Purchasing in VIC - Frankston Area

long88 said:
Just a question to those people who are interested to answer...

i am looking for frankton atm the moment, in particular frankston south.

is this a correct time to buy ? (or would there be such a thing as a correct time ?)

i have seen prices on average frankston have gone up to around 310k, karingal is catching up to about 290k, and south frankton is 380k to 400k mark (all talking about 3 bedder), and in the golden triangle area (hill area, seperated by morooduc highway).

i am thinking how if south is around 400k now, could it more in the future ? (CG ??) or should just buy in the average frankston, and will be seeing a greater return ? (90k more of mortage).

obviously this is for investment, and will like to hold it for long time (approx 10 years).

any suggestion ?

thx
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Going by what Harris and others have reported, all parts of Frankston are doing really well and are expected to continue to do so. I really don't think it matters where you buy in Frankston and particularly considering it is a long term investment.

There is never a right time to invest, particularly when it's a long term investment. Getting in is half the battle. Look for affordability. I have noticed over the years that I have invested in Frankston that it's been the cheaper properties that have attracted the highest gains.

I was told many years ago by a very wealthy person who lived and worked in frankston - "bread and butter properties". This was how he made his money in frankston, well before people started to even look here. People can always aford the cheaper properties, but they can't always aford the more expensive ones.

If your budget permits, Frankston South will always do well because of its proximity to beach, tspt, shop and High School, but the whole of Frankston is doing well and is expected to continue to do so.

Toni
 
Thx toni,

Frankton south is a bit of strecth, and i am inclined to get somewhere near skye road where it is 80k less, and already found a couple where there owner want to rent back from us (wonder why ? probably because they cannot meet the repayment ? and selling now to lock in profit).

How about karingal area ? it seems like a lot of agent saying that it is bad area ? and better off with standard frankston ? and hence the house price difference ? like 20k more ?

For me it looks like the same, karingal houses looks a bit more newer, and i presume less maintenance ? and in regards to the people who lives there, as long as they are working, and they can pay the rent, who gives a s*** ? is this a bad attitude ?
 
long88 said:
Thx toni,

Frankton south is a bit of strecth, and i am inclined to get somewhere near skye road where it is 80k less, and already found a couple where there owner want to rent back from us (wonder why ? probably because they cannot meet the repayment ? and selling now to lock in profit).

How about karingal area ? it seems like a lot of agent saying that it is bad area ? and better off with standard frankston ? and hence the house price difference ? like 20k more ?

For me it looks like the same, karingal houses looks a bit more newer, and i presume less maintenance ? and in regards to the people who lives there, as long as they are working, and they can pay the rent, who gives a s*** ? is this a bad attitude ?
Click to expand...

I agree with you, as long as they are working and can afford the rent, then that is all that matters to me.

Karingal is a great area. It is next to the Karingal Hub shopping centre, the cinemas, restaurants, Ballam park and numerous schools. It will all do well. I have a property in Marylands estate accross the road from Karingal, but would definately invest in Karingal If I could afford to buy another one.

Don't listen to anyone. Rely on your own logic. Real Estates have told me all sorts of things over the years, but I never listened to them. I opened up to the map of Frankston, studied it and then invested according to my own logic and guess what? It paid off.

By the way, I scanned realestate.com.au and found a couple of 3 bd rm, 1 bth rm properties in Frankston High School Zone for around $359 one, in 15 Tristania (Pro-active), 56 Lawon Avenue (Barry Plant), 81 Sycamore Road (4 bd rm) MPRE, 4 Fulham Close (2bth rm) - Network 1 and 166 Kars Street (include rumpus and extra bthrm) $340-360 (Pro-active). This may or may not be of interest to you.

What ever you decide, make sure it is right for you.

Toni
 
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long88 said:
For me it looks like the same, karingal houses looks a bit more newer, and i presume less maintenance ? and in regards to the people who lives there, as long as they are working, and they can pay the rent, who gives a s*** ? is this a bad attitude ?
Click to expand...

Hi long88,

I have two IP's in Karingal. The location, in my opinion, is very attractive - close to the Hub, cinemas, parks, Schools, and only a short drive to the beach and Frankston Central.

