Im thinking of buying an IP in frankston in the near future, I am happy with the prospects, and everyones feedback on it,
can anyone suggest how I go and research the suburb + some pointers, based o nthe fact that I live 1 hours+ drive away...... and I very rarely go through the area....
There are more pointers in this thread than you can poke a stick at ! I would suggest reading the thread again. Also visit the area a few times and get a feel of different parts of frankston.
Frankston is 3 times the size of an average suburb with hugely varying demographics and equally varying prop values from $180k prop to $2mill + prop.
I went to the eastlink branch in Chadstone shopping centre yesterday and was told that we can expect the official opening announcement date for the tollway within a few weeks.
Whilst we cant ignore the macro economic factors with the high interest rates and excess stock in the market, the fact is that the time from the eastlink opening to the preceding 6 odd months will see a great range of activity in the suburbs dotted along the tollway with most commentators agreeing upon frankston positioned as the biggest winner.
Increase in buyer activity will soak up excess stock and will create a new wave of pressure on the prop values. The size of buyer's pool determines the size of the growth. So the higher the activity, the higher the pressure on the prop values.
The median figures showed the growth in frankston in 2007 at around 20% however most of that growth (around 80%) occured in a 3-4 months period from around Feb/mar 07 till around July 07. That was the period in frankston, where majority of the stock was selling within a couple of days due to the convergence of investors in the area.
Thats how the spurts work in prop values. Inner melbourne experienced that over a lengthy 12 month period from Oct/ Nov 06 till about Oct/Nov 07.
Middle ring then followed off the back of affordability blues and had its 6-8 month spurt lasting from around April/May 07 till just before federal election around Oct.
Timing the market is a hit and miss game, however if all stars are aligned perfectly with almost all criteria to deliver the spurt checked, then the probability of riding the growth spurt becomes very high.
I am predicting the fresh growth wave to hit frankston from the opening of eastlink to the preceding 6 months.
HTW's report also singled frankston out as benefiting the most in gaining prop values post eastlink completion.
API's feature (out in a week) will bring the area up on the investors' radar again followed by a period of media covering the biggest infrastructure project in the history of Victoria with atleast 3 special prop related features already in pipeline for the positive effects of eastlink on adjoining prop to appear in The Age in June.
It is currently a buyers market in Frankston with a lot of choice for buyers and sufficient negotiating room on the stock which has been sitting for a few weeks without any concrete offers.
It will be a different story altogether in 6-8 weeks time.
Harris
