prices really getting up there in frankston huh !
Purchasing in VIC - Frankston Area
- Thread starter Cherry Pro
- Start date
Toni
I Moved to the Frankston South area 7 years ago. Two years later, we purchased two investment properties, One in Kars Street and one in Summit Road. At the time, I told the agent I would double my money in twelve months. (Kars Street I bought for $155,000 and Summit Road, $132,000). The agent laughed and said it would never happen in Frankston.
My friends laughed as well, they wanted to invest in Footscray. 12 months later to the day, I had done what they all said couldn't be done. Frankston is a bayside suburb. Developers are going crazy here! Developers do not buy into a suburb for no reason.
I have since bought another 3 properties and some 8 more for other people. I love the area and the financial independence it has given me and my family. It is still extremely undervalued for what it has to offer. We have Monash University, A Tafe College and it is the only major city between Melbourne and Portsea.
Harris, I would very much like to be kept informed about the marina. I believe it will have a major impact on Frankston. Also are you aware of how the 5 star motel is progressing.
Marylands estate is an iteresting part of Frankston. The homes are much nicer and larger than karingal and it is located accross the road from Karingal Shopping centre. It has always been a pocket that I have liked. What are your thoughts?
I Moved to the Frankston South area 7 years ago. Two years later, we purchased two investment properties, One in Kars Street and one in Summit Road. At the time, I told the agent I would double my money in twelve months. (Kars Street I bought for $155,000 and Summit Road, $132,000). The agent laughed and said it would never happen in Frankston.
My friends laughed as well, they wanted to invest in Footscray. 12 months later to the day, I had done what they all said couldn't be done. Frankston is a bayside suburb. Developers are going crazy here! Developers do not buy into a suburb for no reason.
I have since bought another 3 properties and some 8 more for other people. I love the area and the financial independence it has given me and my family. It is still extremely undervalued for what it has to offer. We have Monash University, A Tafe College and it is the only major city between Melbourne and Portsea.
Harris, I would very much like to be kept informed about the marina. I believe it will have a major impact on Frankston. Also are you aware of how the 5 star motel is progressing.
Marylands estate is an iteresting part of Frankston. The homes are much nicer and larger than karingal and it is located accross the road from Karingal Shopping centre. It has always been a pocket that I have liked. What are your thoughts?
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Interested to hear about how you managed to double your 2 prop within 12 months... The area moved about 25% that year (2002), so did you build or renovated those prop..?
Are you a buyer's agent..?
Harris
Reply to Harris
I bought a run down Red Clinka in Summit Road. No one wanted it. It was overgrown with shrubs. Red bricks scattered unevenly on the drive way. The smell of the house could be smelt by the neighbours. It had an old fashioned garden glass front as an entrance. The carpet was black and the curtains were a green velvet that had turned grey through neglect.
It was a tenanted property. I could see the potential that no one else seemed to be able to see. I made an offer of $132,000 and it was accepted. I pulled up the carpets, drycleaned the curtains, removed the wall papers (3 layers) from each room, polished the floor boards, painted the inside, then removed the scattered red clinka bricks from the drive way, bull dozed the front, made a pretty red clinka path to the front door, put down a crushed rock driveway in, put up a pretty picket fence and painted the whole of the outside in indian red and creme (heritage colours), removed the ugly glass front and put a timber post in to bring it in line with the theme.
Within twelve months I sold the property for $240,000.
The Kars Street property, I was in the right place at the right time and bought right. I bought at $155,000 and sold twelve months later for $262,000
Not quite double, but not bad for 12 months work. I was literally on the phone to the agents every day and this property had just got listed. I was on the bottom of the list to call back, but because I rang, was the second person to be shown through the property.
These properties were well and truely positively geared and really should have bought more. I went against every one and their opinion of Frankston and came out laughing. Then all my friends and family started wanting in.
I bought a run down Red Clinka in Summit Road. No one wanted it. It was overgrown with shrubs. Red bricks scattered unevenly on the drive way. The smell of the house could be smelt by the neighbours. It had an old fashioned garden glass front as an entrance. The carpet was black and the curtains were a green velvet that had turned grey through neglect.
It was a tenanted property. I could see the potential that no one else seemed to be able to see. I made an offer of $132,000 and it was accepted. I pulled up the carpets, drycleaned the curtains, removed the wall papers (3 layers) from each room, polished the floor boards, painted the inside, then removed the scattered red clinka bricks from the drive way, bull dozed the front, made a pretty red clinka path to the front door, put down a crushed rock driveway in, put up a pretty picket fence and painted the whole of the outside in indian red and creme (heritage colours), removed the ugly glass front and put a timber post in to bring it in line with the theme.