I have had probems with tenants, but mainly due to mismanagement by a previous agent. Since I changed agents, and once one of the tenants was evicted, I have had a lot less trouble.

Still, occassionally the tenants in one IP fall behind with the rent. They have always caught up though. (More annoyance than anything else, as I know they will pay). The other IP has a new tenant in it now - just a couple of teething problems - eg stove breaking down, as well as hot water service. (Just annoying niggling things!). She is ahead with her rent.

My property manager did say to me that the Marylands attracts a different (better) type of tenant. So this may be worth keeping in mind.

But, I believe Karingal is an attractive area, with great amenities.

All the best with your decision.

P.S. I was going to sell my IP's a year ago, but Harris' fantastic posts made me reconsider. (Thankfully considering the huge rise in value over the past 12 months!).
 
jingo said:
Toony, do you mind expanding on your troubles with your IP's in Frankston? From what I read you are an advocate for Frankston, and I would be interested to hear of any 'problems'/'difficulties' you may have encountered.

I have two IP's in the area, so I am interested to learn of your experiences.

Regards Jason.
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Well I am an advocate for Frankston. I have NEVER had an issue with my Mentone properties over a period of 10 years compared to Frankston.

They have only been minor issues. Mainly late payment. Worse case was about 3 weeks rent still owing from my brothers ex-girlfriend. Claim now registered with Magistrates court. She is now in Qld somewhere.

I only have landlords insurance for property damage and personal liability. (Brain sore - cannot remember proper name). I have not insured for lost rent. So that suggests i am confident in Frankston.

However I dont like investing intersate. I feel hopeless not being able to look at the property while is its untenanted. Not ensuring its in a good condition for a tenant. My properties there have fairly old kitchens and bathrooms. How do you renovate from 5000kms away.

When i first bought my properties in Frankston there were many properties for rental. If this happens again, i can go to the rental office and ask how its going in person. They are more likely to push tenants in my direction than some dude interstate.

DAAJ

Having a 8 room house and renting it via a property manager in Frankston and living in Qld. Thats just a recipe for disaster in my mind. Gee i hope you have a patient property manager.
 
I do see that one you talking about and have been thinking about getting 2 in frankston, rather than 1 in frankton south.

One thing that i discover is generally around the hill, Agent classified that as frankton south (between foot st and mooroduc Hwy), although on the map it is still frankston. it think that is misleading. they should have listed that as frankston only, but on FHSZ.

Am i right here ? or is the agent correct ?

THX
 
long88 said:
I do see that one you talking about and have been thinking about getting 2 in frankston, rather than 1 in frankton south.

One thing that i discover is generally around the hill, Agent classified that as frankton south (between foot st and mooroduc Hwy), although on the map it is still frankston. it think that is misleading. they should have listed that as frankston only, but on FHSZ.

Am i right here ? or is the agent correct ?

THX
Click to expand...


Between Mooroduc Hwy to the beach is all considered Frankston South and attracts Frankston South prices, mainly because of the Frankstson High School zoning. Anything that side of the hwy down to Davies Road and obvioulsly up to some parts of Humphries Road.

What you are really looking for is Frankston High School zone (look at the Frankston High School website to clarify this further. If you can, avoid FHSZ across the hwy as this zoning is more vulnerable due to zoning changes and obviously less sought after.

Toni
 
Thought I'd share something funny.

My bank sent me a letter a while ago saying that the preapprovals I had for 2 properties in the Frankston area for up to $250k have now expired now that they are 18 months old.

I bought something inner instead. Still, I felt I needed the diversification after already having 100% of my portfolio in the area.
 
prices rising

I have spent the last few days searching frankston central and frankston south for a suitable IP only to find prices have increase so much since dec my pre approval is too low to move on anything I find, on average selling in 3 -5 days. i thought low 300's was reasonable but agent pushing me up to mid - high 3's:eek: are people still buying here?
 
i am still looking, and i think it is crazy now. i was wondering now with interest rate increase whether there will be less people snapping up property over there ? it just feels like people buying over there no need to come with the $$$ to buy the property. just sign the bloody paper !!

now to go frankston south, you have to come up with high 300 to low 400. this is what i discover as well.

i think the agents are doing their job very good there. when you make an offer less than 10% below asking price, they ask you to piss off, they only want to talk to you when it is as listed price.

