VIC Frankston - Hold?

Hi all,

Just wanted to see what people's thoughts are on Frankston (Karingal). I have a PPOR there and am leveraging against it to build an investment property. My plan is the sell the current PPOR and move into the investment in 3-6 years, using the extra capital growth on PPOR 1 to pay down debt when I move into investment.

I'm just wondering whether Frankston has now done its dash? Frankston has had ridiculous growth over the last 6 months or so. I have only been in the PPOR for one year and growth has been about 22% on this house ($100k). I'm thinking now that this may mean that Frankston will plateau over the next 3-4 years and my plan won't be all that effective.. Should I just move straight into the new property once it's complete, sell this one and look for investment opportunities elsewhere?

My gut tells me not to sell at all if possible but wondering what others thought.

 

Agree that growth is great atm and doesn't appear to be slowing yet. Good timing. Can't give advice on your situation especially as building takes time.
I would say that the X-factor has come to Franga. I wouldn't sell but I'm like that.
PS I have a property there too.

 

Thanks @WattleIdo . I'd like to say that I saw this growth coming and timed it accordingly but honestly, it was just dumb luck!

 

Hi

I do not have any property in Frankston but are very familiar with the area and have owned several properties in Frankston over the past 20 years, I also live 10 minutes away. I believe that Frankston is going to have its greatest year in 2017 and will experience very high growth and could plateau once this year is over. But I am no expert!

Regards,

alicudi

 

Well here's hoping! The new house won't be finished until this time next year (land settles in Sep) so wouldn't be even considering selling before then.

 

I tend to agree with this.

The best kind!

 

Wheres your land brian?

 

Land is in Somerville. Planning to live there in the long term as my partner has family there.

 

I used to live in sommie many years ago. Would def move back. Nice country feel to it. Very relaxed area

 

In light of the recent news about stamp duty being axed for first home buyers, I will definitely be holding on in Frankston. Market is definitely a FHB market, most properties being sub - $600k. Hopefully this will lead to another year of strong growth for Frankston!

 

I think I will be selling my Frankston villa in the new financial year. The stamp duty being axed has made this decision easier It has gone up 50% on purchase price in the 2 years I have owned it. Don't think there will to much more growth in villas/units. What's people's thoughts?

 

Hi

Do you mind if I ask what specific part of Frankston the townhouse is in?

Regards,

alicudi

 

Reservoir rd near jubilee park, I think it's just out of the high school zone.

 

Hi

Reservoir Road Frankston is very close walking distance to the university. If you have doubled your money in 2 years that is brilliant.

Up to you whether you sell it or not, best of luck in your decision making.

Regards,

alicudi

 

Why do you think there won't be much more growth for villas and units?
That's not my observation at all.
I have a 4 bedder 'cause when I bought I was told that houses are definitely the go there, not units. True, houses are in demand. But so are units and villas.

 

@Top cat I would hold on a little longer. The changes to stamp duty for FHB may continue to fuel price growth in Frankston for the sub $600k market. 50% in two years is freaking awesome but it may still have some growing to do. Mine has gone up 22% in one year. I guess you can never know for sure where the top of the market is though. I'd say it's getting close. I'm going to wait for more signs of slowing though.

 

Property Report for 45 Frome Avenue, Frankston VIC 3199

This house just sold for $711k in Frankston. That's $275k growth in 2 years!

 

My thoughts exactly. I was at auctions and inspections in Frankston North on the weekend and the first home buyers were out in force and verbal about it. I'm not sure if they'll be able to get the bigger blocks though.

Quite a few agents were talking about a bit of stock coming onto the market shortly as vendors were waiting for July first

 

My wife and I purchased two Investment Properties in Frankston (Karingal) back in 2013. Very happy with the Capital Gains and rental returns since then. Only regret is that we didn't buy another one!

Personally I think the Karingal area is still undervalued - close to major shopping center, gold class cinema, Peninsula Link and nice leafy streets so I would hold for the long term but it all depends on your specific circumstances.

 

i'd rather central frankston. karingal is expensive now. central has the most amenities and access area of all frankston!. the list goes on:

• CBD
• Bayside shopping Centre
• Cinemas
• 3 Golf clubs
• 2 freeways
• PARC
• Chisholm Tafe (70m upgrade)
• Train station (50m upgrade)
• Power Centre
• Beach
• Nightlife (including the new "cheeky squire pub") highly recommended.

Hence why is now getting upwards of 700k now. You don't need to go anywhere and you have everything at your fingertips....how convenient thats why developers, business and families have bought in the area too, they know whats happening..and how fast it has grown but how much money is getting pumped into it.

i have lived here most of my life and love it, it has changed sooo much!!!!! my wife and i were thinking of selling and rebuying but not worth it now. too expensive to do it. and i have renovated the house. We are better off extending this house and raising the family here.