[Ian FinneyParticipant@ianfinney10Join Date: 2014Post Count: 4]

September 25, 2014 - 10:03 am

I agree if buying anything apartment wise or off the plan make sure it is Low to Medium density and has something special or unique about it. Make sure there is some land component in the project. Buy one of fewer apartments, not one of many ie. “less is more” remember “land appreciates buildings depreciate”.

Regards,

Ian Finney | PPI Investment and Property Advice
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[Ian FinneyParticipant@ianfinney10Join Date: 2014Post Count: 4]

September 25, 2014 - 9:48 am

The reason the gap is so large is that the “median price” reflects the mid point i.e. there are just as many homes above this point as there are below it. It does not represent the “average price”. Given people are spending more and borrowing more to live in the more desirable areas this is showing higher median prices in Frankston South, Carrum Downs etc. Because people have more to spend they are looking at better quality properties or better location within their budget. What are your key drivers?? i.e. income , growth, tax effectiveness etc, This will help you in your property selection. The important thing really is to set a brief with some goals and objectives. I always spend a lot of time with my clients / friends in the planning phase before committing to a purchase. Nothing like doing your homework.

Yes it is a bit more industrial but that didn’t stop Richmond or Brunswick 20 years ago from becoming gentrified.

Regards,

Ian Finney | PPI Investment and Property Advice
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[Ian FinneyParticipant@ianfinney10Join Date: 2014Post Count: 4]

September 24, 2014 - 12:03 pm

Hi Draygun,
I have had some experience personally and with family buying and selling property from St.Kilda Brighton, Hawthorn, Frankston and Rye on the Morning ton Peninsula. My sister-in-law had purchased a house in The Pines area of Frankston North about 15 years ago. She moved to the UK so asked the question should she keep the property and rent it out or sell. Initially she kept the property and rented it. after a few hassles with tenants and a strong lift in prices around 2007/2008 we decided it would be better to fix up for sale as we didn’t see much upside in prices and she could use the equity to buy a house in the UK (where she still lives).
The property was sold for $260,000 which is probably not far off what it was worth now.
I would prefer Frankston South, Seaford or Carrum Downs to Frankston North for better capital gains and less hassles with tenants.
It sounds boring but the reason for the difference in performance is demand V supply both for rent and capital growth.

Also bought a place at Rye Back Beach in 2000 renovated it in 2006 and sold it in 2012 for 3 times what we paid for it based on the same philosophy that house prices had peaked and you never go broke making a profit.

Hope this helps and let me know if I can be of further assistance.

Regards

Ian Finney | PPI Investment and Property Advice
http://ppiadvice.com.au
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Licensed Property Financial Advisers and Buyers Advocates

[Ian FinneyParticipant@ianfinney10Join Date: 2014Post Count: 4]

September 23, 2014 - 4:22 pm

Hi Jared,

You didn’t state how much you had in total to spend? e.g. $350K – $400K.
It is pretty hard to buy anything decent in Melbourne under $400K unless you are a long way out. You need to be mindful that the further out you go the harder it can be to rent as demand is much weaker as less infrastructure , transport , employment etc.
Let me know some specifics and may be able to help you. All the best of luck.

Regards,
Ian

• This reply was modified 9 years, 7 months ago by  Ian Finney.

Ian Finney | PPI Investment and Property Advice
http://ppiadvice.com.au
Email Me | Phone Me

Licensed Property Financial Advisers and Buyers Advocates