VIC How has Frankston worked out ?

Threads in Frankston where all the rage a few years back.

Just wondering how it worked out - has anyone made their fortune on the back of it ?

Gas it gentrified as hoped ?

Wasn’t my cup of tea - but there was a lot of posters promoting it.

So ..... did I really miss out ?

 

Dunno if it gentrified or not, a wise friend of mine bought 4 in Frankston over the years. I heard he's reno'd and sold 2 and made a fortune (several hundred thousand's nothing to scoff at!).

 

I think its done pretty well. Difficult to find anything in Frankston North for under 450k, and in Frankston for under 550k, (perhaps more now, I haven't looked for about 6 months). I was pretty much priced out for my last IP unless I wanted to spend 450k in Frankston North that practically was inhabitable. Would have only been feasible for a developer, not anyone for a long term hold unless you had 30k+ to drop on fixing it up

 

I didn't mind Frankston, I thought I could even live there one day, until I took the kids to the movies there on the school holidays and saw all the ferals hanging out all over the place. Too many ferals for me

 

It's done really well especially in the last year ie 450K to 580+K median. I think it won't stop for a while now though it will undoubtedly slow down at some point.
Whether you've missed the boat, I can't say. Personally, I wouldn't want to be buying at these prices but seems I'm the exception to the rule. I probably wouldn't want to or be able to buy what I paid in Frankston years ago, which is why I'm not selling.
Gentrification is definitely under way. Yes there are still ferals.
There are several current threads going.

 

I bought in July 15 had it revalued by the bank in June 17 and it had gone up just over 31%.

Have had the same amazing tenants the entire time an old retired couple, always pay rent on time and treat the place as if it was their own. When they move on I will look at renovating as it is a bit dated but still very functional.

Market has moved heaps in the time I have held there, whether it keeps going I don't know.

 

To be fair, I do like Frankston. I just didn’t like the walk from the car park near the train line to the movies. It’s got a decent beach/foreshore area, plenty of shops / restaurants and plenty of employment/schools. I can’t see it slowing down at all. Years ago we used to travel there on summer nights before we had kids to go to the beach and eat fish and chips.

 

I would long term hold if u can. I tried to buy in but ended up with another in the western suburbs only becuas ecould buy in a bit cheaper and closer to the city. Spewing I didn’t buy in Frankston 3-4 years ago

 

I was looking to buy in late 2015 but decided to buy elsewhere. Sigh.

 

I didn’t have the equity to anyway back then. I keep telling fhb friends to buy in Frankston and rent it out instead of new estates in Clyde and Cranbourne but they don’t listen! They just want a shiny house and to live in it.

 

For those holding have the rents increased along with house prices. Can I ask how much if so

 

Its been great!!!! Had mine revalued at (580k bank val) not bad only putting in 40k all up. Bought it for 320k in 2011. We were going to extend but for $170k I said no way!!

Will most likely rent out and do some travelling with wife and little one when finished my apprenticeship

 

Depends what area. All varied tbh. Some people asking 400-450pw for a 3 bedder while others ask 350pw.
I was getting 320-330 a few years back it'll mist likely be nearly 380 PW if I wanted to rent out.

 

I was looking at buying in Frankston three years ago but decided to add a bit more money and buy in the North closer to the city. Median price was around 350K-370K back then and now it's around 550K so the suburb has done well for sure

 

Median rent is showing @ $380 pw so it's recently gone up from $360. But there must be a lot like me who are lagging behind and still sitting on $335 pw. Thing is, everything happened so quickly!
I have put the rent down to get a tenant in the past. However, if fhb's keep moving in, I expect rents to keep moving slowly upwards. Not too fast because the whole point of the place is that it's affordable. At least for now.

 

It's similar on the other side, slow rent rises. You would think with such high increase of 100k++
there's a lot of demand and low vacancy rates. But the rents aren't holding up as yet.

 

I have put my rents up by $35 in 2 years, started at 295, now 330 for a 2 bed 2 bath house with big garden and entertaining area. Agent appraised it at 360+ last time but I didn't want to increase by that much and lose my long term tenants. So I could make more but at least this way I know the place is well looked after and it doesn't cause me any stress.

Problem is it is still quite a varied market some places have had amazing renovations and get a decent price while it seems others are still well below market value. I think a lot of people bought very cheap and have held for a long time so even if they only get 300 they are covering all costs and probably slightly positively geared, it saves them spending on renovations and they still get the rising land value.

 

Frankston and its sattelites have gone up in prices nicely over the last years. To all those who bought there - kudoz, the rest of 'naysers', please keep doubting every suburb where you have not invested whilst we continue investing. I personally bought 2.5 years ago (a house on a 770m2 block) and the current market value has gone up by 60-70%. My prognosis is that in two-three years from now, the market value will double the original price...I can either build another one or two at the back and basically get extra investment property in an established suburb with much less investment costs compared to buying a new investment property anywhere in Melbourne now...and btw, I kept the rent at the same level - $380/week as the tenants are really good, but planning to increase some time next year depending on the rental market demand in the area.

 

Frankston is one of those places where you wouldn't claim Luck as the main component of your good fortune, that's for sure. When there's no growth or negative growth and unspectacular yields, the only thing you can go on is Drivers. A lot of people only see distance from cbd, housos, junkies, etc. When you can see the drivers, you hold on. This can include madcap pollies fighting tooth and nail for the area, the construction of motorways to the area, constant investment via local council, affordability, geographic barriers to expansion, higher medians in surrounding suburbs, good source of tenants, and now massive fhb buy-in.
I spend a bit every year maintianing the propety (even though it's not that pretty) because the tenants expect it. Just normal things like fences, carports, skirting boards, toilet cisterns, etc. (Of course! ). My tenants are very good in some ways. Yes, they treat the property as if they own it. On the other hand, they are the type to keep their furniture in the back yard (not the front, at least) and who knows what happened to the lawn! But they have never been behind in payments even once in three years (though previous tenants sometimes fell behind). And they replaced all the sleepers in the garden with new ones etc, unbenownst to me. I had to tell them to stop that sort of thing and sign a letter, I don't want the complications.
They're 2 parents and 4 school aged boys - just as well the house is a 60's tonka. Maybe I'll move there next time I need a change and see what I can do to pretty it up a bit.
@Otie that train station is still notorious . Hopefully the major renovations around the station precinct will bring some change. This should make all the difference. Does anyone know how it's going now?

 

Yeah the young St redevelopment ismovin along really well. Nealry done in. Few weeks. They have put in palm trees and its looks super sweet!!!! Tue station orks havent begun yet.The overton rd overpass is about to begin as well. A few apartment developments have begun as well! The Chisholm tafe redevelopment has begun as well too