At least its not too serious, i wonder how they will fix it, and how much it will cost them !
Purchasing in VIC - Frankston Area
- Thread starter Cherry Pro
- Start date
hello,
regarding the marina, my understanding is at stand still in relation to the private players
the council has not approved any dry berthing at the marina and therefore private money is not looking at the proposal, the council does not want to run it
but private money doesnt want to if no dry berthing,
stumbling block is residents around dont want to look at dry berthing shed 2-3 storey's high
thanks
myla
regarding the marina, my understanding is at stand still in relation to the private players
the council has not approved any dry berthing at the marina and therefore private money is not looking at the proposal, the council does not want to run it
but private money doesnt want to if no dry berthing,
stumbling block is residents around dont want to look at dry berthing shed 2-3 storey's high
thanks
myla
I have been given differing versions as well regarding the stage it is in currently. The latest update on the council website indicates that the financial model has been agreed upon and construction should start Dec this year.
I spoke to a media contact within the council who confirmed the above as well. I spoke to a couple of developers in Frankston who mentioned that Oliver Hill’s action group against Marina have refused dry birthing arrangement and are threatening to delay the approval through multiple objections.
I am meeting the head honcho at the council re marina late this week and will give the update as soon as I have heard it directly from the horse’s mouth.
Harris
I spoke to a media contact within the council who confirmed the above as well. I spoke to a couple of developers in Frankston who mentioned that Oliver Hill’s action group against Marina have refused dry birthing arrangement and are threatening to delay the approval through multiple objections.
I am meeting the head honcho at the council re marina late this week and will give the update as soon as I have heard it directly from the horse’s mouth.
Harris
Frankston Marina Update
Update on Frankston Marina:
Had a detailed discussion with the Project manager of Frankston Marina.
Here are the details:
-As Myla pointed out the private sector was not looking at developing the marina in absence of dry berthing arrangements at the site.
-This has resulted in Frankston Council putting together their own set of recommendations to the State gov since the marina will be built on state/ crown land. The request with necessary changes (incorporating dry berthing) is sitting with the Planning minister for a final decision.
-The final decision from the planning minister is expected to be made late this month. Once that happens, the Council will then release final recommendations by July. The recommendations would be implemented (without any further public comments/ debate, since that process was already conducted over a 2 year period) almost immediately.
-Once the State gov response is made public (around July this year), then the EOI and tender process will start at-once which will be finalized by the end of this year.
-Successful private developer will then be assigned the project with construction starting mid next year and 18 month building period.
-The council has done its own research on the growth/ value addition that the marina will bring to Frankston and will also release that information together with State gov recommendations in July.
I have requested more info regarding the major projects in the pipeline and the changing demographics of the area. As soon as I have more info, I will post back.
Cheers
Harris
Update on Frankston Marina:
Had a detailed discussion with the Project manager of Frankston Marina.
Here are the details:
-As Myla pointed out the private sector was not looking at developing the marina in absence of dry berthing arrangements at the site.
-This has resulted in Frankston Council putting together their own set of recommendations to the State gov since the marina will be built on state/ crown land. The request with necessary changes (incorporating dry berthing) is sitting with the Planning minister for a final decision.
-The final decision from the planning minister is expected to be made late this month. Once that happens, the Council will then release final recommendations by July. The recommendations would be implemented (without any further public comments/ debate, since that process was already conducted over a 2 year period) almost immediately.
-Once the State gov response is made public (around July this year), then the EOI and tender process will start at-once which will be finalized by the end of this year.
-Successful private developer will then be assigned the project with construction starting mid next year and 18 month building period.
-The council has done its own research on the growth/ value addition that the marina will bring to Frankston and will also release that information together with State gov recommendations in July.
I have requested more info regarding the major projects in the pipeline and the changing demographics of the area. As soon as I have more info, I will post back.
Cheers
Harris
Last edited:
Frankston South - on steroids
I bought 32 Denbigh St Frankston South (3 unit site) early March for $420k - (only property in the street with clear bay views) - Rental appraisal of $350/ week - No easements
20 Denbigh St sold on 20 April for about $450k (slightly smaller block with easement running through the property)
48 Denbigh St again on simialr sized block sold for $448 on 25 April
16 Denbigh St - exactly similar sized block to 32 Denbigh (very ordinary 2 bed weatherboard house) fecthing $190/week rent sold today inside 2 hours for $470k on 60 day settlement.
