VIC Frankston

Yeah thats the karingal part of frankston alot cheaper there

 

Just read through this thread which started over a year ago. I hope people didn't take any notice of the Frankston Haters with their predictable dreary old negative stereotypes of Frankston. Those who ignored them and invested in Frankston will be delighted with the big growth in value over the last 12 months. Properties are being snapped up as soon as they come on the market - a lot more properties are now going to auction and getting great results. Bargain hunters have missed the boat with Frankston but I still think there is good value to be had relative to other bayside suburbs.

 

Hi mick.
Thats true. I had neighbours who thought i waz mad buying in "frangers". Well 8 yrs on and 3 props bought and sold I'm certainly happy with the results. And there is still more upside i think. So many double storey planning permits in council now. Just look at the council website. Once the developer mooves in there obviously seeing value there.
Happy frangers.

 

Yes i was just looking on the council website. There are so many applications!!! I suggest anyone with a 600sqm block hold hold hold! The value is going north quite quickly!!!!

 

Looking for some input from the members knowledgeable on Frankston/Seaford.

Our friends bought this place as a PPR earlier in the year:

201 Seaford Road, Seaford, Vic 3198 - Property Details

I know a little bit about the area as I was looking at an IP in Seaford myself earlier last year.

My fiancé was speaking with this couple over the weekend and I'm not sure I agree with their plan for this place, it is as follows

1. Goal is to buy a PPR in edithvale in a few years
2. With this property they had a builder come out and quote them $360k to subdivide the back years, retain the existing house and put a unit on the back. Included in that (which confirmed my suspicions in the photos) is shifting the driveway wall of the house in 30cm to allow for the legal minimum driveway width..
3. Sell the existing house and retain the unit at the rear

I have not done any figures on this but assuming they are already in LMI territory on the initial purchase of the property for $470k plus costs I can't see how this is a feasible option at this point.

I think it would be a sub par sized unit at the rear.
Can anyone else see how this could possibly be a profitable exercise at this point. It just seems like a whole lot of headache for zero return in my book, especially for a couple who have never developed before.

My alternative to this strategy (which I have not spoken to them about as I'm not sure they want the advice), is this:
1. Keep this place as is
2. Sell Berwick IP (H&L package) as it is a cashflow drain not growing at present
3. Accumulate savings in offset of Seaford property
4. Finish renovating Seaford (currently in progress)
5. Maybe look at partitioning in sunroom to create additional bedroom.
6. Refinance Seaford after Reno and sale of Berwick - possibly may be enough for deposit in edithvale
7. Finally during the next property cycle or the one after that, demolish the entire Seaford property and build townhouses on the site. Possibly 2 doubles and a singe? I'm not sure about how many could be put on the site.
That way they have had some uplift in the land value over 8 years or so for one, secondly the sale value of the townhouses should be better at that point as the area starts to be developed further. Sell 2 keep 1 or sell 3 and pay down edithvale loan to ease the mortgage belt.
To me being on Seaford rd it is a townhouse type site.

It is a tidy house with good bones but I don't think they bought wel enough (sub 400) to enable a rear unit to be built to make a profit from that.

These are my rough ramblings guys and just initial thoughts. Just curious on face value how others would give feedback to our friends..

Thanks all.
GG

 

Why would you renovate the seaford house to just demolish it? Pointless exercise really just to build townhouses.

Btw its a beautiful place. Triple front homes are a rarity in frankston/seaford. Theyll be worth alot very soon..

 

What are you talking about?
Renovate to live in it/ modernise a bit.
Didn't say spend 100k on it.
10-20k to have a PPR freshened up to live in for 8 years or so/ rent out.
They are living in it, hence you need to be comfortable where you live.
Plus I said demolish in a couple of cycles time.
Go back to sleep..

May be triple fronted but it's never going to demand a premium being on Seaford rd.

 

We are Sydneysiders who have only ever invested and held properties in the lower north shore, hills and inner west north of Parra Road. We are overall conservative and risk averse. About 2 years ago we started exploring lower entry point properties interstate to try understand that market better as we know people who have done very well investing in them. We settled on Frankston in mid 2014 and bought a house site unseen late that year. It's on 600sqm plus but we had no experience in development so decided to stick to a mainly cosmetic reno with the addition of a bedroom and bathroom. Exactly a year after purchase it was revalued 57pc more than than purchase price and rented at 30pc more than previous rent. It was not an easy project being our first interstate Reno project and we flew down on weekends from Sydney which was extremely tiring and time limiting. Lots of issues and obstacles were encountered including trespass and theft. But suffice to say in hindsight we would've struggled to hit those numbers if we went with any of the other suburbs we were considering at the time.

