at your avatar sign of "Long term investor", I am surprised that you would not give your properties a good 5 year period to guage the actual performance.
I would not get disappointed in my properties if they didnt move for a single year.. Without having any knowledge of your particular circumstances, you would have incurred stamp duty and other buying costs for these prop, you would be paying for selling costs and then having to pay stamp duty and legals etc all over again (on lower inner suburb yields) in order to expect better cap growth..?
I would suggest that you call as many agents as possible in Frankston on a week day and have a good chat to them about what the market is currently doing. Call half of them wearing seller's hat wanting to sell your prop in Karingal and then as a potential buyer looking to add to your current portfolio. You might be surprised with what they tell you about the current market conditions (and obviously come back and post your feedback on the forum).
There is an acute shortage of rental stock in Frankston. One of the prop I recently bought had what I thought was overly optimistic rental appraisal by the agent, however a new tenant is lined up even before settlement wanting to pay 15% more than the already ambitious rental appraisal..! (and that prop is in Karingal as well).
If nothing else moved, the upward rental movement should in itself be sufficient to create enough pressure on the capital value of the properties and thats what is happening in most inner suburbs as well.
Have you thought about perhaps adding a one bedroom granny flat/ self contained units at the rear of one of your propeties..? Currently, the going rental is about $150/week for one of those and if you do your numbers, you might be surprised at the net cash flow position for that property.
Hope that helps
Cheers
Harris
Looking at your avatar sign of "Long term investor", I am surprised that you would not give your properties a good 5 year period to guage the actual performance.
I would not get disappointed in my properties if they didnt move for a single year.. Without having any knowledge of your particular circumstances, you would have incurred stamp duty and other buying costs for these prop, you would be paying for selling costs and then having to pay stamp duty and legals etc all over again (on lower inner suburb yields) in order to expect better cap growth..?
I would suggest that you call as many agents as possible in Frankston on a week day and have a good chat to them about what the market is currently doing. Call half of them wearing seller's hat wanting to sell your prop in Karingal and then as a potential buyer looking to add to your current portfolio. You might be surprised with what they tell you about the current market conditions (and obviously come back and post your feedback on the forum).
There is an acute shortage of rental stock in Frankston. One of the prop I recently bought had what I thought was overly optimistic rental appraisal by the agent, however a new tenant is lined up even before settlement wanting to pay 15% more than the already ambitious rental appraisal..! (and that prop is in Karingal as well).
If nothing else moved, the upward rental movement should in itself be sufficient to create enough pressure on the capital value of the properties and thats what is happening in most inner suburbs as well.
Have you thought about perhaps adding a one bedroom granny flat/ self contained units at the rear of one of your propeties..? Currently, the going rental is about $150/week for one of those and if you do your numbers, you might be surprised at the net cash flow position for that property.
Hope that helps
Cheers
Harris
Hi Harris,
Thanks for the reply.
Looking at your avatar sign of "Long term investor", I am surprised that you would not give your properties a good 5 year period to guage the actual performance.
Oops........ I have betrayed my avatar! My investments in Frankston were based on research I did on the area at the time (2005). Really the main reason I bought into Frankston was to be in a position to benefit from the completion of East Link. The completion of which is drawing near, and it sounds as though some growth is occuring in the area. I am just being impatient and would usually give my investments a lot longer to 'mature'.
I would not get disappointed in my properties if they didnt move for a single year.. Without having any knowledge of your particular circumstances, you would have incurred stamp duty and other buying costs for these prop, you would be paying for selling costs and then having to pay stamp duty and legals etc all over again (on lower inner suburb yields) in order to expect better cap growth..?
Yes, you are correct about paying stamp duty, etc, etc on the IPs. Would need to accept lower yields (in terms of %) if I re- invested in the inner city, but would be willing to do this to achieve superior capital growth. (10% + p/a).
As a side note - I do have properties in the inner suburbs and have experienced great capital growth with no tenant problems. (Currently have issues with tenants in Frankston at the moment).
I would suggest that you call as many agents as possible in Frankston on a week day and have a good chat to them about what the market is currently doing. Call half of them wearing seller's hat wanting to sell your prop in Karingal and then as a potential buyer looking to add to your current portfolio. You might be surprised with what they tell you about the current market conditions (and obviously come back and post your feedback on the forum).
I will take you up on this. I had a conversation with the agent who is managing my IPs about Frankston's prospects. He has faith in the area, and is currently buying IPs himself. (I trust that he is telling me the truth about this - I believe him to be honest, and besides he could just as easily have told me to sell so that he could take the listings.)
