VIC Frankston - Hold?

Discussion in 'Where to Buy' started by Btaylor, 2nd Mar, 2017.

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  1. sauber

    sauber Well-Known Member

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    Get me down to funky town!
    The people that are buying in frankston are people out of the city and investors. And that's why its jumping up so much. Look at seaford nealy a million dollar suburb....
     
  2. rook2017

    rook2017 Well-Known Member

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    Not necessarily. People also buy to get into FHS. I know lots of families moving in. People who are from Frankston also buy IP for themselves in the area.
     
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  3. sauber

    sauber Well-Known Member

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    Yeah that's frankston south but. In talking about frankston. Big difference
     
  4. rook2017

    rook2017 Well-Known Member

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    True. FHSZ still has more appeal.
     
  5. Anthony Brew

    Anthony Brew Well-Known Member

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    Hi Westie,

    There was a couple of thing of note in that post (thanks again for posting it by the way).

    Firstly and most importantly, a lot of the profit from that was due to buying in a rising market. If property prices were not booming so fast, that would have eaten away at a lot of the profit. A property cycle is generally 10-18 years, so by the time you are ready to do this, you might have to wait years for the timing to be right.

    Secondly I thought townhouses are normally estimated at around 175k each, so 540k for 4 townhouses sounds like she got an unusually good deal which may not be normal/possible for everyone?

    I'm not convinced it is generally possible to purchase around the 500k mark without very specific conditions (and/or luck) and make a profit. I think it is safer to buy during recovery where you can get it well below market value (I think outer edge of middle ring Brisbane might be ripe for this) and plan to hold until next boom.
     
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  6. Anthony Brew

    Anthony Brew Well-Known Member

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    Great post alicudi. Love hearing about possibilities which I have not been exposed to before.
    Also it seems like with that much potential that another 20k would have been worth it. If I had to pick from your options, it would be reno and put a townhouse and keep all of it - whether I could ever borrow enough money to do that is another thing though lol. Then again, could buy and reno with plans to put the townhouses on later on when cash is more available. But yes this option sounds brilliant. You would only need 2 of these investments in your life and you would be set for retirement. Thanks again for the detailed response.
     
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  7. Westie

    Westie Well-Known Member

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    Yeah I reckon @MTR timed it really well. At current prices, yes you'd likely make a lesser profit. From what I've read and picked people's brains, it boils down to how well you buy. Choose your builder well, get turnkey prices, get a corner block (if possible of course), having a number 8 property augurs really well for Chinese folks (this would drive prices up) etc. I sure am no developer (far from it) but definitely something I'd like to cut my teeth into with a smaller development first (1 or 2 units/THs). I strongly suggest reading that thread indepth and look at how she got a good deal.
     
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  8. Anthony Brew

    Anthony Brew Well-Known Member

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    Yea I went through it post-by-post, very interesting.
    Agree that you really need to buy well. I think for a 'regular' person without the contacts and ability to time the market well, it can probably still be done as long as you choose the right property with plans to do it in the future. I think anyone under 45 will have enough time to ride out to the next property cycle before retirement can do it, so that would make it very do-able.
    Although now that I saw alicudi's post, it has got me thinking about purchasing a property where you can split and put townhouses on the back instead of a second house. I'm just out of my 30's so this sounds like it might be the best way to maximise cash flow without sacrificing growth and going out to get cash flows in regionals.
     
  9. sauber

    sauber Well-Known Member

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    No it doesn't. Central frankston is where the money is now.
     
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  10. WattleIdo

    WattleIdo midas touch

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    The whole place is 9320176-3d-inscription-hot-on-red-hot-frying-pan-abstract-illustration.jpg

    Median asking price for a 3 bedder now 607K, up 62.3% over 3 years according to sqm. 30% over 1 year.
    Units selling close to 350K.
    Not just Central, not just FHSZ.












     

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    Last edited: 2nd Sep, 2017
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  11. sauber

    sauber Well-Known Member

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    Petrie St frankston sells for 938k after starting at 700k. Crazy times!!!!
     
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  12. Natedog

    Natedog Well-Known Member

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    Yeah I saw that result yesterday and thought WTF?? Was it a misprint?? Apparently not!!
     
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  13. sauber

    sauber Well-Known Member

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    nah no misprints there. just mind boggling. good for anyone owning a home i guess...
     
  14. malleybull

    malleybull Well-Known Member

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    It was basically a knock down job on a big block right?

    Seems like the developers are moving in on Frankston in a big way now....
     
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  15. Ian87

    Ian87 Well-Known Member

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    Long may the price price growth continue, I had mine revalued at 31% up in 21 months, the market is still moving as well. Definitely got lucky.
     
    Last edited: 4th Sep, 2017
  16. sauber

    sauber Well-Known Member

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    Yes developers and builders moving in very much so on frankston. The house was fine. But yeah they'll knock it over and build townhouses on it. Happening heps around where I live. A 4 bedder house on 690sqm going to be turned in 2 townhouses. A developer from Preston has one in and bought it.
     
  17. sauber

    sauber Well-Known Member

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    They said cost to build the 2 townhouses is 600k and they bought place for 482k. Probably sell for 500k each no doubt.
     
  18. alicudi

    alicudi Well-Known Member

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    Hi

    That's a loss!

    Regards,

    alicudi
     
  19. Westie

    Westie Well-Known Member

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    I think he meant 600k all up.
     
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  20. sauber

    sauber Well-Known Member

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    Correct westie