Yep I did East Link on Sunday and the traffic at Frankston end of the freeway was terrible
Purchasing in VIC - Frankston Area
- Thread starter Cherry Pro
- Start date
I've had my eye on Frankston for a while now. Seems the opening of Eastlink has done nothing for prop prices though. I believe most growth was delivered to that area based on the general growth that occurred every where else in Vic during 2007, and it being undervalued originally and not due to the opening of a freeway.
Does it take a while for people to appreciate the benefits of a major freeway and subsequently prices go up with time?
Also, I remember when WA investors came in and were regularly buying IP's by the dozen. I can only assume this will have a negative affect long term if an area is heavily invested in, as OO's do not want to live there. Didn't this happen to an area in Perth and prices crashed badly? Are there any stats on OO's vs Investors in Franga's?
My concern is too many investors, promises made by councils, but do not deliver(they have been talking about the marina for years but still nothing), the ferrals that live there(I was shocked to see so many people walking around with moccasins and bare foot) and traffic congestion at the end of the freeway.
On the upside, close to beach and facilities are good.
Does it take a while for people to appreciate the benefits of a major freeway and subsequently prices go up with time?
Also, I remember when WA investors came in and were regularly buying IP's by the dozen. I can only assume this will have a negative affect long term if an area is heavily invested in, as OO's do not want to live there. Didn't this happen to an area in Perth and prices crashed badly? Are there any stats on OO's vs Investors in Franga's?
My concern is too many investors, promises made by councils, but do not deliver(they have been talking about the marina for years but still nothing), the ferrals that live there(I was shocked to see so many people walking around with moccasins and bare foot) and traffic congestion at the end of the freeway.
On the upside, close to beach and facilities are good.
Hi The Bludger,
It can take up to two years after the completion of any major arterial before full price evaluation is known.
Frankston is an extremely large suburb and as such property prices can range from the low 200’s to the $1,000,000’s.
The fact remains that money is being spent here and developers don’t do that without good reason. We are also in the Governments 2030 growth corridor and yes, we are right on the beach etc. etc. (the list, as we all know goes on and on).
There are many developments, some happening now, some expected to start in the near future and then there’s the marina, a proposed development that has almost worn out even the most positive amongst us, but we have to rest in the fact that it has finally been placed in the hands of a Government Priority Panel, in an attempt to get the ball rolling as quickly as possible and unfortunately, this to is a process.
Going by Domain.com.au the percentages for home ownership verses tenanted dwellings are as follows:
Frankston
Fully Owned 41%
Purchasing 30%
Rented 23%
Melbourne
Fully Owned 43%
Purchasing 27%
Rented 24%
Twelve months to July 08
Long term trend for Houses 11.8% and Units 11.2%
We can argue about the types of people that may or may not walk the streets all we like, but as investors, it is far better to look at the facts. I personally don't see people running around in moccasins and bare feet, but maybe I'm not looking for them.
Toni
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Agreed Toni. No doubt it has potential, but I'm finding it hard to shake off that stigma. I recently purchased 12km's from the city, close to a train and tram and I paid what I'd be paying in the better parts of Franga's. I just feel I have more growth potential there ATM, but of course this can change.
With fuel prices out of control and a tolled freeway, plus it being 40km's from the city, I just feel as it has a few things going against it. Not to say I won't ever invest there, as I think the area itself is quite nice, especially along the beach.
Congratulations on your purchase. I suppose I have a passion for Frankston because it is a city in its own right and on the bay and in my own opinion undervalued. No one has a crystal ball and who knows what the outcome will be. Only time will tell.
Well done.
Toni
I'm sick of the ferral tennents in the Frankston area. I just inspected another unit and this one had a fluro light in the womans 5 year daughters cupboard growing a Marijuana plant. She didn't even bother to close the cupboard. Clothes everywhere and poo smeared all over the bathroom floor and toilet.
Out of about 10 places i've inspected in the $170-$250k range 9 have been ferrals.
Anyway, i'm starting to think about other areas now
Out of about 10 places i've inspected in the $170-$250k range 9 have been ferrals.
Anyway, i'm starting to think about other areas now
Property investment is not a sprint.. more like a marathon. Currently the investing climate is overwhelmed with all things doom and gloom and frankston is no different. Whilst it did pretty well during 2006 and 2007, 2008 has literally put a stop in the growth in resi prop across Aus. I have certainly not seen that leaner times in my investing career over the last 7 short years.
Those who invest in resi property should understand the importance of the cyclical natrure of property and should not expect continous growth simply based on the historical perfromance of any area.
Some of the comments made lately in the thread are quite interesting and reflective of the passive state of affairs in Frankston currently.
Activity is down, market is full of surplus stock and agents are chasing after the buyers (similar to how they chased property sellers in 2006 and 2007). That has put a dampener on the values and generally speaking values are down around 5-10% of their Sep/Oct 07 levels.
Rents on the other hand are reflective of the overall trend across the resi market and are marching up continously.
Frankston has a lower socio economic demographic and as a result attracts similar class of tenants. I have certainly had my reasonable share of the issues with 12 lot of tenants in Frank, Frank Sth and Frank Nth. I have spent literally hundred of hours over the last 18 months to sort issues out with tenants, however it is like managing any other business. Any business has day to day issues with its staff, clients, suppliers, internal systems, market conditions, competitors, cash flow, balance sheet and changing nature of forces outside the control of the business manager. That does not make the owners to throw in the towel and change the business simply beacuse the short term forecast looks gloomy. They instead consolidate and wait for situation to turn around and make sure there cash flow is protected and conserved.