I remember some resistance about Franga when I posted about it back during my DD days. Experienced BAs on the forum recommended against it. I completely understand their positions. I had a lot of reservation and doubts myself but my husband pushed me over the line - he felt confident in the suburb based on our DD.

Will Franga continue to perform over the long term? It's hard to say. In Sydney the western suburbs went up significantly during the boom but have been the first to correct since the market has "cooled". I put quote marks as anyone in many other parts of Sydney will be quick to tell you their areas are just as hot as before. Auction clearance remains high at 77pc the past week..

With a big reno, a large portion of your costs will be capital costs rather than expenses. You can't claim them in your tax return, but they do go towards the cost base of your property, reducing the capital gain when you sell and the CGT. We've never sold any of our IPs in Sydney but I'm becoming more open to the idea and will reassess whether we want the Franga IP to remain in our portfolio in the long term. In my view, the only thing holding the suburb back is the distance to CBD. The demographic will undoubtedly change over time, but distance cannot be changed. The train still takes an hour and the drive is still at least 45min via the freeways. Lucky it has a nice beach and there is always going to be a demographic who values that and be happy living there.

The biggest take away for me from our Franga experience is ... sometimes you just have to believe in the strength of your convictions. If you've done the DD and it stacks up (and you can buffer a small loss if things do go wrong), it's worth having a crack. Lots of things to learn along the way which will only help you make better decisions in the future.

I'm glad to hear the increase in demand and price in the area as it would mean a lot of people would have made some good money.

We wish everyone else happy investing in Franga and hope you all make big gains!

 

Beach shed on Frankston beach sold at auction on weekend for record price of $155,000. Damn, I could have picked one up for $20,000 a few years ago. Who would have thought?

 

How come they were so cheap?
Wonder How much are the sheds on Brighton beach these days in comparison

 

Ok, so for the people who were interested in the design brief for the new frankston station works here they are.
Young Street Plans
The red tape has been cut and it will begin this week.

Features

• A new landscaped boulevard along Young Street between Wells Street and Beach Street
• Pedestrian friendly environment with wider footpaths
• More frequent pedestrian crossing opportunities
• Raised crossing surfaces between Wells Street to Station Street, and Ross Smith Avenue to Beach Street
• 12 new bus bays with real-time passenger information displays
• Improved bus waiting areas with new bus shelters
• Additional lighting and CCTV

Benefits

• A safer environment for people to meet and wait
• Improved bus operations and facilities while reducing the presence of buses on Young Street
• Improved connectivity to the precinct, train station interchange, subway and the retail hub of Frankston
• More opportunities for kerbside trading for businesses on Young Street

Also the chisholm tafe work have also begun aswell, as the government is looking to spend somewhere in the vanity of $80m in frankston for these projects in total.
Sauber.

 

Going gangbusters atm!

 

I noticed 47 3 bedroom houses for lease in frankston alone. And about 40 2 bedders for lease.
Would that not constitute an issue for leasing properties in that place with those kinds of vacancy amounts?

 

There are different sorts of 3 beds though within that search. For instance, searching for 3 bed family homes with 2 bathrooms and 2 garages only brings up 8 results.

 

Just leased my place over Xmas- New years in 11 days, had 6 apps to choose from.

 

Great stuff. I have had the same tenants since purchase 18 months ago. They keep the place immaculate and are very low maintenance. They are an older couple as well so for all purposes seem content to stay there for a very long time to come.

Frankston is definitely changing.

 

Interesting that an extra bathroom can make a really big difference.

 

Interested to see what this Villa sells for, purchased for 293k late December on the market now for 360+ has had a bit of a Reno.

Before - 7/199 Beach Street, Frankston, Vic 3199 - Property Details
Now - 7/199 Beach Street Frankston Vic 3199 - Unit for Sale #125083906 - realestate.com.au

 

86 McMahons rd sold for 635k! Insane!!!

 

I've been a Frankston fan since 2001, acquiring 18 ips in The Pines alone.
Purchased most at 100-115k, so they've done ok. They are safe though returns in the initial period maybe slightly in the red (if fully financed)
Rental returns have been consistent and it's downtrodden name is certainly changing. More developer activity lately and it's still close to the beach.

It's good value (not great) at today's prices. Trick is to buy and negotiate well.