Purchasing in VIC - Frankston Area
- Thread starter Cherry Pro
- Start date
Each to their own. Personally, after living in a beachside suburb, I couldn't live anywhere else. I love Frankston and all it has to offer. I live and invest here and believe it is very undervalued.
Serious investors are not swayed by the image of an area, they look at the overall demographics of an area, location, future/current developments and any other determining factors that may add or detract to and/or from the area's future financial growth.
Generally speaking when developers start developing an area, such as Frankston, there are good reasons behind their decision.
We are all on our own journey and we need to make the right decisions for ourselves.
I wish you well with your highett investment.
Toni
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I would too mate if I could get 6% + yields in highett
I remember too well when Highett had a reputation worse than Frankston when I briefly lived in Brighton east in mid nineties...
Highett's last 10 years (even 20 years) long term growth year on year is less than Frankston's, so if you did buy 1 highett over 3 in frankston today, you would not only get less rental yields, the growth would be similar in worst case or Franskton leaps and bounds ahead in best case sceanrio.. TIMES 3 .
There are very few suburbs that have (i) railway, (ii) bay, (iii) proximity to private schools, large shopping centre within a few kilometres. Three, yes, but not four.
Even 'top shelf' suburbs miss out. Eg Brighton (no large shopping centre), Camberwell (far from the bay), Templestowe (limited transport).
But Highett is one of the few suburbs that has all four close by. Its biggest selling point is the concentration of private schools at Mentone - there's only a few areas (eg Essendon, Kew-Malvern axis) that would match or exceed it. Southland is just metres away and even the bay is a few minutes drive or train trip.
If Highett has underperformed, maybe it's because it, like Blackburn has a high aged population. As they die the supply of homes for sale may be higher than would be expected.
However it has all the ingredients to be a top performer, attracting high income families (in particular), especially given that Bentleigh and McKinnon are becoming less affordable.
Hence I see nothing wrong with either Highett or Frankston.
From the centre of Highett, the beach is 3.6 kms away.. and from the closest possible point, its over 2 kms...! I wouldn't consider Highett as beachside (not in the sense you would classify Brighton, Chelsea or frankston).
Sorry to be pedantic, however lets call the suburbs that border the coast as beachside... Any extensions to that definition and we have a can worm of arguments for multiple suburbs being classified as "beachside".
I was only referring to the "perception debate". On the perception argument, Highett had much worse reputation than Frankston back then, since I lived close to Highett (Brighton east) and travelled every day to Frankston (Monash Uni).
Harris
Frankston has all of this... At the end of Humphries Road, Frankston South, over the Nepean Hwy is Toorak College, Minimbah (junior campus to Woodleigh school), Woodleigh School and 5 min. down the road from us is The Peninsula School, not to mention the numerous catholic and christian schools which are close by, Monash University and the Tafe college. Large shopping centres, cinema outlets, nightlife venues, beachside restaurants, all of which are expected to expand even more in the coming years.
Also Hailebury college is 20 min. away. AND we have Transport.
This is not to say that Highett is not a great suburb, it is for its own reasons, but in lots of ways its price does reflect that. Frankston for all it has to offer is under priced and I believe that is why developers have and are buying in here.
When the ring road has been completed and we are alot more accessible to other areas and the city, I believe major changes are going to take place here as people start to realise how great this suburb is. We have alot at our doorstep that most suburbs just don't have, including the wineries and great golf courses.
I LOVE Frankston...
Toni
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Me too! 
I'm currently looking at buying an IP in South Frankston, more towards Mt Eliza. Asking price is about $500K and rental is about $400 per week(or at least this is what the RE told me). It's a really nice home inside, maybe too nice for renters.
What's the sort of demand from a rental perspective on "nice" properties like this in South Frankston that range say from $400-$450 per week? Is it difficult to rent these sorts of homes out and what sort of people would be renting in this area?
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Could have, should have, but didn't - The Bludger.
What's the sort of demand from a rental perspective on "nice" properties like this in South Frankston that range say from $400-$450 per week? Is it difficult to rent these sorts of homes out and what sort of people would be renting in this area?
__________________
Could have, should have, but didn't - The Bludger.
Higher end rentals in frankston can take a bit of time to get rented, however with one of my development blocks (with a 6 bedroom hosue and bay views near the corner of Esplanade) got rented straight away for $440pw - Once it is rented, you should not have ongoing issues with tenants as you would expect in the $200-$300 pw bracket tenants.
I would think that you would have professionals/ business owners with decent income renting that place. I would try to reduce the asking rental a bit with a view to getting an 18 or 24 months tenancy for SANF (sleep at night factor).
That property would also appeal to people renovating/ building their house around Mt Eliza (a lot of construction activity happening there too) so they might want to rent it for 12 months or thereabouts before their project is finished.
Good luck
Harris
Thanks for the info Harris.
Toni, yes, it's close to the border. It's just in from Humphreys road. On one side Nepean Hwy and the other Baden Powell drive. Why do you ask? Would this make it more rentable?
Also, is this pocket a good area to be investing as I'm not overly familiar with Frankston yet, I'm getting there, but still have a bit of homework to do.
Toni, yes, it's close to the border. It's just in from Humphreys road. On one side Nepean Hwy and the other Baden Powell drive. Why do you ask? Would this make it more rentable?
