What is Melbourne's Best Suburb To Invest In?

Summary

Highlights

• Frankston is shaking off its bad reputation and becoming a desirable place to live. 🏡
• The area offers beachside beauty along with affordability—perfect for first-time buyers. 🌴
• Properties in Frankston are currently experiencing a notable price surge. 💰
• Frankston's proximity to Melbourne and improved infrastructure is boosting its appeal. 🚉
• The suburb's school zones, especially Frankston High School, are driving demand. 📚

Key Takeaways

• Frankston's transformation makes it a top spot to watch for property investors! 🚀
• The stigma surrounding Frankston is fading—it's becoming a desirable suburb! 🌟
• Property prices are climbing due to high demand and limited supply in Frankston. 💹
• Frankston's strategic location boasts connectivity and lifestyle appeals. 🌊
• Investing in Frankston now could mean striking gold in the future! 🔑

Overview

Chapters

• 00:00 - 01:00: Introduction and Frankston Discussion The chapter discusses real estate dynamics, focusing on the time it takes to sell a home and the potential benefits of buying property in Frankston. It highlights that properties in areas with constrained supply levels, like Frankston, are likely to experience price growth due to high demand exceeding limited supply, which is a fundamental economic principle. The scenario where many buyers are interested in a single property illustrates the competitive market environment.
• 01:00 - 02:30: Transforming Perceptions of Frankston Frankston is a suburb that has historically been perceived negatively, holding one of the worst stigmas in Victoria and Melbourne. The chapter suggests that there is potential for a significant transformation in perception, with Frankston possibly becoming a prominent market in Melbourne within the next five years.
• 02:30 - 04:00: Frankston's Real Estate Market Dynamics Frankston's Real Estate Market Dynamics: The real estate landscape in Frankston has significantly evolved over the past decade, with noticeable changes even in the last few months. There's a surging demand from first-time homebuyers, owner-occupiers, and investors alike. The transformation in Frankston's market is noticeably different from just 9 months ago, marking a substantial shift in its real estate dynamics. Even factors like podcast releases about the area have played a role in influencing market demand, although the full impact is yet to be seen.
• 04:00 - 05:00: Personal Experiences in Frankston This chapter discusses the speaker's experience with real estate properties in Frankston. The speaker notes a significant increase in property prices from the previous year, jumping from the low to mid-600s range to 700s to 750s. The speaker expresses their enthusiasm about this development and shares a personal story about deciding to fly to Melbourne. They describe getting into a car with their kids, though the next destination is not disclosed in the provided transcript.
• 05:00 - 08:00: Frankston's Appeal and Real Estate Insights In this chapter, the speaker recounts a personal anecdote about a trip to Frankston, highlighting its appeal and connection to real estate insights. While traveling to Mornington Peninsula, the speaker and their family stopped at Frankston beach, enjoying the moment despite one of the children being asleep. The story reflects the charm and surprising allure of Frankston as a location, which might be of interest in the context of real estate.
• 08:00 - 09:00: Comparing Frankston to Other Locations The chapter discusses perceptions of Frankston compared to other areas. It addresses misconceptions about Frankston being a 'poor man's Sydney' while also acknowledging it as a nice place to live with attractive qualities. The discussion involves the confusion over its connectivity issues despite its desirability as a residential area and highlights Frankston's geographical distinction, explaining its various parts like Frankston North, Seaford, and Frankston South. Ultimately, it touches upon the general association people make when they refer to Frankston.
• 09:00 - 16:00: Strategic Importance of Frankston The chapter discusses the strategic importance and appeal of the Frankston and Seaford areas, particularly emphasizing the premium property market there. It highlights the attractiveness of the location with property prices nearing the $800,000 mark in some parts, while noting that there are still opportunities to purchase houses below $750,000. The area is described as aesthetically pleasing, adding to its appeal.
• 16:00 - 20:00: Frankston's Development and Future Potential The chapter discusses the suburb of Frankston, highlighting its appeal to those seeking a quieter, beachside lifestyle. The narrator reflects on their personal experience and observations during a visit, noting the area's progression towards gentrification. Despite the quietness experienced during a long weekend visit, there is an underlying potential in Frankston owing to its natural beauty and emerging lifestyle opportunities. The chapter also provides a brief comparison to the narrator's previous residence in Sydney's eastern suburbs, emphasizing a post-COVID appreciation for beachside living after moving to Marubra just before the second lockdown.