There is an acute shortage of rental stock in Frankston. One of the prop I recently bought had what I thought was overly optimistic rental appraisal by the agent, however a new tenant is lined up even before settlement wanting to pay 15% more than the already ambitious rental appraisal..! (and that prop is in Karingal as well).
Yes, I have spoken with my rental manager. She has reassured me that if I need to move my tenants on (who are not exactly ideal), that there are plenty of tenants out in the market at the moment.
If nothing else moved, the upward rental movement should in itself be sufficient to create enough pressure on the capital value of the properties and thats what is happening in most inner suburbs as well.This is happening in the inner areas.
Hopefully will spread to other areas such as Frankston.
Have you thought about perhaps adding a one bedroom granny flat/ self contained units at the rear of one of your propeties..? Currently, the going rental is about $150/week for one of those and if you do your numbers, you might be surprised at the net cash flow position for that property.
Great idea. Will look into this too.
I shall post again once I have contacted the agents and let you know what they said!!!
Thanks for your information.
Regards Jason.
Hi All,
We live (not at present) in Dromana and my wife worked at the "Frangers" Hospital before we moved to the US, her sister currently lives in "The Pines".
We bought an I.P in Frankston Central 3 years ago, so we know the area reasonably well.
My view is that the area can only keep going up as there are very few cheap areas left on the Bay, and within commute distance from Melb.
Add to that the amount of infrastructure in Frankston, as well as the rapidly completing Eastlink extension, as well as plans for a Marina in the future.
Sure there are some less desirable parts of the Frankston City, but even poorer people have to live somewhere and quite often make good tenants.
Even "The Pines" has seen some great growth since my sister-in-law bought her house there. She has doubled her money in 3 years.
As has been mentioned; the rental returns aren't all that good; especially since the recent cap growth, but if you are into cap growth and future strong growth I think it's a winner.
We live (not at present) in Dromana and my wife worked at the "Frangers" Hospital before we moved to the US, her sister currently lives in "The Pines".
We bought an I.P in Frankston Central 3 years ago, so we know the area reasonably well.
My view is that the area can only keep going up as there are very few cheap areas left on the Bay, and within commute distance from Melb.
Add to that the amount of infrastructure in Frankston, as well as the rapidly completing Eastlink extension, as well as plans for a Marina in the future.
Sure there are some less desirable parts of the Frankston City, but even poorer people have to live somewhere and quite often make good tenants.
Even "The Pines" has seen some great growth since my sister-in-law bought her house there. She has doubled her money in 3 years.
As has been mentioned; the rental returns aren't all that good; especially since the recent cap growth, but if you are into cap growth and future strong growth I think it's a winner.
Fringe areas of Frankston
With Frankston having a recent rapid increase is there any value in looking at the fringe suburbs such as Baxter, Carrum Downs, Somerville etc?
Any thoughts appreciated
Thanks
PP
With Frankston having a recent rapid increase is there any value in looking at the fringe suburbs such as Baxter, Carrum Downs, Somerville etc?
Any thoughts appreciated
Thanks
PP
With Frankston having a recent rapid increase is there any value in looking at the fringe suburbs such as Baxter, Carrum Downs, Somerville etc?
Any thoughts appreciated
Thanks
PP
Hi Purple Patch,
I don't think Frankston has had much of an increase yet, just more activity. Although I have promised Harris in my post above that I will contact some RE agents to find out! I shall do this in the near future and post on this thread.
I don't know enough about the suburbs you mention above to be of any use.
All the best,
Jason.
Have Frankston Prices risen???
Hi Harris,
Ok,
I have done a quick ring around the agents and posed as a buyer. Two agents are still waiting to ring me back (MPRE - useless as usual - don't get me started on them but if you're interested refer back to an earlier post under property management - Tenant in Arrears). The other agent - Wentworth Crowders will also ring me back.
I managed to speak with Buxton real estate. I asked the approximate price for a 3 bedroom home on a standard size block around the area which is 663sqm. (Like the one I have). She initially said that they were going for about $240,000-$250,000 but then said that one sold recently for $232,000 and was advertised for $239,000. The property she mentioned was in reasonable condition but needed a new kitchen. It also had a double lock up steel garage.
She mentioned that prices have moved but only because there is a shortage of stock in the area. (Would that be all of the WA investors coming over here and grabbing the stock?? I have heard of investors buying up big!!).