My agent from MPRE called me to ask if I wanted to sell my block for $490k to a Perth buyer who will do an unconditional contract with 30 day settlement.
That represents a 16% increase inside 3 months for my purchase...!
I have not seen such activity levels in any other suburbs in my investing career (although admit that I am not following the very buoyant inner melbourne property market which might be as good/ better than Frankston currently) - The closest that I can think of is Rockhampton that did really take off almost immdeiately after Seechange posted his detailed thread on the market there. Having said that, one could obtain over 8% yields easily back then in Rocky (which have dropped down to almost 4% now).
Regards
Harris
I bought 32 Denbigh St Frankston South (3 unit site) early March for $420k - (only property in the street with clear bay views) - Rental appraisal of $350/ week - No easements
20 Denbigh St sold on 20 April for about $450k (slightly smaller block with easement running through the property)
48 Denbigh St again on simialr sized block sold for $448 on 25 April
16 Denbigh St - exactly similar sized block to 32 Denbigh (very ordinary 2 bed weatherboard house) fecthing $190/week rent sold today inside 2 hours for $470k on 60 day settlement.
My agent from MPRE called me to ask if I wanted to sell my block for $490k to a Perth buyer who will do an unconditional contract with 30 day settlement.
That represents a 16% increase inside 3 months for my purchase...!
I have not seen such activity levels in any other suburbs in my investing career (although admit that I am not following the very buoyant inner melbourne property market which might be as good/ better than Frankston currently) - The closest that I can think of is Rockhampton that did really take off almost immdeiately after Seechange posted his detailed thread on the market there. Having said that, one could obtain over 8% yields easily back then in Rocky (which have dropped down to almost 4% now).
Regards
Harris
Cheers Harris..Your info. is great value. Keep it coming it is greatly appreciated. I have been watching the frankston south/seaford area for a while now and look to be buying there soon.
once again cheers
once again cheers
16 Denbigh St actually sold for $474k yesterday, not $470k
just spoke to the listing agent (for above property) in detail for MPRE (who also owns 3 MPRE agencies in the area) and got some more interesting facts about the market which I will verify through other agents and post back.
The average selling time for a property through their agency is a week (down from 9 weeks this time last year) currently and he mentioned that its getting shorter by the week due to overwhelming demand.
Lately, Sydney buyers are buying almost equal amount of stock as Perth buyers and majority of the contracts are un-conditional now compared to over 90% of agreements with conditions late last year..!!
Whilst long settlements for anything more than $400k used to be very common, he thinks they are almost extinct now and only a seriously deranged vendor or an overly expensive development block can merit long settlement.
MPRE has over 90% of the listings currently as Private Sale which they are in the process to change to auction. He is spearheading the change that will see over 80% of the properties to be auctioned from next month due to the great results they obtained in their test run for auctioning properties.
Cheers
Harris
just spoke to the listing agent (for above property) in detail for MPRE (who also owns 3 MPRE agencies in the area) and got some more interesting facts about the market which I will verify through other agents and post back.
The average selling time for a property through their agency is a week (down from 9 weeks this time last year) currently and he mentioned that its getting shorter by the week due to overwhelming demand.
Lately, Sydney buyers are buying almost equal amount of stock as Perth buyers and majority of the contracts are un-conditional now compared to over 90% of agreements with conditions late last year..!!
Whilst long settlements for anything more than $400k used to be very common, he thinks they are almost extinct now and only a seriously deranged vendor or an overly expensive development block can merit long settlement.
MPRE has over 90% of the listings currently as Private Sale which they are in the process to change to auction. He is spearheading the change that will see over 80% of the properties to be auctioned from next month due to the great results they obtained in their test run for auctioning properties.
Cheers
Harris
This is really interesting information Harris. Thanks for this. In regard to auctions - will that include the whole the Frankston market or only Frankston South?
Regards Jason.
That will be all listings in Frank/ Fran Sth and Seaford.
Another auction today in Karingal by Barry Plant for a very ordinary 3 bed house (expected to sell for around $235k ) sold for $268k amongst very strong bidding. It needs a lot of work and according to agent represents a 20% increase in the price points for Karingal properties compared to March 07 pricing levels.
Will post the link tomorrow for the property.
Absolutely happy times for all Frank investors.