This is the current challenge for all investors and should be managed with similar tact.
For the growth I have had across my Frankston portfolio, I am happy to put up with day to day tenant issues and so long as I have mitigation strategies in place (comprehensive insurance inc landlord insurance) and better property managers, I can outsource most of the risks associated with loss of rent/ income, damage to property etc.
As the yields are rising and interest rates supposedly close to its peak, the cycle is turning and when it does finally turn, I have no issues in believing that Frankston will be at the forefront of the renewed growth due to its high yields, proximity to beach, now completed eastlink and with the convergence of the developers changing the street scape and it is a matter of time before the upward cycle starts again.
Untill then, we need to be patient and work out strategies to maximise the rental returns.
Harris
Those who invest in resi property should understand the importance of the cyclical natrure of property and should not expect continous growth simply based on the historical perfromance of any area.
Some of the comments made lately in the thread are quite interesting and reflective of the passive state of affairs in Frankston currently.
Activity is down, market is full of surplus stock and agents are chasing after the buyers (similar to how they chased property sellers in 2006 and 2007). That has put a dampener on the values and generally speaking values are down around 5-10% of their Sep/Oct 07 levels.
Rents on the other hand are reflective of the overall trend across the resi market and are marching up continously.
Frankston has a lower socio economic demographic and as a result attracts similar class of tenants. I have certainly had my reasonable share of the issues with 12 lot of tenants in Frank, Frank Sth and Frank Nth. I have spent literally hundred of hours over the last 18 months to sort issues out with tenants, however it is like managing any other business. Any business has day to day issues with its staff, clients, suppliers, internal systems, market conditions, competitors, cash flow, balance sheet and changing nature of forces outside the control of the business manager. That does not make the owners to throw in the towel and change the business simply beacuse the short term forecast looks gloomy. They instead consolidate and wait for situation to turn around and make sure there cash flow is protected and conserved.
This is the current challenge for all investors and should be managed with similar tact.
For the growth I have had across my Frankston portfolio, I am happy to put up with day to day tenant issues and so long as I have mitigation strategies in place (comprehensive insurance inc landlord insurance) and better property managers, I can outsource most of the risks associated with loss of rent/ income, damage to property etc.
As the yields are rising and interest rates supposedly close to its peak, the cycle is turning and when it does finally turn, I have no issues in believing that Frankston will be at the forefront of the renewed growth due to its high yields, proximity to beach, now completed eastlink and with the convergence of the developers changing the street scape and it is a matter of time before the upward cycle starts again.
Untill then, we need to be patient and work out strategies to maximise the rental returns.
Harris
Yep, as usual, top post Harris. It's nice to get an unbiased opinion from somebody who invests in the area and tells it how it is.
Hows this for an idea, why not build a train line from Frankston to Dandenong down the centre of Frankston Dandenong Rd. You could put stations at Frankston, Frankston North, Carrum Downs, Sandhurst & Lyndhurst, Dandenong South, Dandenong.
With this Melbourne 2030 Transit Cities it would really connect things up.
Dandenong is now being called Melbournes second city or the Capital of the S/E so it makes sense to connect them so people can travel back and forth for work.
This is probably a stupid idea, i'll have another wine
With this Melbourne 2030 Transit Cities it would really connect things up.
Dandenong is now being called Melbournes second city or the Capital of the S/E so it makes sense to connect them so people can travel back and forth for work.
This is probably a stupid idea, i'll have another wine
Word of wisdom Harris. I for one, have not lost my enthusiasm for Frankston
and belief in its future potential. very soon I'll back on the market in ernest
for another IP in Frankston. I was very interested in a 940sqm property in
Kereela Rd and was hoping it to stay on market till september, but sold early
this month. Don't know the final price but believe it to be around $340-350K
with $30,000 renovations to do.
SS
and belief in its future potential. very soon I'll back on the market in ernest
for another IP in Frankston. I was very interested in a 940sqm property in
Kereela Rd and was hoping it to stay on market till september, but sold early
this month. Don't know the final price but believe it to be around $340-350K
with $30,000 renovations to do.
SS
http://www.transport.vic.gov.au/DOI...E6C139D04B890B9ECA2571F800182ECB?OpenDocument is the government's solution and was introduced earlier this year.
Cool, nice one!
I just got approved for another loan so now i can purchase my second ip really excited but at same time not sure where to purchase either frankston or langwarrin,
for the approved loan there is nothing really i can purchase in sth frankston
what are peoples takes on a langwarrin home -
3 bedroom home 1 bathroom, indoor/outdoor alfresco area, ducted heating, split system cooling.
280pw rent
255-285k worth looking at?
for the approved loan there is nothing really i can purchase in sth frankston
what are peoples takes on a langwarrin home -
3 bedroom home 1 bathroom, indoor/outdoor alfresco area, ducted heating, split system cooling.
280pw rent
255-285k worth looking at?
There's little transport out there and it's further from the beach.
For a renter either central Frankston or Karingal would be better.