Within twelve months I sold the property for $240,000.
The Kars Street property, I was in the right place at the right time and bought right. I bought at $155,000 and sold twelve months later for $262,000
Not quite double, but not bad for 12 months work. I was literally on the phone to the agents every day and this property had just got listed. I was on the bottom of the list to call back, but because I rang, was the second person to be shown through the property.
These properties were well and truely positively geared and really should have bought more. I went against every one and their opinion of Frankston and came out laughing. Then all my friends and family started wanting in.
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Great short term CG Toni, well done...............but i must ask why did you sell when the frankston area is tipped to do well in the coming yrs.
I normally would hang onto a property for at least 5 - 10 years, but when you have a huge mortgage on your own house, it made more sence to me to first get rid of my own mortgage first.
I then bought two more properties; a three bedroom house in Frankston South, (high school zone) and a double storey, 5 bedroom home in Marylands Estate. I have held onto these (approx 5 years) and have rececently bought a 4 bedroom home in Blaxland, which I plan to hang onto.
I believe it is only a matter of time before this area booms and Frankston can once and for all shake off its undesireable image.
Eager to hear what you think of Maryland Estate! and wonder if you have heard anything new on the Marina!
I then bought two more properties; a three bedroom house in Frankston South, (high school zone) and a double storey, 5 bedroom home in Marylands Estate. I have held onto these (approx 5 years) and have rececently bought a 4 bedroom home in Blaxland, which I plan to hang onto.
I believe it is only a matter of time before this area booms and Frankston can once and for all shake off its undesireable image.
Eager to hear what you think of Maryland Estate! and wonder if you have heard anything new on the Marina!
When I initially bought and sold in Frankston, no one was talking about it. I went against everyone and thankfully believed in it so much that I bought in again.
Frankston has everything that a major city has to offer as well as the beach, yet it was and still is to a certain extent, being overlooked. Thankfully developers are now realising its potential and I believe it is going to make a complete u turn.
I am very excited about Frankstons future.
Frankston has everything that a major city has to offer as well as the beach, yet it was and still is to a certain extent, being overlooked. Thankfully developers are now realising its potential and I believe it is going to make a complete u turn.
I am very excited about Frankstons future.
Frankston Update:
It’s the 13th of the month again and the activity level seems to be still very high.
Frankston:
74 prop sold for 200 prop listed (not including many that are sold but don’t appear as sold)
Frankston North:
16 prop sold for 23 prop listed (severe demand)
Frankston South
51 prop sold for 163 prop listed
Price points
Biggest % rise in values in Frankston North, where average selling price is around $225k now versus under $180 earlier this year.
Whilst earlier in the year, the values were creeping up for Frank Nth, central & Karingal quite dramatically, the growth over the last 3-4 months has been well spread across all parts of Frankston.
A 1300 sqm block on Esplanade (near the corner of Nolan St) sold in March this year for $1mill through MPRE is back in the market with asking price of $1.6 mill. Bank re-valued the block at $1.2 mill in June. No doubt, the seller is asking ridiculously high price however this is the sign of things to come at the premium end of the market.
The average value of a prop selling in Karingal has moved up to $260k in today’s market – up about 15% from earlier this year.
16 Mooroduc Rd Frankston South (located off the main road) sold for $402k in auction this Sat, expected to fetch around $310k through Andrew Milne Real Estate.
A 2 bed unit in No 15 Foote St sold for $165k in May. Next one sold in the same building for $190k in July and a third one now at $199k asking price.
Almost all real estate agents are still acutely short of new listings and the consensus amongst all of them seems to be that the demand is creating severe pressure on values and the next quarter median values for reiv should reflect the consistent upward price point movement.
My personal educated opinion is that the next quarter (Sep07) reiv figures for Frankston Nth will come up in excess of $225k (up from June 07 $200k) and $265k for Frankston (up from $250k currently).
Harris
It’s the 13th of the month again and the activity level seems to be still very high.
Frankston:
74 prop sold for 200 prop listed (not including many that are sold but don’t appear as sold)
Frankston North:
16 prop sold for 23 prop listed (severe demand)
Frankston South
51 prop sold for 163 prop listed
Price points
Biggest % rise in values in Frankston North, where average selling price is around $225k now versus under $180 earlier this year.
Whilst earlier in the year, the values were creeping up for Frank Nth, central & Karingal quite dramatically, the growth over the last 3-4 months has been well spread across all parts of Frankston.