• 20:00 - 25:00: Investment Opportunities and School Zones in Frankston The chapter highlights the unique charm and appeal of an area in Frankston, describing it as a magical place where the environment feels selectively enchanting, almost as if one side of a road experiences rain while the other remains dry. The discussion includes the delight of being near golf courses and water bodies, emphasizing the area's allure and desirability among residents. The sentiment is that Frankston is highly sought after as a place to live, akin to a beautiful part of Sydney that locals greatly appreciate.
• 25:00 - 32:00: Frankston's Strategic Location and Future Growth Frankston is strategically located, offering potential for future growth. Similar to Marubra, it is accessible and close to Melbourne's action. With a train station and a nice beach, it presents an appealing opportunity for development and investment.
• 32:00 - 41:00: Frankston's Market Position and Conclusion The chapter discusses Frankston's market position, focusing on the importance of data and emotional appeal in real estate decisions. The narrator shares an anecdote about a client who was willing to pay significantly more for a property in Frankston due to its desirable location near the beach. This highlights how market data and emotional factors together influence property value and decision-making.

What is Melbourne's Best Suburb To Invest In? Transcription

• 00:00 - 00:30 How quickly does it take to sell a home? And if you buy in Frankston, the the chances are you're going to do quite well. But then there are properties that are going to do better. And when you correspond that with supply levels being constrained, then you have the hallmarks of that price growth happens when demand is exceeding supply. That's just basic economics. So when it does, you're like, "Wow, okay, there's 20 people wanting to buy this one house. [Music]
• 00:30 - 01:00 This gem could be Melbourne's number one market over the next 5 years. AI, I'm here to talk to you about Frankston. Frankston. Let's talk about Frankston. Let's go. Let's get straight into it. Honestly, Frankston is such a funny one, man, because historically, yes, Frankston has one of the worst stigmas in all of Victoria, all of Melbourne. It was just just terrible. Just people didn't like Frankston, right? But Frankston has
• 01:00 - 01:30 completely evolved over the past couple of years or last 10 years really. Um and we starting to see some really big demand from first home buyers, owner occupiers and now investors as well. So I would love to talk about Frankston. Frankston actually looks completely different from where it was 9 months ago. Um yeah, completely different. It's it's moved. Was that the day we released the car downs podcast? December. Yes. Yeah. That that did not help, I'm sure, uh with the demand, but honestly, we can now uh actually see it probably hasn't
• 01:30 - 02:00 flowed through to the data level yet, but the same properties we were buying June, July last year for, you know, sort of the low 600s to mid600s, they're quite literally going for 700s to 750s now. It's the exact same property as well. So, guess what? I love it. Guess what I did? What did you do? I flew to Melbourne. Did you really? And guess what I did after that? You went to Frankston? No, I went into a car. Okay. And then I got into that car, buckled my kids in, and we were going down to
• 02:00 - 02:30 Morningington Peninsula. But then they fell asleep in the car. Everyone's getting this play by play. So, sorry audience. You're going to hear it. It's a story. It's the full shamzle. You're getting it all. And then I stopped at Frankston and went to the beach and went for a quick little dip in the water while it was happening with one of my kids while the other one was sleeping. And I was there being like damn this is nice. Where am I? Is this kind of like you know just like sorry Franks tonight
• 02:30 - 03:00 you're not going to like this bit like is this kind of poor man in Sydney but like it was good. It's a nice spot. It's a nice area to live. Why why would this area have bad signal? It doesn't make any sense to me. Surely you'd want to live here if you're a member. I don't understand. Look Frankston is quite a large LGA, right? So Frankston has cars in it. has Frankston North has Frankston has Seafford then there's Frankston south that is probably the area that people associate when they sort of talk about Frankston in general so Frankston
• 03:00 - 03:30 south does have some where's the beach uh we talking about Frankston and sort of seafford area right so this is this is the gorgeous pocket of like the LGA and the price you know the price points at sort of these are sort of you're sort of nearing the 800s as well so you're talking about a premium side of Frankston but Frankston in general there are some fantastic pockets there where you can still pick up houses for that sub750, which seems to be incredibly popular now in terms of the client base that we are seeing. Um, and you're right, man. It is pretty. It is like it's a it's an aesthetically pleasing
• 03:30 - 04:00 suburb, which I think works for a lot of people because they want to have I mean, my experience there was the beach is pretty. A lot of it's pretty. Uh, I was there for the long weekend, though, so perhaps that's why it was a little bit quiet, but it does have a little bit of a gentrification story that's there going to it. But I come from Sydney's eastern suburbs now. I live there. I love going to the beaches all the time. It's amazing. Lifestyle is so so good, especially postco. So, I moved to Marubra uh just before the second lockdown in Sydney. And Marubra happens
