Hi everybody,
My wife & I have been thinking of jumping into the ocean of IP. We have been looking around the Noble Park, Frankston, Hampton Park sort of areas.
I would be interested to hear from the forum…..
your thoughts on the Eastlink coming up & its impact on capital growth in the surrounding suburbs
What could potentially be the growth suburbs
Given our situation, we are not looking at anything over 250K.
Most of what we have seen are usually properties that are about 25 yrs old & hence insignificant depriciation benefits.Does the buy property on big block, rent out the current property, hold for a few years, subdivide & sell formula still work?
So many questions…..
SID
Eastlink will have a positive impact, but IMHO just one factor is not enough to drive growth by itself.
The Geelong road upgrade is a good example. This upgrade + the Melbourne boom rippling out + the Geelong waterfront upgrade all were factors in the growth. Of those the most important IMHO was the Melbourne growth.
Given where we are in the cycle, I can see outer suburbs doing it tough growth-wise for quite a few years to come. This one upgrade is not enough on its own to push the market ahead in a significant or sustained way.
Originally posted by sverma:Does the buy property on big block, rent out the current property, hold for a few years, subdivide & sell formula still work?
I forgot to answer this.
My answer is YES!! Or at least I hope so, I’m just about to settle on just such a property. [biggrin]
I would think that Frankston will be the biggest winner from the new freeway. It has already started to grow and has the beach as a major attraction.
Regards
Alistair PerryI agree with Alistair
Frankston will be the big winner becuase of other infrastructure upgrades occurring as well as the freeway, such as the shopping centre , new apartment buildings, marina.
I owuld steer clear of Noble Park and hampton Park.
even in Frankston you must know your areas well as the new city plan has meant that some areas are earmerked for development and there are some areas in which it will be difficult to undertake development.
” Does the buy property on big block, rent out the current property, hold for a few years, subdivide & sell formula still work?”
We have bought 6 properties in Frankston just like this for clients in the last year.
As I said you must understand the new town planning regulations because it does not work throughout Frankston. But choose the right locations and you are likely to do well
Michael Yardney
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Frankston North is a pretty rough area and unlikley to change.
I would not invest there, I think I could find better areas
Its just not a great strategy for long term wealth
in one postand then here
Frankston will be the big winner…. We have bought 6 properties in Frankston just like this for clients in the last year.theres only a k or 2, between North frankston and Frankston…
what are you trying to say????
Hi all,
We bought in North Frankston end of last year. Sure the area may not be so desirable but people still need somewhere to live. Given that the Frankston area is only approx 40km from city, on the coast, and the new freeway making travel time shorter, I am taking a “calculated risk” in the purchase.
My 2 cents worth is that the surrounding suburbs have increased over the last 4-5 years and there is significant commercial interest developing in the area it could be a good bet.
However Buy, rent & hold does not give the returns. You will need to be creative in structuring the deal.
Mulder
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