A 1300 sqm block on Esplanade (near the corner of Nolan St) sold in March this year for $1mill through MPRE is back in the market with asking price of $1.6 mill. Bank re-valued the block at $1.2 mill in June. No doubt, the seller is asking ridiculously high price however this is the sign of things to come at the premium end of the market.
The average value of a prop selling in Karingal has moved up to $260k in today’s market – up about 15% from earlier this year.
16 Mooroduc Rd Frankston South (located off the main road) sold for $402k in auction this Sat, expected to fetch around $310k through Andrew Milne Real Estate.
A 2 bed unit in No 15 Foote St sold for $165k in May. Next one sold in the same building for $190k in July and a third one now at $199k asking price.
Almost all real estate agents are still acutely short of new listings and the consensus amongst all of them seems to be that the demand is creating severe pressure on values and the next quarter median values for reiv should reflect the consistent upward price point movement.
My personal educated opinion is that the next quarter (Sep07) reiv figures for Frankston Nth will come up in excess of $225k (up from June 07 $200k) and $265k for Frankston (up from $250k currently).
Harris
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Frankston Area
I have been enjoying this thread and appreciate all feedback provided so far.
I believe along with many others that Frankston provides great value at the moment with great capital appreciation along with a pretty good yield of around 4.5 - 5%. I have focussed my energies in the last couple of months in Karingal where I have purchased 2 homes that have already shown good growth in the last 3 months. I am basing this on my comparison with similar properies that are selling at a premium of $20-30K today after such a short time.
I attended an auction at 40 Kashmir Dve in Karingal on Saturday which was auctioned by MPRE. There were approx 8-10 agents at the auction so it is clear that they are scoping the market r/e the success of the auction system. The house sold for $235K on a 620m/2 block, and I would describe the interior of the home as almost 3rd world. Doors/walls bashed in, a swimming pool with no water but full of Junk. I estimated that you would need to spend approx $60K plus to bring up to speed, however this would be like peeling an onion AS THE COSTS COULD GROW EVEN MORE.
Anyway this auction demonstrated to me the desperation of some buyers to enter the market without real perception of value. I clearly believe this will only continue which as an investor is great news.
My question to Harris is r/e the Frankston Marina. Have you heard any news in this area. Your feedback would be appreciated.
Matt
I have been enjoying this thread and appreciate all feedback provided so far.
I believe along with many others that Frankston provides great value at the moment with great capital appreciation along with a pretty good yield of around 4.5 - 5%. I have focussed my energies in the last couple of months in Karingal where I have purchased 2 homes that have already shown good growth in the last 3 months. I am basing this on my comparison with similar properies that are selling at a premium of $20-30K today after such a short time.
I attended an auction at 40 Kashmir Dve in Karingal on Saturday which was auctioned by MPRE. There were approx 8-10 agents at the auction so it is clear that they are scoping the market r/e the success of the auction system. The house sold for $235K on a 620m/2 block, and I would describe the interior of the home as almost 3rd world. Doors/walls bashed in, a swimming pool with no water but full of Junk. I estimated that you would need to spend approx $60K plus to bring up to speed, however this would be like peeling an onion AS THE COSTS COULD GROW EVEN MORE.
Anyway this auction demonstrated to me the desperation of some buyers to enter the market without real perception of value. I clearly believe this will only continue which as an investor is great news.
My question to Harris is r/e the Frankston Marina. Have you heard any news in this area. Your feedback would be appreciated.
Matt
Re: Marina Dont hold your breath for it, it is not a feasable project, who will pay for it is the 50 million dollar question. It would benefit frankston, but frankston doesnt need it to continue to thrive and rise in value, there are some more works to continue on the foreshore near the lifesaving club to be commencing soon though. Harris if you were told it will start by the end of the year im afraid you were lied to.
G'day Gussman,
I have spoken to and met Project Manager for Frankston Marina a number of times. It is still on. I have posted details of my discussions with the Project Manager of Frankston marina in this thread. Planning dept of the State gov has finalised their decision regarding providing subsidy (or not) to private sector in absence of dry berthing on the new marina. The decision is with the council and will be announced soon.
The second alternative is a reduced dry berthing facility which is getting thumbs up - again with state gov using the funds to subsidise the first phase of constructiuon and then private sector taking care of the rest.
I agree with you that Frank does not necessarily need the marina to thrive. It will be a good-to-have feature.
I have not had any updates in the last couple of weeks and will post as soon as I get more info.