Harris
Another auction today in Karingal by Barry Plant for a very ordinary 3 bed house (expected to sell for around $235k ) sold for $268k amongst very strong bidding. It needs a lot of work and according to agent represents a 20% increase in the price points for Karingal properties compared to March 07 pricing levels.
Will post the link tomorrow for the property.
Absolutely happy times for all Frank investors.
Harris
Last edited:
Karingal - on a rocket !
39 Santa Brabara Drive Frankston (Karingal area)
http://www.realestate.com.au/cgi-bi...eader=&c=18699242&s=vic&snf=ras&tm=1181436438
571 sqm (much smaller than average block size in Karingal) - un-even block - unmaintained exterior and interior - Needs heaps of new work inc floor coverings, ducted heating, leaking bath needs fixing), new paint etc before it can be brought into half decent state to be put on rental register.
Listing agent said he was surprised since he thought the vendors wanted an overly optimistic reserve of $230-$235k.
80 people attended the auction yesterday (according to the agent) - 6 bidders - expected to fetch $230k - sold for $268k.
He has decided not to take any further offers on any properties and take all stock to auction.
Spoke to half a dozen other agents, and the consensus is that in the last 3 - 4 weeks, the price points have taken a giant leap forward (this had to happen based on very very high activity driven market conditions) - Prices have finally starting creeping up very quickly now off the back of unprecedented activity levels)
Harris
39 Santa Brabara Drive Frankston (Karingal area)
http://www.realestate.com.au/cgi-bi...eader=&c=18699242&s=vic&snf=ras&tm=1181436438
571 sqm (much smaller than average block size in Karingal) - un-even block - unmaintained exterior and interior - Needs heaps of new work inc floor coverings, ducted heating, leaking bath needs fixing), new paint etc before it can be brought into half decent state to be put on rental register.
Listing agent said he was surprised since he thought the vendors wanted an overly optimistic reserve of $230-$235k.
80 people attended the auction yesterday (according to the agent) - 6 bidders - expected to fetch $230k - sold for $268k.
He has decided not to take any further offers on any properties and take all stock to auction.
Spoke to half a dozen other agents, and the consensus is that in the last 3 - 4 weeks, the price points have taken a giant leap forward (this had to happen based on very very high activity driven market conditions) - Prices have finally starting creeping up very quickly now off the back of unprecedented activity levels)
Harris
11 Ebdale St Frankston sold 70% above its reserve price yesterday.
Sold by Andrew Milne Real Estate in an auction. Only land value since the house is 100 years old and requires to be cleared.
Around 689sqm land - with a reserve of $190k - sold for $338k
Half a dozen bidders and over 50 people at the auction.
A large syndicate from Perth "vicland" apparently has picked up a number of sites within Frankston with development potential in the last 2 weeks (inc Denbigh St prop at full asking price).
I am told that the same group asked for more sites on Denbigh st, hence the offer for $490 for my block.
According to MPRE agent, a few buyers agents are very active and buying numerous properties for their clients. David McRae (Mcrae buyers agency) has picked up a few properties last week (from MPRE alone) on behalf of its clients.
Cheers
Harris
Sold by Andrew Milne Real Estate in an auction. Only land value since the house is 100 years old and requires to be cleared.
Around 689sqm land - with a reserve of $190k - sold for $338k
Half a dozen bidders and over 50 people at the auction.
A large syndicate from Perth "vicland" apparently has picked up a number of sites within Frankston with development potential in the last 2 weeks (inc Denbigh St prop at full asking price).
I am told that the same group asked for more sites on Denbigh st, hence the offer for $490 for my block.
According to MPRE agent, a few buyers agents are very active and buying numerous properties for their clients. David McRae (Mcrae buyers agency) has picked up a few properties last week (from MPRE alone) on behalf of its clients.
Cheers
Harris
Why do people prefer buying in large cities over smaller towns (not towns with 100 people, I mean places like Geelong, Ballarat, Albury-Wodonga, Bendigo)? I could take a few guesses why (e.g. more likely to stay vacant) but there seem to be lots of benefits too...So what do you guys think?
1. About 70% of IP investors (like the population generally) live in the big capitals and prefer buying something (i) in an area they know, and/or (ii) within commuting distance if anything needs doing
2. 95% of property journos, promotors, buyers agents, investment advisers, real estate institute spokespeople and other housing commentators either live in the big cities or assume everyone else does. Much of what passes for their commentary doesn't even cover the entire capital city - generally only the suburbs 10km encompassing only about 1/5 of all properties in the state. What gets in the statewide media is affected by this, even though the commentary may be irrelevant in the outer suburbs or country towns.