• 04:00 - 04:30 to be one of those I it's literally a magical place where you just feel good. I I often say that one part of the road it feels like it only rains on one side of the road and not the other. Like there's some golf courses in the water and being like, "No, that side you get rain, this side you don't." It just feels like magic. Beautiful. It's this beautiful part of Sydney. A lot of Sydney siders feel the same and they're just like, "Hey, this is a really desirable place to live." When I think of Frankston, I think of like maybe an
• 04:30 - 05:00 area like Marubra or parts of these suburbs before it became cool and before it became awesome. And it's kind of got that potential attached to it because it's not miles and miles away from being close to the ah action in Melbourne. It's accessible. It is. Uh, it's got a lot going for it. And it's got a train station, too, as well. It does. Yeah, it does. Yeah. Am I getting that right or do you think I'm just Am I overreading it as a Sydney cider that went and visited be like, "Oh, it's got a nice beach. Let's get by there." Is that am I
• 05:00 - 05:30 just sounding like a dork here? No, I think I think there's definitely some uh definitely some merits there to what you were saying, but I'm the data guy, so I loved I love looking at what what's happening at the data level. Yes. Take the emotion out for me, Yeah. And and I love that, you know, it sort of appeals. I actually had a chat with a client today. He wanted something a little bit more upscale market versus some of the markets we had presented to him. We mentioned Frankston and we mentioned the beach and suddenly, you know, he was happy to pay another $100,000 to get into that market. It's an emotional element, but the great thing is the data story is also there to sort of underpin
• 05:30 - 06:00 really. Yeah, absolutely. It has all the hallmarks. I mean what I just said earlier right for a for a market to move from 600s to 700s in the span of like 6 to9 months that is a pretty significant movement. Let's give the audience a quick rundown on that that data framework. Tell me what's going on in Frankston. So I like to look at it um if if a if a client comes to me and says hey look I'm sort of looking to extract equity in the next two to three years. I'm interested in Melbourne. It is kind of frankness is one of the first places that I think about because they're
• 06:00 - 06:30 usually the budgets around 700 750 and the drivers that I look for to underpin what that growth will look like in the next two years is supply and demand right so I look at what supply is doing in the market what um you know what kind of building approvals it has what kind of hold periods it has which is hold periods is basically a reflection of how long someone holds the property in prodction it has like 11 12 years so people typically hold on to their properties well past a normal sort of market cycle and I love that on the demand side what's happening is there has been a very market shift in uh the
• 06:30 - 07:00 days on market that's happening in Prankton what was 60 70 days maybe 12 months ago it's now fallen down to 50 40 probably some some of them actually turning over within a couple weeks right so the demand is now happening at that ground level as well and that that framework where the supply is low and the demand starting to increase you are talking about the hallmarks of a hot spot and I would honestly at this don't consider uh Frankston and the Frankston surrounds as hotspots and wow wow I love
• 07:00 - 07:30 that on the ground intel so unpacking something that just said there measuring demand for a property market is like how do we do that one one way there's a a whole story group of data sets that you look at but one way to look at it especially for Melbourne markets is how quickly does it take to sell a home if you sell a home very very quickly then it suggests that more and more people are trying to bite Melbourne. Another one is auction clearance rates. If if auction clearance rates in a particular area are beginning to increase, then you
• 07:30 - 08:00 can start feeling that that area has more demand. And when you correspond that with supply levels being constrained, then you have the hallmarks of that price growth that happens when demand is exceeding supply. That's just basic economics. You touch on something really, really cool there as well. my observation. I I spent 10 days in Melbourne around, looked at so many properties, drove around to so many of these suburbs, looked at where we're buying, looked at where I want to buy. I said it before, I think I said it on this podcast is I want to buy in
• 08:00 - 08:30 Melbourne. That's where I'm disclosing where I'm going to be buying my next investment property if I choose to buy. Um, but I want to buy in Melbourne. It's just if I can can make it happen, that's there. I was doing some of the on the ground leg work over this little uh period and there was a lot of like really positive things to see. But one thing I picked up is Melbourne does housing supply a little bit differently to Sydney. A lot of these suburbs, they actually have some infield development there. Like you can see people building some homes in and around sporadically