Also, is this pocket a good area to be investing as I'm not overly familiar with Frankston yet, I'm getting there, but still have a bit of homework to do.
I know the street you are talking about and you are definately in prime Frankston South. This is a Great Area, and yes, as it is a very sought after part of Frankston South, it is much easier to rent out.
Toni
Harris
how is the demand in renting your frankston properties, btw how many do you own?
When I look at "for rent" on realestate.com there is 19 pages as opposed to 4 pages for Highett. I know anything can rent if its cheap enough but can you tell me how long the average wait is? And you say yields are like 6%, would you mind shareing an example?
cheers
pieman
how is the demand in renting your frankston properties, btw how many do you own?
When I look at "for rent" on realestate.com there is 19 pages as opposed to 4 pages for Highett. I know anything can rent if its cheap enough but can you tell me how long the average wait is? And you say yields are like 6%, would you mind shareing an example?
cheers
pieman
We have discussed this many times in the frankston thread.. You might want to go through the thread to find your answers (including details of all of my purchases) at the start of the thread (early last year) followed by my subsequent additions of development blocks and some properties with 7% + rental returns that I bought last year.
Almost all of them were let straight away, some had a 2 week waiting period and the worst example had 3 weeks (however that is now on 18 months lease).
Highett is a tiny teeny suburb compared to Frankston (less than a quarter size of Frankston) and hence any comparison for number of prop available' sale/ rent is useless.
sure.. lets share 3 from my portfolio
** Wangarra Rd - Purchase price - $269,000 around June 07
$370 pw
** Royle St - Purch price - $249,000 around July 07
$340pw
** Ellis St - purch price - $300,000 around Feb 07
$360pw
All of the above are on market rental and leased for 12 months. I have also included details re how I went about finding those in the thread as well as details on many others and on the development blocks in Frank Sth.
Harris
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Following research article confirms what I have been trying to highlight with sales activity levels over the last year in comparing Frankston to other outer suburbs. Increased sales activity (in non auction dominated suburbs) creates pressure on demand and is the best barometer to ascertain if the market is moving.
Sustained levels of intense activity leads to shortage of available properties and results in values rocketing up within a very short time frame.
This year has started really well for Frankston's sales activity level and if this trend continues into Feb's auction season (all indications are that it will), we will see at-least a 10-15% increase in Frankston prop values well before June compared to now.
Harris
From REIV's website: http://www.reiv.com.au/news/details.asp?NewsID=613
High turnover and good capital growth
9-Dec-2007
Recently released REIV research has identified an interesting trend in the suburbs of Frankston, Sunbury, Rowville, Mornington, Reservoir, Berwick and Cranbourne. This trend has seen these suburbs dominate the list of highest turnover in the Melbourne housing market.
During the 2007 September quarter, the number of transactions in Frankston was 187, in Sunbury it was 142, in Rowville 138, Reservoir had 128 and Berwick recorded 118. With the exception of Cranbourne these suburbs recorded a higher level of turnover in 2007 than the same period last year.
Three of the suburbs stand out in relation to capital growth over the previous twelve months.
The median price in Frankston increased 19 per cent from $246,500 to $295,000, in Rowville it increased 21 per cent from $355,000 to $428,000 and in Reservoir the median price increased 24 per cent from $311,250 to $387,000. The combination of high turnover and price growth reflects the high levels of demand for homes in these suburbs. A reason for this market activity can be linked to the affordability factor that these suburbs offer as they all have a median price below the Melbourne metropolitan median.
When you consider that the median in the Melbourne metropolitan area increased 13 per cent from $381,000 to $431,000 over the 12 months (now $485,000) it is evident that property in these suburbs has been both affordable and a good investment.
Sustained levels of intense activity leads to shortage of available properties and results in values rocketing up within a very short time frame.
This year has started really well for Frankston's sales activity level and if this trend continues into Feb's auction season (all indications are that it will), we will see at-least a 10-15% increase in Frankston prop values well before June compared to now.
Harris
From REIV's website: http://www.reiv.com.au/news/details.asp?NewsID=613
High turnover and good capital growth
9-Dec-2007
Recently released REIV research has identified an interesting trend in the suburbs of Frankston, Sunbury, Rowville, Mornington, Reservoir, Berwick and Cranbourne. This trend has seen these suburbs dominate the list of highest turnover in the Melbourne housing market.
During the 2007 September quarter, the number of transactions in Frankston was 187, in Sunbury it was 142, in Rowville 138, Reservoir had 128 and Berwick recorded 118. With the exception of Cranbourne these suburbs recorded a higher level of turnover in 2007 than the same period last year.
Three of the suburbs stand out in relation to capital growth over the previous twelve months.
The median price in Frankston increased 19 per cent from $246,500 to $295,000, in Rowville it increased 21 per cent from $355,000 to $428,000 and in Reservoir the median price increased 24 per cent from $311,250 to $387,000. The combination of high turnover and price growth reflects the high levels of demand for homes in these suburbs. A reason for this market activity can be linked to the affordability factor that these suburbs offer as they all have a median price below the Melbourne metropolitan median.
When you consider that the median in the Melbourne metropolitan area increased 13 per cent from $381,000 to $431,000 over the 12 months (now $485,000) it is evident that property in these suburbs has been both affordable and a good investment.