Isn't that REIV itself suggest making a 20% below asking price for as starting point ?

anyway, still looking, might be too late to join the party here :)
 
Hi,

Obviously their is no shortage of buyers i had an offer the day after i put my property for sale.So i would say that this will continue for the rest of the year at least.My agent tells me that the buyers buy in multiple dwellings.And they are either interstate or developers and that stock is running out.

I would say that with all the activity around eastlink has a lot to do with it plus the increasing population growth.IMO

Dom :)
 
I am assuming Frankston may be one of those suburbs affected by mortgage belt. If so, you'd think more properties would come onto the market, thus slowing the market there somewhat, especially with the latest interest rate and another soon to follow. Would this be a fair assumption?

I am also tossing up whether I should invest in Franga, but I'm a little cautious at the moment.
 
Leader Newspaper - 5th February 2008

The dreams of buyers yearning to move into Frankston's most affluent suburb, Frankston South, have slipped further from their grasp

The median price for Frankston South houses in October, November and December last year soared to $450,000 up from $390,000 the previous quarter.

The 15.4 percent growth was the seventh highest for suburbs across metropolitan Melbourne in the December quarter.

Woodend was top with 23.4 per cent lift in its median the middle price among all transactions. Between July and September last year, the Frankston South median went the other way down from a peak of $395,000

Frankston South's stunning comeback was in the Real Estate Institute of Victoria Figures for suburbs with at least 30 sales in the December quarter.

But they did show Frankston South was not in metropolitan Melbourne's top 20 suburbs for growth throughout all 2007.

REIV December quarter medin rises included Skye ($282,000 to $295,000), Langwarrin ($316,000 to $322,000), Frankston ($295,000 to $303,000), Seaford ($326,000 to $345,000) and Carrum Downs ($262,000 to $275,000).

Sandhurst the suburb of golf, waterway and park lifestyle subdivision, sandhurst Club and Baxter and Frankston North were unlisted.

REIV described Carrum Downs, with a 5 per cent rise, as amoung Melbourne's 10 most affordable suburbs. Metropolitan Melbourne's house sale median rose 12.8 per cent

Toni
 
The_Bludger said:
I am assuming Frankston may be one of those suburbs affected by mortgage belt. If so, you'd think more properties would come onto the market, thus slowing the market there somewhat, especially with the latest interest rate and another soon to follow. Would this be a fair assumption?

I am also tossing up whether I should invest in Franga, but I'm a little cautious at the moment.
Click to expand...

Just a little info from domain.com.au

Frankston/Frankston South

41% - Fully Owned
30% - Purchasing
23% - Renting


Melbourne

43% - Fully Owned
27% - Purchasing
24% - Renting



Toni
 
bang for your buck

Skye is producing some new houses with alot of bang for your buck and about 50k lower than frankston, with any luck it will get a ripple from frankstons surge
 
Leader Newspaper 4-2-08

Why Surge Sustainable

A Real Estate agent believes galloping Frankston South property prices reflect a recent positive media exposure.

Manos Findikakis, of Eview Real Estate Partners, said experts had analysed Frankston property opportunities in the way experts looked at under-valued stock market shares.

Mr. Findikakis said Frankston South had the key ingredients of water, bay views, transport and major shopping and business precincts.

These reflected a suburb "undervalued for some time", he said.

Mr. Findikakis said Frankston was a rare place where a family could enter the first home buyer market, move up to the second and third family home and prestigious, large Frankston South properties, and finally downsize to a unit.

"(And they do) not have to change their 3199 postcode!- in short, buy a $250,000 home right up to a million-dollar home," he said.

He saw the Frankston South surge as sustainable because of soon-to-be completed EastLink works, the planned Kananook Creek redevelopment, a proposed marina, and more people from out of the region probably seeking a Frankston lifestyle.

John Condon, of buxton (Frankston), agreed Frankston South had much to offer, particularly with its beach, views and Frankston High School.

"However, all areas of Frankston have surged, even Frankston North," he said.

Frankston South's trend was sustainable because of traditionally low prices and capacity for increase.

"Frankston has a lot more to offer with the new cinemas, foreshore, restaurants."

Toni
 

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