Purchasing in VIC - Frankston Area

Just a little quote from this weeks local paper:-

"Frankston has topped a national list for the number of rental applications for properties in the past three months, tenancy application website
1form.com.au has stated. Frankston properties were the most sought after in Victoria and across the nation, website data revealed."

Thought this may be of interest.
 
REIV Sep quarter figures show the median house price in Frankston growing about 10% in the last quarter or about 20% in the past 12 months.

Median in Frankston is now $295,000.

Frankston North had an increase of over 27% in the past 12 months to a new median of $225,000 - and a massive 12.5% increase in the past 3 months.


Harris
 
Harris said:
REIV Sep quarter figures show the median house price in Frankston growing about 10% in the last quarter or about 20% in the past 12 months.

Median in Frankston is now $295,000.

Frankston North had an increase of over 27% in the past 12 months to a new median of $225,000 - and a massive 12.5% increase in the past 3 months.


Harris
Click to expand...

Thanks for the update Harris - really appreciate it. Such rapid growth occuring! Wow!!
 
Awesome! ... i knew this suburb had sooo much potential when i bought my house in 2006 (march) , i should have bought two. :)

Frankston North might have been rough 20 years ago and someone broke 1 of my windows with a candle ... but that can happen anywhere! ..

Yay! and thanx harris for all the good posts.

GG the younger one :)
 
hey forumites!

harris said frankston north has gone up 27% which is great (since i had a house there since early 06)

but my friends keeps teasing me saying that dosnt apply to my house but to the area as a whole , well i have a larger than avg. house and i put in a new kitchen (10k! ouch) and new windows (5k) , so i dont know how i can convince them that fr.north is 27% more worth it than in 2006 when no one wanted to live in Fr.North (except me) :)

Thanx in advance.
 
GordonGekko said:
hey forumites!

harris said frankston north has gone up 27% which is great (since i had a house there since early 06)

but my friends keeps teasing me saying that dosnt apply to my house but to the area as a whole , well i have a larger than avg. house and i put in a new kitchen (10k! ouch) and new windows (5k) , so i dont know how i can convince them that fr.north is 27% more worth it than in 2006 when no one wanted to live in Fr.North (except me) :)

Thanx in advance.
Click to expand...

why do you have a need to convince anyone GG..? Its your prop and the only person who needs to be convinced of its true value is yourself..!

My 2 prop have gone up 66% in 18 months since anything on 800 sqm will atleast command $240k min in Frank Nth and both of the prop are technically speaking dumps.. Renovated prop on large blocks would fetch in excess of $250k... so you have done well.

Harris
 
ahh because my co-workers mainly lives in "posh" outer eastern suburbs and then do not like that fr.north gone up that much and they are not part of the windfall :)

thanx harris!
 
hello frankston fans,
Regarding the sale of 42 larder street frankston i received an email as follows,

Hi Dom
The above mentioned property was passed in at Auction for $360000 and is still for sale for $395000 plus. If you would like a copy of the section 32 please contact me and I will forward one on to you.

Regards

Liz Newland
Sales Consultant
Hocking Stuart Frankston Pty Ltd

I thought this would be jumped on all over considering the possible rent return could be $3500+ a month or $880 per week! The 30% deposit may have dampened the buyers. Oh well will keep an eye on it i am sure in due time it will sell for a lot higher in my opinion.

Dom
 
DAAJ said:
I thought this would be jumped on all over considering the possible rent return could be $3500+ a month or $880 per week! The 30% deposit may have dampened the buyers.
Click to expand...

It is a very unique proposition due to it being classified as commercial prop (low LVR and 30% deposit), sitting on a very small block (less than 400sqm) which is almost half the block size in that area, the occupancy historically with uni students / boarders would be around 60% on average across the whole year , high management fees (10% for most REA), frequent conflicts and tribunal hassles and hence a very limited market for such properties.

I would equate that prop in terms of investment potential to a fully serviced student or holiday accommodation with high entry price point, very less land content, good yield, high deposit for lvr purpose and difficulties in on-selling such prop.

Harris
 
its the 14th now , and as always im looking forward to Harris' exelent update for Frankston , but maybe this thread has outlived itself? eventhough i find Frankston area very interesting , even today a real estate agent came to my house and asked if i wanted to sell my house (in Frankston North) , as they were very short of houses to sell. since its my IPOR im not going to sell it unless i was offered like x2 of the value or something crazy like that.

soo come on down Harris! , im eager to get the lowdown of Frankston and any news about the marina and what other interesting things you heard about the bay etc.

viva Eastlink!

GG , the younger one.

ps. just one quick question , should i buy a house in corio or a unit in a "better" off place like ferntree gully/Mulgrave? , thanks for your answers in advance!
 