3. Charts have been produced showing that outer suburban (and especially) regional areas have long flat periods of no or little capital growth. In contrast it is often stated that desirable suburbs of capital cities have higher and more consistent growth. There is also a view that small cities are more vulnurable to economic shocks (eg Geelong took longer to recover than Melbourne's inner suburbs after the 1990s recession).
4. Where we are in the property cycle & rental yields. Unlike 2001, country properties aren't that much cheaper than those in Melbourne's outer suburbs. In 2007 if you lived in Melbourne why would you buy country when outer suburbs <40km from the CBD cost no more and often less. Also regional/metro rental yields are within a percent or two. Hence the lower purchase price and cashflow advantages of country or regional investments are less compelling now.
Those are good points, but what if buying in a more regional area enables you to buy something that immediately has rent equal to to greater than what you have to put in yourself, enabling you to pay off the mortgage within 3-4 years?
Had a very busy weekend in Frankston collecting market intelligence on the ground. There is no doubt that Frank Nth has gone up more than 25% in the last 12 months whilst Karingal and central Frankston have increased 12-15% in the last 4 months alone (that’s me wearing the conservative hat). I would say that parts of central Frankston have increased >20% since Feb/Mar and it won’t be too hard to demonstrate considering prop selling for 70% above their reserve…!
Had the above cross checked/ verified by proprietors of 4 largest real estate agencies in Frankston as well as through at-least 10 other agents.
Whilst Denbigh St has shown an exorbitant amount of activity and huge price increases for identical sized development blocks through Private Sales, I am confident that new price records will be set when another block comes for auction in a few weeks time through Century 21 agency in the street.
Century 21 had >70 prop available for sale in March which has come down to less than 20 today.
Frank Sth has also been setting records for prices achieved and per unit site value for development blocks have gone up by around 10-15% in the last few months.
Harris
Had the above cross checked/ verified by proprietors of 4 largest real estate agencies in Frankston as well as through at-least 10 other agents.
Whilst Denbigh St has shown an exorbitant amount of activity and huge price increases for identical sized development blocks through Private Sales, I am confident that new price records will be set when another block comes for auction in a few weeks time through Century 21 agency in the street.
Century 21 had >70 prop available for sale in March which has come down to less than 20 today.
Frank Sth has also been setting records for prices achieved and per unit site value for development blocks have gone up by around 10-15% in the last few months.
Harris
I have limited my research to Frank Nth/ Frank and Frank Sth.
I did look at Seaford closely a couple of months ago and realised that it had gone through a significant price increase from Dec last year to April this year and the price points for beachside prop of Nepean Hwy went up almost 15-20% within that period.
Similar increases were experienced in parts of Chelsea, Bonbeach and further north to Aspendale and Edithvale.
I have however not looked closely at the micro prop investment environment in Carrum Downs. On my way back from Frank yesterday, I decided to travel via Dandenong on my way home and looked around Carrum Downs. My initial impression was that there was significant land available there and hence scarcity value might not be as acute as Frank/ Seaford. That might be industrial part of Carrum Downs (along Frankston-Dandenong road) and residential prop market might still be tight.
I think its relatively easy doing research to guauge the activity levels for a suburb and then comparing price points/ auction results over a set time frame and talking to a few agents.
Cheers
Harris
I did look at Seaford closely a couple of months ago and realised that it had gone through a significant price increase from Dec last year to April this year and the price points for beachside prop of Nepean Hwy went up almost 15-20% within that period.
Similar increases were experienced in parts of Chelsea, Bonbeach and further north to Aspendale and Edithvale.
I have however not looked closely at the micro prop investment environment in Carrum Downs. On my way back from Frank yesterday, I decided to travel via Dandenong on my way home and looked around Carrum Downs. My initial impression was that there was significant land available there and hence scarcity value might not be as acute as Frank/ Seaford. That might be industrial part of Carrum Downs (along Frankston-Dandenong road) and residential prop market might still be tight.
I think its relatively easy doing research to guauge the activity levels for a suburb and then comparing price points/ auction results over a set time frame and talking to a few agents.
Cheers
Harris
G'day Harris. Thanks for reporting back from 'the field'.
Any idea if this growth is making it's way over to Carrum Downs?