• 08:30 - 09:00 between suburbs. You see these medium low-rise apartments spread across Melbourne kind of everywhere. And it does housing supply better than city. All the measured data tells us this. When I went to Frankston, I didn't notice any tall cranes or anything like that going out, but I didn't see too many housing supply type things just at a visual sense. Uh, is that something you may have noticed as well? Absolutely, man. And that's one of the reasons we buy in some of these pockets, right? Why am I talking about Frankston specifically or why are we talking about Frankston specifically? Melbourne is a
• 09:00 - 09:30 huge market. There are so many different pockets of Melbourne, right? So when someone sort of broad brushes Melbourne, that doesn't really give the actual picture because everyone's talking at an aggregate level 100%. But when you get down to the suburb level, yeah, Frankston really doesn't have development happening. There's not enough for the demand that there is. It's literally just turning over the existing stock. And a lot of that stock is just, you know, being held for so long. It doesn't come up very often. So when it does, you're like, "Wow, okay, there's 20 people wanting to buy this one house." And suddenly and the demand
• 09:30 - 10:00 just increases and like the the price points just increase and Most of the competition is actually coming from owner occupiers, right? And owner occupiers, what are they? They're emotional buyers. So, they will pay $10,000 more so they can get into the market, right? They're they're getting into their first home buyer scheme and all the schemes that are happening. And this is a market that is rampant for that. So, it's um that yeah, I think what you just touched on visually what you're seeing that there is not a lot of development happening. Yeah, we can see that in the data as well. It's like building approval is like 0.3% or
• 10:00 - 10:30 something and that's basically nothing. That's That's not That's not an actual number. One person is building a duplex there. Exactly. That's right. Yeah. So, it doesn't actually mean anything. But Makes me a bit sad. You just said that 20 people are trying to buy there. And when I went to Frankston, guess what I did? I drove past and I picked I'm like, "That one? That's the one I want." But you're telling me 19 other people have already done the same thing. Damn, man. Uh cuz I had put Frankston really high on my like uh my own list of and a few
• 10:30 - 11:00 particular properties. There was this one. It was a commercial property actually. It was a commercial/ retail property that's there on the corner right next to the beach across the road from the car park. Bit run down, a bit dar like a bit like what's going on here? And I look at it and I've been to Murba for a long time and it's been dar and horrible for a long time and then it's just it's just the best position. A beautiful corner sort of lot with frontages everywhere and walking to the beach and park and where all the foot traffic is. I'm like that should be a tower. I look at that as being like that
• 11:00 - 11:30 should be a beautiful beautiful shopping precinct or something like that. It makes sense and Melbourne's got this huge population growth story that is going there over time and Frankston is unique. This is what I like about it. It's unique. Melbourne doesn't have many beachside pockets. No, it doesn't, man. And and that's what I love about it. But the other part that I like about Frankston is actually there are pockets in Frankston because you got to be careful with Frankston, right? There are there are it's a beautiful part. Again, we're talking about Frankston at an aggregate level, right? Frankston works and if you buy in Frankston the the
• 11:30 - 12:00 chances are you're going to do quite well but then there are properties that are going to do better. Not every property is going to go up the exact same amount. There are properties that are going to do better. So I actually before we jumped on this podcast actually you know contacted my um local Melbourne specialist who you know works full-time and buys only in Melbourne for for our clients. I asked her to give me a couple of streets that we've been buying in which you know really will see that uptick way more than some of the other pockets. the owner occupy streets. That's right. James Street. Yeah, that's right. There's James Street, Beach
• 12:00 - 12:30 Street. You're going to you're going to tell people the sub the house there. Go buy that house. All right. All right. I'll go find something else to point out. Okay. Go. But you have a team now, so that's different. So, give it away. Frank Street, Bondi Avenue, Coogi Avenue. So, some of these some of these places names, they are real names. Bondi Avenue and Coogi Avenue. They've named it after the eastern suburbs of Sydney. I love it. That's right. the um so when you sort of we we are picking up stock in some of the best pockets of Frankston. So if you can imagine if you sort of think about the Frankston story yes Frankston is
