Purchasing in VIC - Frankston Area

on my way home , i noticed that they have taken some of the plastic covering the "EASTLINK" signs .... soo its really close to opening! yay , yay and another yay! :) 25 mins to cbd anyone? :)

Viva EA$TLink!
 
Harris said:
I think Bludger is referring to a specific property on Kars St available for sale which is in a dip (sort of).

Kars St otherwise is a beautiful part of Frankston South.
Click to expand...

Spot on Harris. It's definitely not a well located property in my view. But perhaps it is to others...
 
I know Frankganastan is a good long term bet but walking near the station at 8 oclock on Monday morning and witnessing the drug deals really puts me off....
pieman
 
If it is drugs area, you are not going to stay there right ? as long as number stacks up, and there are people paying rent (druggies ?) it will be good enough. i think one of the member here actually states that sometimes druggies are good tenant :)

By the time of rent increase, house pricing increase, those druggies will be driven out.

That is how i feel about this.

Anyone?
 
i resent that! ... there isnt more scuzz in fr.north than in fr.central .. maybe you should come live here for a week then your mind would change .... yes fr.north was full of scuzz .. but like with fr.central the scuzz is being priced out of the marked ...so scuzz will go somewhere else! ...

Yay!
 
Just for a bit of info, another property has come up in dell road accross the road from where a member here (cant remember who) bought for 345K. Its listed through hocking stuart (not on the website as yet) I beleive they want 340-360k. Property is an old fibro, not in as good condition as the one accross the road.

A property down the road 3 bundarra court sold in excess of 310k about a week ago through wentworths. It was only listed for a couple of days. That one was a knock down job and not really a development site due to a large tree that can not be removed and an sbo overlay which would require the floor to be fairly high of the ground. Also the block was not that big.

With the bulky goods development and the aquatic centre development that will be built at the nearby samaul sherlock reserve, this pocket is booming.
 
frankston - still cheap relative to 20 year melb historical median

Relative to the Melbourne median over the past twenty years or so, Frankston is still very cheap - there is a lot more capital gain to come with Eastlink and the probability of a marina within 5 years.

Let me qualify my own situation: I've personally bought over 20 houses in the frankston/north frankston/seaford areas in the last year. I've pushed a number of colleagues into buying more for themselves - collectively we own close to 50 old houses, mostly of brick veneer construction. I am looking for more houses for both myself and my colleagues.

Some of the bargains earlier last year were so irresistable I couldn't stop myself from going overboard. I'm hoping to buy houses on larger sites and may have to dump a few of the smaller ones to do this. I dont normally buy single residential sites but some of these were so cheap I could not help myself. I'm more than happy to exchange views and information with others so feel free to keep in contact. Tenants are a bit of a worry, had some bad problems with managers.

Dr Paul
 
wow... 20 houses x 27% rise = $$$$ ... very well done! ... i wished i had the muscle to pull that one off :)

but its good to know someone else sees the good in frankston ... but a bit of a worry with renters as they do not take care of your house the way you would if you owned it. but then again im pretty happy with my naighbours.

happy Australia Day!
 
Mini Perth in Frankston

wow, well done !!! 20 houses for 1 person from WA and collectively 50 houses, assume also from WA.... ha ha..It sounds like Mini Perth in Frankston Area.
 
newhigh said:
Tenants are a bit of a worry, had some bad problems with managers.

Dr Paul
Click to expand...

I would agree with you there! I have also had a less than satisfactory experience with tenants and property managers. I hope you keep a close eye on your rental payments with that many IP's in the area!

Good luck,

Regards Jason.
 
Hi Paul,
Good to hear from one of the Frankston investors' from WA !

Just out of curiosity, are you from the same consortium (of WA investor doctors) that was buying very aggressively in Frank in early - mid 2007..?

I believe you would have acquired most of the stock through a couple of local Buyers Agents'..?

I am quite interested in hearing about your rationale for investing in Frank and the reasons behind you / your consortium's decision on acquiring a very significant residential stock there.

What were your risk mitigation strategies in case you could not get the capital growth you had hoped for initially ..?

Where do you see the market heading with the changing horizon viz a viz stock market, US recession, etc

What parallels do you draw in comparing Frankston to another coastal area that might have delivered good growth for you in the past (if there is any)..?


Thanks

Harris
 
invitation to study

Happy Australia Day all. Thanks for the welcome. Lets comare notes and share information.

Relative to real local wages (adjusted for inflation) and to the broader Melbourne median over the last 20 years, Frankston is still incredibly cheap. Far from being at an all time high, it is actually at a secular low, this is a classic case of a suburb that is mispriced. And like Buffett, we all love mispricings!