So on this very very very superficial 'research' of mine, it would seem that prices are on the move, if only slightly.
I shall let you know what the other agents say if they call. I doubt MPRE will call as in my opinion they cannot get their act together to do anything properly! (Especially manage residential rental properties!). But thats another story....
Hi Harris,
Ok,
I have done a quick ring around the agents and posed as a buyer. Two agents are still waiting to ring me back (MPRE - useless as usual - don't get me started on them but if you're interested refer back to an earlier post under property management - Tenant in Arrears). The other agent - Wentworth Crowders will also ring me back.
I managed to speak with Buxton real estate. I asked the approximate price for a 3 bedroom home on a standard size block around the area which is 663sqm. (Like the one I have). She initially said that they were going for about $240,000-$250,000 but then said that one sold recently for $232,000 and was advertised for $239,000. The property she mentioned was in reasonable condition but needed a new kitchen. It also had a double lock up steel garage.
She mentioned that prices have moved but only because there is a shortage of stock in the area. (Would that be all of the WA investors coming over here and grabbing the stock?? I have heard of investors buying up big!!).
So on this very very very superficial 'research' of mine, it would seem that prices are on the move, if only slightly.
I shall let you know what the other agents say if they call. I doubt MPRE will call as in my opinion they cannot get their act together to do anything properly! (Especially manage residential rental properties!). But thats another story....
Hi Jingo
What I meant by suggesting to call agents was to call atleast 20 + agents (not the agency itself but real estate agents on their mobile numbers).
If you wanted a relatively reliable data statistically, you would need to call as many agents as possible and ask roughly similar (some open ended and some closed) questions and get their opinion.
That would mean calling 4-5 agents from similar agency. Easiest way to do would be to do a general search on real estate or domain for frankston properties and then asking the listing agent a question or 2 about that property and then digress towards asking questions relating to sales activity, market direction, better or quick selling pockets, trend over the last 3- 6 months, price point movements, average selling time, adjoining areas growth etc.
Then find the common theme amongst all the feedback that you are receiving. If 18 out of 20 agents tell you that this is the busiest time for them over the last few years (2-3 years) then you know that there is more to the local market then a relatively small increase in activity.
You cant discount MPRE only because they are bad property managers. They have 3 estate agencies in Frankston and by far the largest in the area. They have tens of agents employed, so you can ask those agents rather than leaving a call back message for the agency.
The key is to pro-actively seek opinion from a large group of individuals and find common message amongst the feedback. If possible, call a few agents in Seaford, Carrum as well.
Also to add that within Karingal, you can buy a 3 bed house for $220k and within 100 metres pay $300k for the other. What you are referring to for a standard block with a standard house is too subjective.
(Also happy to post info on my 5 purchases in Frank as well as 3 that my brother in law have purchased to get some real data in the mix)
Good luck
Harris
What I meant by suggesting to call agents was to call atleast 20 + agents (not the agency itself but real estate agents on their mobile numbers).
If you wanted a relatively reliable data statistically, you would need to call as many agents as possible and ask roughly similar (some open ended and some closed) questions and get their opinion.
That would mean calling 4-5 agents from similar agency. Easiest way to do would be to do a general search on real estate or domain for frankston properties and then asking the listing agent a question or 2 about that property and then digress towards asking questions relating to sales activity, market direction, better or quick selling pockets, trend over the last 3- 6 months, price point movements, average selling time, adjoining areas growth etc.
Then find the common theme amongst all the feedback that you are receiving. If 18 out of 20 agents tell you that this is the busiest time for them over the last few years (2-3 years) then you know that there is more to the local market then a relatively small increase in activity.
You cant discount MPRE only because they are bad property managers. They have 3 estate agencies in Frankston and by far the largest in the area. They have tens of agents employed, so you can ask those agents rather than leaving a call back message for the agency.
The key is to pro-actively seek opinion from a large group of individuals and find common message amongst the feedback. If possible, call a few agents in Seaford, Carrum as well.
Also to add that within Karingal, you can buy a 3 bed house for $220k and within 100 metres pay $300k for the other. What you are referring to for a standard block with a standard house is too subjective.
(Also happy to post info on my 5 purchases in Frank as well as 3 that my brother in law have purchased to get some real data in the mix)
Good luck
Harris
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I purchased my first IP in Carrum Downs in 2001. This was from Troy, who I believe is the founder of MPRE. I've interacted with three of their offices in the area (Frankston South, Beach Street and Carrum Downs) and the people I dealt with there were the only real salespeople I met in the area. I guess it depends on who you get.
