Will this affect Frankston's prices?

[Leikela]

I just bought in Frankston because I thought it had potential and the scum were slowly moving out... now it looks like they want to keep them there (I don't mean that all people who live in public housing are... I know there are some people who can't help it, but a LOT are just lazy losers and drug addicts in my opinion).

http://www.news.com.au/heraldsun/comments/0,22023,25835009-2862,00.html

What affect do people think this will have on prices? I bought in one of the nicer estates away from the CBD, even though the CBD is nicer being close to the beach but for the very reason it still looked too trashy and this will just make it worse.

I guess this sort of thing is all over the place, I live in an inner bayside suburb and we have them too. You can always tell where they are because they are full of rubbish and graffitti. I think these days it's not a case of pin pointing nice suburbs, but rather nice streets and pockets of suburbs because trouble is scattered everywhere it seems.

 

[Aaron Sice]

in the CBD?

immediately around it - bad.

remember Frankston is part fo the Transit City plan - so public housing would be no brainer for govt.

 

[Bayside]

Maybe Gov could put them in the Peninsular Building so they can have bay views! I noticed in my local paper Moorabbin are getting an 11 story Commission Highrise right next to the Council Chambers, people are not very happy.

 

[Harris]

Homeless and disadvantaged people have as many rights as non homeless and non disadvantaged ones.

They need to be provided with housing rather than leaving them on the streets.

In a population of over 50,000 people, 1000 wont dilute the growth potential of a very large suburb like Frankston.

Instead of fighting such proposals, we should focus on buying smartly and increasing the cash flow by adding value on our portfolio.

I would personally want all the 'undesirables' staying away from the areas that I invest in however rather than whining about real estate agents, council, homeless and drug addicts, I have learnt to accept them as parts and parcel of my investment strategy.

We cant control all the variables in our investment journey, if we could we would all have been multi millionaires long time ago !



Harris

 

[MTR]

We all just have to work with it.

In Perth, Government has allowed a mix of State housing in blue chip/affluent areas. These are areas where the median house price is around $1M, interesting to think that most average could not afford these areas.

Cheers, MTR

 

[Aaron Sice]

i love the whole "these people can't sleep in the scoreboard" complaint - but you can't house them in our backyard!!!

 

[Harris]

There is public housing in Collingwood, Flemmington, South Yarra.. all of those suburbs have a median which is more than double than that of Frankston and all of them are considered as prestigious inner melbourne suburbs with excellent growth prospects (long term).

Harris

 

[Aaron Sice]

We all just have to work with it.

In Perth, Government has allowed a mix of State housing in blue chip/affluent areas. These are areas where the median house price is around $1M, interesting to think that most average could not afford these areas.

Cheers, MTR

subiaco is close to many small CBDs and a major transport hub, unis, bus services etc.

just coz some folk decided on an exclusive estate around the old markets doesn't make it a desirable location.

subiaco and osborne park are two of the worst planned suburbs in perth IMO

 

[Leikela]

Exactly, these people who say to scatter them, rather that create ghettos.... have they ever lived next door to a housing commission house?? I know someone who did, and had so much trouble they literally fled from their own home they paid for!! Why do they have to put them in such populated areas anyhow? Put them in the middle of whoop whoop, it's not like they need to be near work! I think people in these places who are trouble makers should be put elsewhere far away. Like I said, I'm not against everyone in public housing... I feel sorry for those who are decent people who are just unable to turn their lives around, but I think a majority of them are just trouble and they should not think they are "entitled" to live in such places that we work so hard to live in, just because they want too! I was reading in the Port Philip newspaper recently about people wanting public housing in Port Melbourne because that's the area they grew up around and are familiar with... well stiff sh**! I lived in the very outer suburbs and travelled 3 hours to and from work every day until I could afford to live where I live. Can't always get what you want, especially when it's for nothing!!! Getting off topic, but it just annoys me because I know what my hard working friends went through with their home when they moved next door to a housing commission house (which they didn't know at the time).

 

[Bradsdad]

It could assist with local businesses and spending. This can't be such a bad thing.

On the other hand the risk grading with insurance companies could deteriorate further if crime rises.
I personally wouldn't be too bothered with it. Most of these people are sleeping in parks, floors of other peoples places, vans in neighboring Caravan parks, the scoreboard etc. Many of the "new" residents will come from the area (nearby) anyway.

 

[The_Bludger]

Getting off topic, but it just annoys me because I know what my hard working friends went through with their home when they moved next door to a housing commission house (which they didn't know at the time).

Before buying in dodgy area's, call your council and ask them if the properties surrounding the house you're interested in are commission houses if you are suspicious. They will tell you that they cannot give you this info due to privacy laws, but if you're very polite, you might just get away with it. I almost purchased a property that was littered with commission houses, and then bought elsewhere. Lucky! Another way to tell is to look for the pushbikes scattered on the front lawn, low wire fencing, clothes hanging over the verandah, young thugs walking in the street, etc.

As what it will do for Frankston, I'm not game enough to put my money there just yet and given that they are now planning on more commission houses, puts me off even more. Seen the scumbags that walk the streets and there's just too much of it for my liking. Even went to a few open for inspections and the owner\tenants were pigs.

 

[Harris]

As what it will do for Frankston, I'm not game enough to put my money there just yet. Seen the scumbags that walk the streets and there's just too much of it for my liking. Even went to a few open for inspections and the owner\tenants were pigs.

This is great feedback ... and great investing attitude that shall see you do very well

Same pigs infested Frankston Nth was kind enough to me to give me over 75% appreciation in 3 years for 2 prop side by side... figures posted in other Frankston thread with actual addresses to prove that point.