I am an investor, I am not a salesman or advocate. My/our econometric modelling suggested we buy Frankston late in 2006. I arrived in North Frankston and was shocked. I had contracted to buy several houses sight unseen and the place looked a lot better from Google Earth. I was silent on the drive home to the city, thinking "what have i done, soem of the locals look dangerous" But finally I had faith in our research and went ahead and bought even more.

In real estate (as opposed to stocks) one should not argue with econometric modelling. Listen to the market: Like a doctor attending to an injured patient in the middle of a riot, ignore the noise and distraction around you and concentrate on the real work you need to urgently do.

Uninformed, self-interested real estate agents have destroyed more investors than war and pestilence. Totally disregard what they say unless they have been buying for their own portfolios recently with their own money. Few of the agents selling houses in Frankie are investors. It's much the same around Australia. This is an industry that is crying out for more regulation, not to mention talent.

I have met a very small minority of good agents. The rest have no loyalty to their clients and would sell their own grandmothers if they could. Most leave the industry after a few years. The same with a few cowboy conveyancers in the local area. Drunk on their own power or deluded by their ADHD, they may not have your best interests at heart. So do take the time to shop around for good people. And be aware that even good people change.....when they need some cash, some naughty agents may underquote to get a quick sale. So many battlers in North Frankie sold prematurely listening to slick, uninformed agents. It's always the vulnerable in society who suffer.

For me, it was the number crunching that attracted me to Frankie. All the other stuff you folks mentioned (marina, new highway etc) has been a sweet, happy, delightful bonus. Most of the North Frankie portfolio was bought for around $180k each, around 9 months ago. Rejected an offer of $256k for one last week as there is much, much more to come. This is just the beginning. Most of my stuff is in Frankston and also Seaford and more recently Carrum Downs. Should have bought more in North Frankston.

Folks do your own work, thats the best way to invest safely. Exchange info if you have something valuable to share. Of course, make disclosures if you have vested interests. Never never rely on what agents say unless they are buyers themselves. Tis the same with the minnows of the stock market - never listen to what the directors say, only pay attention when they are using their own cash to buy or sell stocks.

My pet project right now is to get some boffins working on mispriced property overseas. Belgium, Germany. Not the USA, not just yet. But soon.
 
harris

The local market is incredibly strong. We spent many hundreds of man hours studying the demographics, the econometrics, we carefully considered all the dynamics. Being far away made it better as we were not emotionally involved. Most folks pump up their own suburb because they've lived there all their lives. We chose Frankie based on solid macro studies. What is our back-up strategy? Well, we timed it precisely so we are sitting on good gains now.
We will be active in the local area for at least 3-5 years. And for longer with our lower maintenance OTPs.

Time is a great educator. I've lived through three recessions in Australia. I saw my parents return home each night ashen faced when interest rates hit almost 20%. It nearly broke them. But property prices kept rising because real wages were not falling. Each time people when people said that the end was nigh, it was usually time to get invested.

But don't get too carried away with property! Sometimes people go nutty and booms can end. Ireland (my opinion) is looking toppy, so too is Warsaw. Los Angeles and much of California is the same - came off a very low base and went totally crazy. Despite the TV news, not all of the USA is dead in the water....the oil and resource rich states are more than steady, even rising in parts. Never generalize. Never listen to others with vested interests (even me!). Go do the work, keep emotion out of it and keep the faith.
Frankie's got years ahead of it......its still cheap for a waterside suburb with marina potential. I'm still looking for low maintenance cheapies
 
Normally when there's a skip bin in the street, there's no one around.

And if you are attracted to it, you'd make sure there's no one looking.

But in central Franga, dumpster diving is de rigueur.

Sometimes it's even hard to get a spot around the bin.

Down there the locals see no shame and regard it as a social activity as this photo taken yesterday opposite MPRE proves!
 

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Spiderman said:
Normally when there's a skip bin in the street, there's no one around.

And if you are attracted to it, you'd make sure there's no one looking.

But in central Franga, dumpster diving is de rigueur.

Sometimes it's even hard to get a spot around the bin.

Down there the locals see no shame and regard it as a social activity as this photo taken yesterday opposite MPRE proves!
Click to expand...

so what exactly is your point :rolleyes:

a few people collecting/ scavenging a few useful items from a bin. Not much different to people collecting from kerbside. I also remember reading in one of your posts last year that you collected most of your household items (tv etc) from the nature strip? or was it another spiderman (wouldnt think there would be 2 identical names in Somersoft).

Central frankston doesnt have much of a nature strip, so there !
 
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