Thanks for the response.
I would be interested in details regarding your IP's in Frankston.
I think I'll order a bank valuation for my properties. Then I shall really know whether there has been some movement without all of the Real estate agents sales talk!
Regards Jason.
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Frankston on the Move!!!
Ok,
Crowders just called back. (Still waiting for MPRE to call, could be a while going on track record!!)
They have a place for sale at No. 3 Kippling Place. 3 bed, very good condition. Ducted Heating, Double carport. Will sell between $235,000-$240,000.
Most importantly, the agent is run off his feet. As the agent from Buxton also mentioned there is no stock on the market. Last month he sold 23 properties in Frankston. (Must be a lot for him). Has only listed 6 this month. Less properties on the market than he has ever experienced in Frankston.
His view is that this is the last opportunity buyers will have to buy a bayside property under $300,000. He thinks that there will be a big move in prices once East Link is finished.
He mentioned that he used to work in Croydon, and that when the Eastern Freeway was completed prices nearly doubled over night. Although he did mention that he doesn't have a crystal ball, and it would be unethical of him to predict such a thing for Frankston.
Was good to chat to actually.
I shall keep you posted if further agents call. (Only if you are interested).
Regards Jason.
Ok,
Crowders just called back. (Still waiting for MPRE to call, could be a while going on track record!!)
They have a place for sale at No. 3 Kippling Place. 3 bed, very good condition. Ducted Heating, Double carport. Will sell between $235,000-$240,000.
Most importantly, the agent is run off his feet. As the agent from Buxton also mentioned there is no stock on the market. Last month he sold 23 properties in Frankston. (Must be a lot for him). Has only listed 6 this month. Less properties on the market than he has ever experienced in Frankston.
His view is that this is the last opportunity buyers will have to buy a bayside property under $300,000. He thinks that there will be a big move in prices once East Link is finished.
He mentioned that he used to work in Croydon, and that when the Eastern Freeway was completed prices nearly doubled over night. Although he did mention that he doesn't have a crystal ball, and it would be unethical of him to predict such a thing for Frankston.
Was good to chat to actually.
I shall keep you posted if further agents call. (Only if you are interested).
Regards Jason.
Jason
details re my purchases
1- 7 Aleppo Crescent frankston nth bought for $144,000 - May 06
2- 9 Aleppo Crescent frankston nth bought for $145,000 - May 06
side by side properties each on 700 sqm with a 3 bedroom house renting for $150/week.
Nothing in Frankston Nth with a decent 3 bedrrom property available at under $180k.
Conservatively, if their actual value is $175 each today, then thats an increase in the value of over 20% inside 12 months !
3- 13 Ellis St Frankston (Karingal) 3 bed renovated property and 2 bed self contained unit - rental appraisal of $370 per week - bought Mar 07 for $300k on 780sqm
This property had massive interest and had 4 offers inside first 24 hours.
4- 4 bed , 3 bath dble story fully renovated on 5 Banyan Dve Frankston (Karingal) bought for $285k...had rental appraisal of $285 per week, however tenant ready to move in willing to pay $325pw immediately after settlement
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=103784266&s=vic&snf=rbs&t=res
5- Development block (3 unit site) in frankston South for $420k - Again purchased before it got listed for a really good price -
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=103921368&s=vic&snf=rbs&t=res
These are the properties that my brother in law bought last week
http://www.realestate.com.au/cgi-bi...eader=&c=10875079&s=vic&snf=rbs&tm=1176379120
Paid $325k in karingal on 600 sqm
http://www.realestate.com.au/cgi-bi...eader=&c=99458242&s=vic&snf=rbs&tm=1176379201
another Karingal property bought for $280k
Something else I stumbled upon this morning is this property in Seaford,
http://www.realestate.com.au/cgi-bi...header=&c=8616294&s=vic&snf=rbs&tm=1176377144
This t/house and another identical t/house listed for sale in Apr 06 for $310k each. I offered $300k each for both however my offer was declined. Same t/house listed at $389k now and the agent tells me that it should sell within the next couple of days at very close to asking price - This represents again an increase of close to 25% on asking price within 12 months..!
Watching the market and talking to agents almost on a daily basis, I am convinced beyond any doubt that there has been a very significant increase in activity in Frankston,Fran Nth, fran Sth, Seaford and Carrum as well as decent increases in the property values in the last 12 months (espeically last 4 months). There is nothing to suggest that its a minor blip - To me, the increase in activity and property values seem to be on the way up and should acclerate around the east link completion time (late this year).