• 12:30 - 13:00 going to do well but there are certain pockets they're going to do better because there are more owner occupier appeal because you know there's an 80 20% owner occupier ratio to rental ratio on that particular street. So it's not just hey let's just go buy in Frankston you can and likelihood you will do well but really where I think where we're seeing the advantage is we're trying to pick up stock in some of the best parts of Frankston and Caram Downs and some of the other pockets as well. So it's very exciting man. I think it's probably the best suburb or area I would say in
• 13:00 - 13:30 Melbourne where you can still pick up a house for under the 750. 750 750 I think 750 gets you Yeah, absolutely. 750 um is a minimum. Yep. Minimum would be 750. Look, if you want to get into like the high 600s, you're going to have to put some sweat equity into it. This is a Darrow house. You're buying the crappy house. If you're willing to put that in, I would highly encourage you. Yes. Like, you know, let's let's go in with a 680 690 offer. We can still get away with those. It is getting harder though
• 13:30 - 14:00 because Tell me about the high school. What's going on there? Oh, the Franksville High School. That zone like a catchment area. I don't know what what's equivalent. Give me an equivalent Jerry Brook in Sydney. Isn't that good? Absolutely. It's one of the top schools in Victoria. Yes. If you can buy in the Frankston um high school zone, you are doing extremely well, but then you are paying probably $670,000 more than what you would pay like literally just right public school. Very interesting. Uh, so I get that for those that are listening being like who
• 14:00 - 14:30 don't have young children or children and be like why would I go pay $60 70,000 more to live in a school zone being like yeah that's probably fair if you don't have you're never going to use it doesn't make sense for you if you're going there as an own owner occupier as an investor you might want to be catering to these sort of uh people who are going to be buying those homes because that's going to have greater owner occupied demand I just moved like last year one of the big reasons why I moved was to be part of a school pocket or closer to a certain group of schools that suited my family. Uh did I
• 14:30 - 15:00 emotionally overpay for my property? Possibly as well. Like I have bought many properties in my life, but this was my owner occupier. It was my home. I was going to go there. I imagined whether my kids going to go ride a bicycle around and have fun there. I don't do that with my investment properties. I don't care. Like it's just numbers. This one wasn't just numbers to me. And I very much was very clear. I'm buying this property. That is what an owner occupier does. Yeah, man. I was the sucker. I'm the sucker. I'm the emotional owner. It makes sense though, right? Like imagine
• 15:00 - 15:30 you can pick up an investment property in that sort of pocket, the Frankston High School's own pocket 10 years from now. You know, people want to still send their kids to this high school. For sure. Of course, owner occupies going to come to you and be like, "Hey, I'll pay you $60,000 more just for the privilege of being able to send my kids to this school," which I've heard is one of the top schools in Victoria and has been for a long time. So, did you go there? I did not. I didn't go to school, Fred. That makes a lot of sense. Yeah. You think all this thing I'm doing is is is a product of school work? No, it's not.
• 15:30 - 16:00 Um I went to Kawa. Kawwa. Good old Kawwa in Noble Park, which it's not miles away, right? It's not miles away. No, it's probably 20 minutes, half an hour. And for our audience watching, I also did spend some time in Dandong because AI did trash it in our last and I'm like, Danong flag. I love this place. Come on, Danong. Wait, weren't you telling me you were a little bit worried about it? I was 100% worried by my safety there cuz I was like ai am I even welcome here and I realized when I went
• 16:00 - 16:30 to Danong that it is probably the most diverse set of multicultural uh Australians that I have ever seen in an individual location. I absolutely loved it. I loved it. I felt the energy. I felt the vibe. I felt the Sri Lankan food followed by the Indonesian food followed by the Brazilian food and then the Colombian food all inside a little grouping and you know all walks of people and strains just having a go trying to make it happen and I was like I like Danong. It is good. I know you
• 16:30 - 17:00 said it's the worst. Not great for data. Great to visit. Not great for data but I enjoyed it. I great to visit for a couple of hours you know. Yeah. Yeah. I didn't want to stay. So I thought it was cool but I didn't want to stay. I wasn't going to buy a house there, but that was something to pick up. The one thing I wanted to talk about Frankston is uh we've talked a little bit about this about the Alpha Beta PR principles here. I'm looking at Frankston really high on my list. I'm actually looking at a higher budget price point because I look at it as a strategic place as as well. A
• 17:00 - 17:30 little bit like my Sydney lens. I look at Frankston as this is an area with a train station, with connectivity, with access to everything that you need to be at, and with lifestyle in a world that is changing rapidly with Australia being increasingly strategically positioned as the best place in the world to live in. We live in a like when we talk about the Australian property market, I think of