Hello Harris,

In reply about student accommodation. My RE is charging me 6% because of the large amount of tenants,the merrier the cheaper. My occupancy rate has been around the 75% mark all year.Even if it was 60% remember 60% of $3800 is $2280. Its would not be a cash flow positive property if it were bought for say $450,000 but you pay for location and capital gain.($450,000 @ 8.25% I/O = $3093.75 PCM).I have never had any conflicts or complains since i have bought the property (about 11 months ago) and no damage or repairs!The larger deposit has made it positively geared for me!The land is 600sqm and plenty of car accommodation.Addmitingly my property is better than this one so i asume i would not have as much trouble to sell it.

Cheers
Dom :)
 
Hi Dom,

I to, have had lodging houses, but I ran them myself (3 in total). They have their good points and bad. It worked well for me for the time I was operating them this way and the income is great and as you said, usually you would only have a 25% vacancy at anyone time, so it is still very viable.

However, I have had a significant number of issues with lodgers not getting along and not pulling their weight and I have often had to sort things out or ask people to leave etc. You also have the problem with drugs and mental illness and in the end it just wasn't worth it.

Having said that though, going through a realestate would be entirely differant as they would handle all that. With my situation I was able to give them 2 weeks notice as they were asked to sign an agreement before moving in. I am under the impression that evicting them once it is through a real estate is a little more difficult, I could be wrong.

The other problem I had is that because they were lodgers, they didn't care, or take personal responsibility for the property and didn't care if something went wrong in the property. I was able to gain access to the property anytime I chose, because of my agreement with them. Can I ask if you can to?

I now have tenants in each property and for the first time I feel I can rest and know that the people in them are looking after them and love their new home. I know their can be problems with any rental, but I did find lodging a little more stressful.

If you have the time and the patience however, it is a great way of getting ahead. I did it for 5 years and it was a wonderful experience, but I am getting a little too old for it now.

I wish you well with it.

Tony
 
Last edited:
Hi Toni,

Interesting story you have their Toni. My property manager is great anything she thinks can be improved she asks me, for instance i have a cleaner for two hours a month cleaning the bathrooms and kitchens.Cost 50 Dollars but well worth it ad my returns a good.(and tax deductible) She screens all the tenants carefully and advises if they are good or not so good.I have a gardener to.
I can have access as long as i give a few days notice. I prefer to have multiple dwellings mainly because when rent is raised i have 8 rent rises.:)
But its all par as you have 8 individual rates to pay.Ouch.
I am enjoying it so far so i will stick with this property for a long time.And i have had great capital gain.

Dom :)
 
It's a great location and as you said on a full block. Sounds like you have really good agents working for you to, so not as much hassel as I had. Just sit back now and count the dollars. Frankston is only in the early stages of growth, so we can look forward to a lot more yet.:)

Well done!

Toni
 
Sorry to here about the problems with the agents of the deleted posts.:mad:
In that respect i have been lucky. But also only when possible i to pick the largest agents around Ray white, LJ hooker etc.Thats my advise only.
I have been reading on a few articles about property prices and how some cities $500K will be cheap by 2010 ? If this is the case then places like frankston as Toni said would have a long way to go. I am a bit mystified at todays market compared to the last 20 or 30 years ago a pattern has broken with an upward trend. I will be buying in the next year or two. Good luck everyone.
:)
Dom
 
Another boost for Frankston

From the Melbourne Herald Sun 21 Nov.
ST KILDA Football Club is quitting its traditional home for a new multi-million-dollar super stadium at Frankston.
St Kilda's new home will be jointly funded by the AFL, St Kilda, State Government and Frankston City Council in a massive boost for the bayside suburb.
Frankston Oval, the home of the Dolphins VFL club, will undergo an immediate revamp.
The Frankston City Council will make up the difference on facilities including offices, lap pools, a gymnasium, cafe and community centre.
 
Purple Patch said:
From the Melbourne Herald Sun 21 Nov.
ST KILDA Football Club is quitting its traditional home for a new multi-million-dollar super stadium at Frankston.
St Kilda's new home will be jointly funded by the AFL, St Kilda, State Government and Frankston City Council in a massive boost for the bayside suburb.
Frankston Oval, the home of the Dolphins VFL club, will undergo an immediate revamp.
The Frankston City Council will make up the difference on facilities including offices, lap pools, a gymnasium, cafe and community centre.
Click to expand...

I heard this news this morning.. not sure what the extent of the impact will this be on the area, but at the very least it can't be negative. Now am just patiently waiting for Eastlink to complete and see how many ppl from north eastern suburbs will be attracted to Frankston. Wonder when will bogans in Frankston North and the Pine move out of the area completely?
 

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