Almost every second property listed is under offer and selling time of majority of properties seems to be under a week (almost all of the more than 100 properties that I have investigated).
Will keep on posting as more info comes to light and I get quarterly statistics on price points.
Cheers
Harris
details re my purchases
1- 7 Aleppo Crescent frankston nth bought for $144,000 - May 06
2- 9 Aleppo Crescent frankston nth bought for $145,000 - May 06
side by side properties each on 700 sqm with a 3 bedroom house renting for $150/week.
Nothing in Frankston Nth with a decent 3 bedrrom property available at under $180k.
Conservatively, if their actual value is $175 each today, then thats an increase in the value of over 20% inside 12 months !
3- 13 Ellis St Frankston (Karingal) 3 bed renovated property and 2 bed self contained unit - rental appraisal of $370 per week - bought Mar 07 for $300k on 780sqm
This property had massive interest and had 4 offers inside first 24 hours.
4- 4 bed , 3 bath dble story fully renovated on 5 Banyan Dve Frankston (Karingal) bought for $285k...had rental appraisal of $285 per week, however tenant ready to move in willing to pay $325pw immediately after settlement
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=103784266&s=vic&snf=rbs&t=res
5- Development block (3 unit site) in frankston South for $420k - Again purchased before it got listed for a really good price -
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=103921368&s=vic&snf=rbs&t=res
These are the properties that my brother in law bought last week
http://www.realestate.com.au/cgi-bi...eader=&c=10875079&s=vic&snf=rbs&tm=1176379120
Paid $325k in karingal on 600 sqm
http://www.realestate.com.au/cgi-bi...eader=&c=99458242&s=vic&snf=rbs&tm=1176379201
another Karingal property bought for $280k
Something else I stumbled upon this morning is this property in Seaford,
http://www.realestate.com.au/cgi-bi...header=&c=8616294&s=vic&snf=rbs&tm=1176377144
This t/house and another identical t/house listed for sale in Apr 06 for $310k each. I offered $300k each for both however my offer was declined. Same t/house listed at $389k now and the agent tells me that it should sell within the next couple of days at very close to asking price - This represents again an increase of close to 25% on asking price within 12 months..!
Watching the market and talking to agents almost on a daily basis, I am convinced beyond any doubt that there has been a very significant increase in activity in Frankston,Fran Nth, fran Sth, Seaford and Carrum as well as decent increases in the property values in the last 12 months (espeically last 4 months). There is nothing to suggest that its a minor blip - To me, the increase in activity and property values seem to be on the way up and should acclerate around the east link completion time (late this year).
Almost every second property listed is under offer and selling time of majority of properties seems to be under a week (almost all of the more than 100 properties that I have investigated).
Will keep on posting as more info comes to light and I get quarterly statistics on price points.
Cheers
Harris
Hi Harris,
Thanks for all of this information. I find it really interesting. Your tips for sourcing properties in an earlier post were also terrific. I have saved these in a file for reference so that I can implement them when I purchase a property in the future.
My properties in Karingal are no where near as nice as the ones you and your brother in law have purchased. However, they are convenient to the hub. (Walking distance). One is four bedrooms, freshly painted and carpeted. The other is a simple 3 bedroom property. I purchased the 4 bedroom home for $228,000 in 2005, (Flyn Court) and the other for $210,000 (Nesbit Court) in 2006.
It will be exciting to see the prices continue to rise as the East Link project comes on line.
The development block you have acquired looks great. How many units will you be able to fit on the block? 1000sqm is quiet a large block.
The townhouse in Seaford looks interesting as well. Thats a huge price increase in a short space of time.
I will get bank valuations done on my two later in the year as I intend to draw on some of the equity to purchase shares. I shall post the results here too.
Thanks again, Your information is priceless!
Regards Jason.
Thanks for all of this information. I find it really interesting. Your tips for sourcing properties in an earlier post were also terrific. I have saved these in a file for reference so that I can implement them when I purchase a property in the future.
My properties in Karingal are no where near as nice as the ones you and your brother in law have purchased. However, they are convenient to the hub. (Walking distance). One is four bedrooms, freshly painted and carpeted. The other is a simple 3 bedroom property. I purchased the 4 bedroom home for $228,000 in 2005, (Flyn Court) and the other for $210,000 (Nesbit Court) in 2006.
It will be exciting to see the prices continue to rise as the East Link project comes on line.