Harris
The mayor and other councillors have concerns over the marina, unless we get a change in council and change in state government I can not see it going ahead. Without the dry stack it will not be feasible, some of frankstons most powerful and wealthy people are against the marina. The problem is only the opponents voices are heard. As ratepayers you should lobby your councillors and mayor, and state member for parliment because ultimately they have to approve these things before they go ahead, no matter how determined the council staff are to make make it a reality.
Development Opportunity
Hello All,
My current question is that I have the ability to purchase a block of land in Central Frankston in the Orwil St area which is 572m/2 with approvals from council to build 2 double story units with a single garage and one more car space, with a sell price of $150K. Each unit is 16.5 squares including the garage and from what I can gather would sell for approx $300k minimum each once constructed.
The only catch is that this block is behind a current home which sits on the front 350-400m/2 of the total block.(Total block is approx 950m/2) A common driveway needs to be constructed along with an old timber home needing to be demolished on the rear part of the block which is for sale.
I have never been down the avenue of looking to develop a site however this opportunity has arisen and in my eyes with the position etc, represents huge value. I am requesting a section 32 immediatly so I can move and make a decision.
Your feedback/comments etc would be appreciated as on the surface this looks to be a great opportunity.
Matt
Hello All,
My current question is that I have the ability to purchase a block of land in Central Frankston in the Orwil St area which is 572m/2 with approvals from council to build 2 double story units with a single garage and one more car space, with a sell price of $150K. Each unit is 16.5 squares including the garage and from what I can gather would sell for approx $300k minimum each once constructed.
The only catch is that this block is behind a current home which sits on the front 350-400m/2 of the total block.(Total block is approx 950m/2) A common driveway needs to be constructed along with an old timber home needing to be demolished on the rear part of the block which is for sale.
I have never been down the avenue of looking to develop a site however this opportunity has arisen and in my eyes with the position etc, represents huge value. I am requesting a section 32 immediatly so I can move and make a decision.
Your feedback/comments etc would be appreciated as on the surface this looks to be a great opportunity.
Matt
Latest Frankston marina update
Spoke to the Project Manager for Frankston Marina this afternoon.
State gov (planning dept) has made the decision and council will be apprised of it inside the next 2 weeks.
Council aims to issue a news bulletin during the first week of Sep announcing the State gov decision.
He sees the project as a “goer” and believes that following are the timelines in light of latest developments:
1- Frankston council to announce the decision early Sep (that the project is to go ahead) off the back of State gov recommendations/ decision along with the details involving subsidies.
2- Council will then complete necessary planning changes to incorporate additional facilities and with latest changes (as would be suggested by the State gov to make it feasible).
3- EOI & tendering process to start Dec/ Jan and contract awarded to the successful entity by June 08.
4- The successful bidder to finalise the marina design and get the approval to go ahead by Nov/ Dec next year.
5- Construction for marina to begin in earnest after that with the project construction time frame of 18 months and marina operating within 18 months of the project start.
The Mayor has some concerns about the project, however the overwhelming majority of the councilors has recommended it, hence the Mayor has publicly acknowledged backing the majority decision and he is not looked at as being an impediment to the project.
So, it sounds like the Frankston Marina project is happening (95% probability, based on the above). The announcement in Sep will also address the issue of dry berthing.
Cheers
Harris
Spoke to the Project Manager for Frankston Marina this afternoon.
State gov (planning dept) has made the decision and council will be apprised of it inside the next 2 weeks.
Council aims to issue a news bulletin during the first week of Sep announcing the State gov decision.
He sees the project as a “goer” and believes that following are the timelines in light of latest developments:
1- Frankston council to announce the decision early Sep (that the project is to go ahead) off the back of State gov recommendations/ decision along with the details involving subsidies.
2- Council will then complete necessary planning changes to incorporate additional facilities and with latest changes (as would be suggested by the State gov to make it feasible).
3- EOI & tendering process to start Dec/ Jan and contract awarded to the successful entity by June 08.
4- The successful bidder to finalise the marina design and get the approval to go ahead by Nov/ Dec next year.
5- Construction for marina to begin in earnest after that with the project construction time frame of 18 months and marina operating within 18 months of the project start.
The Mayor has some concerns about the project, however the overwhelming majority of the councilors has recommended it, hence the Mayor has publicly acknowledged backing the majority decision and he is not looked at as being an impediment to the project.
So, it sounds like the Frankston Marina project is happening (95% probability, based on the above). The announcement in Sep will also address the issue of dry berthing.
Cheers
Harris
