Hi there
we purchased our first investment property in south frankston (melbourne bayside suburb) 8 months ago with the intention of renovating and selling within a two year time frame (this is a JV with a family member). As there is talk that the area has longer term potential with the possible development of a marine and redevlopment of the ‘town centre’, we’re now wondering if it would be more profitable to complete the renovations (mainly only cosmetic) and rent the house out for another 3 years or so rather than complete the renovations and sell in another year. Would appreciate any input.
Many thanks.I am originally from Melbourne and know the area well. I dont think you can go wrong holding onto good property in this area to profit from capital appreciation. Especially a large block of land. Why dont you sit down and crunch the numbers – say 7% avg capital growth over the next ten years. you might find the figures to be amazingly high. I just sold a property for 410k having bought for 250k ( did a 25k reno) in under 3 years. the area is still rising quite sharply. Remember sea side property is in very short supply!
look at ur own situation.i think this area will go ahead albeit at a steady growth minimum.un less ur desperate 4 the the funds 2 invastc in a sure high growth capitatal area i would sit and wait as buyingf and selling costs will sometim,es nagate the profit u will make somnewhere else.i recently bought a house in frankston north but i am amore ur buy vand hold 4 long term investor
thanks for your input guys, i’m with you … i think it’s probably best to hold onto it.. just hoping the house won’t be too hard to rent out … its a two story (ocean glimpses from upstairs) 3br with 3 living areas, 2 bathrooms, double garage and inground pool. we’re even thinking about adding another room so we’re able to ask more rent.
think real hard about adding another room, they can be sooooo expensive! get an accountant to crunch the numbers on that one.
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