The development block you have acquired looks great. How many units will you be able to fit on the block? 1000sqm is quiet a large block.
The townhouse in Seaford looks interesting as well. Thats a huge price increase in a short space of time.
I will get bank valuations done on my two later in the year as I intend to draw on some of the equity to purchase shares. I shall post the results here too.
Thanks again, Your information is priceless!
Regards Jason.
Have you guys researched Sandhurst, Settlers Run and Marriot Waters as premium land estates in the area that may attract higher returns on built properties?
I'd be interested in hearing your thoughts.
I'd be interested in hearing your thoughts.
simple exercise.. astonishing results..!
A very simple exercise with very interesting results:
I thought if, as all agents in Frankston say its been the busiest time for them in years, then it must reflect in the figures on real estate website
I chose 3 suburbs – Frankston, Dandenong and Werribee
This was a random selection of suburbs with roughly equal distance to CBD and known to be very strong satellite centres within Melbourne Metro with their own strong local infrastructure.
I believe that the price points would be roughly similar across these suburbs (Werribee might be a bit cheaper). All these 3 suburbs have what people think are really bad pockets and relatively good pockets. Reputation wise, personally I would consider all of them to be equal, however other people might have different opinions based on their own perceptions/ research.
Now to the exercise and results:
I chose realestate.com.au for being the largest and most comprehensive search engine and decided to query all 3 suburbs with identical search criteria
I searched Frankston, Dandenong and Werribee and checked “search surrounding areas” option for all 3
All 3 searches resulted in 200+ searches.
Out of Dandenong’s 200 first search results, 6 properties were “Under contract/ Under offer”
Werribee had 13 under contract
Frankston had 65 properties under contract for the first 200 searches..!
I then checked the dates/ called some agents to confirm the last sale from those searches and found that in all 3 suburbs, oldest sale was approximately 4 weeks. This would discount the theory that real estate agents in Frankston would like to keep the listing up long after the property was sold. Infact one of the property that I bought on 13 Ellis St Frankston about 3 weeks ago has already been taken off the real estate website.
That for me was a very astonishing result. If demand is a key determinant of rising property value, then surely Frankston has possibly the highest activity / demand level out of any other outer suburb in melbourne currently.
The gap is too wide to be side lined as a minor aberration. On the face of this very simple exercise suggests a phenomenal demand factor in Frankston area.
At the risk of being labelled as spruiking the area after I have bought a few properties there, I welcome everyone to counter my conclusion/suggestions with their own arguments and happy to stand corrected, if what I am suggesting does not sound correct.
Regards
Harris
A very simple exercise with very interesting results:
I thought if, as all agents in Frankston say its been the busiest time for them in years, then it must reflect in the figures on real estate website
I chose 3 suburbs – Frankston, Dandenong and Werribee
This was a random selection of suburbs with roughly equal distance to CBD and known to be very strong satellite centres within Melbourne Metro with their own strong local infrastructure.
I believe that the price points would be roughly similar across these suburbs (Werribee might be a bit cheaper). All these 3 suburbs have what people think are really bad pockets and relatively good pockets. Reputation wise, personally I would consider all of them to be equal, however other people might have different opinions based on their own perceptions/ research.
Now to the exercise and results:
I chose realestate.com.au for being the largest and most comprehensive search engine and decided to query all 3 suburbs with identical search criteria
I searched Frankston, Dandenong and Werribee and checked “search surrounding areas” option for all 3
All 3 searches resulted in 200+ searches.
Out of Dandenong’s 200 first search results, 6 properties were “Under contract/ Under offer”
Werribee had 13 under contract
Frankston had 65 properties under contract for the first 200 searches..!
I then checked the dates/ called some agents to confirm the last sale from those searches and found that in all 3 suburbs, oldest sale was approximately 4 weeks. This would discount the theory that real estate agents in Frankston would like to keep the listing up long after the property was sold. Infact one of the property that I bought on 13 Ellis St Frankston about 3 weeks ago has already been taken off the real estate website.
That for me was a very astonishing result. If demand is a key determinant of rising property value, then surely Frankston has possibly the highest activity / demand level out of any other outer suburb in melbourne currently.
The gap is too wide to be side lined as a minor aberration. On the face of this very simple exercise suggests a phenomenal demand factor in Frankston area.
At the risk of being labelled as spruiking the area after I have bought a few properties there, I welcome everyone to counter my conclusion/suggestions with their own arguments and happy to stand corrected, if what I am suggesting does not sound correct.
Regards
Harris