Now with 6 townhouses development process in progress, it will have well over 150% (1.5 times) appreciation on actual buy price and on building it will be far above the cash flow neutral stage with the cash flow and depreciation helping me to have a Frankston wide cash flow neutral portfolio.

Very prestigious inner melbourne suburbs of Kew and Mont Albert gave me far less growth (as a %age) in 7 years...!

Dumps in Rocky and Cairns almost tripled in value with one of those dumps being occupied in Rocky by someone on Centrelink pension (never been there but refinanced one of those in 2007 at over 250% of buy price !!)

Great beachside property surrounded by million $ properties (on a cul-de-sac) with a salt water swimming pool in Hervey Bay has given me less than 10% growth over the last 3 years !!

You are wrong . Imbalances, gentrification, cash flow, amentities and infrastructure, proximity to beaches, access to schools etc are more than sufficient to counter any anti-growth factors.

Either you have not been in the game long enough or have not invested in enough demographics to gauge that for yourself.

Harris

 

[The_Bludger]

Either you have not been in the game long enough or have not invested in enough demographics to gauge that for yourself.

Harris

Don't doubt you at all Harris and those figures are amazing. Well done! Unfortunately, I don't have the sorts of cash you have it seems and I'm still in the acquisition phase and can't afford to make mistakes. You seem well cashed up and the gains you made in other area's and over time have put you in a very strong position. Even if things turned pear shaped for you in Franga's, you could simply right it off. For me though, Frankston is still high risk and I just can't get some of those images out of my mind.

 

[Leikela]

I'm in a similiar situation to you Bludger, limited funds, first time investment and didn't want to take any risks but I still bought in Frankston. It is a very big place and although the CBD is quite rough as is Frankston North I think there is still potential. Land along the bay is limited, and how many bayside suburbs (still within reach of Melbourne CBD... just) can you still get a reasonable house under $300K? People like Harris can afford to take more risks and buy in dodgy areas and develop etc. but I was just after something more low risk, a nice property which would attract nice tenants. I feel areas like Lakewood, Whistlestop and Marylands would be fairly safe investments (I hope!) and their main shopping complex would be the Karingal one which I feel (but could be wrong) isn't quite as bad as the main Frankston centre. They are quite nice, big homes, family areas and fair distance from the rough CBD. I don't doubt you can make big gains by buying up in dodgy areas and re-developing etc. but for a safe long term rental investment I still think there are some areas that would be safe bets. I just hope by adding these commission homes in the CBD only drags down or keeps down the immediate area around them and not the whole Frankston post code as it incorporates a very large area.

 

[The_Bludger]

I'm in a similiar situation to you Bludger, limited funds, first time investment and didn't want to take any risks but I still bought in Frankston.

What did you pay for your IP Leikela and what sort of return are you getting on rent? The other thing that scares me in Franga's are the tenants. When you're geared up, last thing you need is defaulting tenants.

 

[Leikela]

I paid $290K, getting 4.9% return. My tenants will hopefully be ok as they're on high salaries with excellent references. I bought in one of the better (in terms of quality homes) areas, and would rather pay a bit extra for a home in that area than say a cheaper home in a dodgier area and get a better rental return just because I didn't want to have that sort of risk you talk about. Some people (perhaps true investors) go purely for capital growth and rental return but I just couldn't bring myself to do that. I wanted something nice and low risk in terms of tenant quality. I plan to hold onto the property for a very long time, so don't expect or need any quick gains. It's not a true gain until you sell anyhow, and I don't plan on selling any time soon so that side of it doesn't bother me. Of course the sooner it goes up though, the sooner and higher the rent will increase also.

 

[Leikela]

Bludger, plus there's landlord insurance....

 

[The_Bludger]

I paid $290K, getting 4.9% return. My tenants will hopefully be ok as they're on high salaries with excellent references. I bought in one of the better (in terms of quality homes) areas, and would rather pay a bit extra for a home in that area than say a cheaper home in a dodgier area and get a better rental return just because I didn't want to have that sort of risk you talk about. Some people (perhaps true investors) go purely for capital growth and rental return but I just couldn't bring myself to do that. I wanted something nice and low risk in terms of tenant quality. I plan to hold onto the property for a very long time, so don't expect or need any quick gains. It's not a true gain until you sell anyhow, and I don't plan on selling any time soon so that side of it doesn't bother me. Of course the sooner it goes up though, the sooner and higher the rent will increase also.

Sounds like a great buy! Congratulations.

 

[Player]

Real estate is a relationship business.

Whether this involves dealing with an agent, a PM, the actual vendor or tenant, your service providers, etc., we would all do well to remember we are dealing with people.

The word "scum" and "pigs", probably will do little to enhance the potential rapport you are likely to need in the future with any of the above personnel.....in particular your tenants.

Leikela, it is interesting you even have that perspective of the CBD (and you are entitled to your view by the way; I'm not judging, merely observing), whereas I find the Frankston CBD, and shopping centre to be a delight. It has a good feel. It is a little dishevelled and run down opposite the train station, as it is in most train station precincts.

Perhaps approaching your purchase and future purchases in below median areas with the view that we are all different however we are human. Using language such as scum to describe a demographic you are not fond of may cloud your future intraction with the people and tenants that inhabit your property.

Remember that your IP (house, unit or whatever) is a rental box to you, however it is a home to someone else (the tenant).

Our tenants are human beings. For the occasional wayward "bad tenant" as has been stated there is landlords insurance.

Hope your investing is a positive experience for you.

 

[Aaron Sice]

Before buying in dodgy area's, call your council and ask them if the properties surrounding the house you're interested in are commission houses if you are suspicious. They will tell you that they cannot give you this info due to privacy laws, but if you're very polite, you might just get away with it.

funny that - or if you just pay a bit for RPData day access you can find out for a fee - amazing how much privacy laws can be bypassed for.