Forums / Property Investing / Help Needed! / Carrum Downs vs. Frankston North

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  • Profile photo of dragundragun
    Participant
    @dragun
    Join Date: 2008
    Post Count: 14

    Hi guys,

    I’ve been looking down toward the Mornington peninsula for my next place. Some of the coastal suburbs like Seaford seem to have quite low gross yield and prices have had a bit of a burst recently. Frankston is kind of in the same boat, however Frankston North (despite the socio-economic status) seems much lower median with good yield and good long term growth.

    I’ve also been looking at Carrum Downs which is slightly inland but has access to all the same major transport links and is still only 15min from the coast. I’ve noticed the yield is much better due lower medians but longer term growth hasn’t been as good. Does anyone have any experience down there and know the reason for this?

    Any info about the area/specific suburbs to avoid and why would be fantastic.

    Back to my research..

    Thanks all!

    • This topic was modified 5 years, 1 month ago by Profile photo of dragun dragun.
    Profile photo of Ian FinneyIan Finney
    Participant
    @ianfinney10
    Join Date: 2014
    Post Count: 4

    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
    Email Me | Phone Me

    Licensed Property Financial Advisers and Buyers Advocates

    Profile photo of dragundragun
    Participant
    @dragun
    Join Date: 2008
    Post Count: 14

    Hi Ian,

    Thanks for the reply, much appreciated. I tend to agree but I can’t help but feel that given the massive difference in median price that F.North will catch up at some point? In any case, most of the better quality properties seem to be around the areas you mentioned. I have had some feedback on Carrum Downs being a little ‘industrial’ for residential investment, any thoughts on that?

    Thanks again!

    Profile photo of Ian FinneyIan Finney
    Participant
    @ianfinney10
    Join Date: 2014
    Post Count: 4

    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
    http://ppiadvice.com.au
    Email Me | Phone Me

    Licensed Property Financial Advisers and Buyers Advocates

    Profile photo of BaysideBayside
    Participant
    @mornington
    Join Date: 2018
    Post Count: 64

    The Mornington Peninsula has been a great are to invest in in the past 2 years or so. It is also a great time to invest in the area now!

    Bayside

    Coastal markets 2019

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