• 17:30 - 18:00 demand for Australian property as a global thing, especially in the year 2050 and 2100. As you go further and further forward, we become the world. Australia is getting scarcer and scarcer in terms of how good it is. It is becoming the outlier in the world as the best place in the world to live in. I think that's part of the co change that's happened. People are working out. Man, Frankston, in my opinion, could be one of Melbourne's best places to be over time. Y, you said historically it's one
• 18:00 - 18:30 of the worst. Over time, I could see it easily becoming like bright and less sands in Sydney. That's kind of what I see to it. It just needs a huge reinvestment in like more things going into it and that reinvestment happens around public transport, around infrastructure bases, and around lifestyle places. So that's why strategically I was looking at it being like can I find myself a nice strategic parcel of land that suits it that gets me a decent enough yield because in the long term you can get this alpha component where it's like the actual property can change over time at a
• 18:30 - 19:00 higher budget price point. That's why I was in Frankston as well. I think it makes sense. They're doing a massive hospital in the sort of through the lens of what you just said. They're doing a massive hospital expansion there. That's bringing in an influx of doctors and nurses into that mix. So, a lot of the like the tenants that we speak to or the property managers that we speak to, it's a lot of doctors actually applying for leases because they're working in this sort of, you know, Frankston Hospital, it sort of services this massive area in the sort of southeastern suburb um of Melbourne. It I don't know, man. I mean,
• 19:00 - 19:30 the idea that you can pick up something for 750K, like not that far from the beach, what does it look like? What does a 750k investment look like? brick home, threebedroom, two two bath, um 550 to 600, which I think is quite solid. A lot of them are so cheap. Yeah. And a lot of them, it's quite interesting because a lot of them are position um we're talking about a 4% yield. 3.8 to 4% yield. Yeah. Yeah. But if if you know what to look for, this is good. Everyone like you don't need Soy absolute whiz a
• 19:30 - 20:00 liar. We saw so many deals in these areas for sure. But this is good. this. You don't need to be a genius to work this out. It's that whole Melbourne story. Go check out our dozen plus episodes on Melbourne. Unpacking different areas, unpacking different locations, unpacking why, unpacking the reasonings, the timings, the macro, the micro. We've talked about it here. Now, we're talking about one of the best suburbs. And there's so many micro reasons here. When you strategically think about it over time, that makes a
• 20:00 - 20:30 lot of sense for this entire area. We've touched on caramdowns, we've touched on seafood, and now we're talking about Frankston itself, which is, you know, the main the hub point for this project. Yeah, absolutely. Yeah. And I think what one of the most exciting things for me is that if yield is a bit of a challenge, we're actually having conversations with clients now where we're picking up sort of houses that are, you know, sort of positioned quite strategically. Well, you can actually stand up a granny flat in the next couple of years. That adds, you know, $400, $500 to your income all of a sudden off the back of like maybe a $200,000 construction. That's a
• 20:30 - 21:00 conversation we're having a lot in Frankston as well. So again, if you sort of think about it strategically, you're putting in 750 maybe, maybe maybe there's a little bit of work to be done to that. Maybe you add another 200k on a construction loan cuz you're building, you know, a granny flat. Suddenly that yield goes from 4% to like close to 6%. Now you're talking about that it's it's a it's a different ball game now. So suddenly you're talking about a 6%, you know, like a regional market yield, but you're in a Melbourne metro market. So, a lot of good things happening. If you
• 21:00 - 21:30 can get into Frankston at that 750 price point, I say do it. It's very exciting. Um, for sure. So, let me quickly summarize here. Sure. You have an area. Oh, there's one more thing I want to talk about is Frankston has been strategically picked up by Melbourne as one of its activity centers that is going through that change. So, there'll be a lot of upturning of land. I do think Frankston will look very, very different when I go back again. If I don't go I hadn't gone to Frankston in a long long time if ever really up until recently. Uh I don't recall ever going there beforehand. So I expect it to look
• 21:30 - 22:00 very very different in 10 or 20 years which is exactly the lens that I look for when I'm purchasing and that is going to create a gentrification story because the Melbourne planning authorities have come up with a series of changes. They've also dropped the subdivision rules fairly recently from 600 to 550 for a subdivision there. But let's summarize all of the reasons why Frankston makes sense. So, we've got the Mailbour macro story. Check out all the other podcasts. Market cycle timing, good value, uh, relative yield beneficiary, if that makes sense. It's more affordable than other markets. It's
• 22:00 - 22:30 relative yield is now the same as a lot of other capitals where it was once the cheaper, the poorer yield it performed, but now it's the same as Adelaide and Brisbane. So, a lot of big reasons there. But Frankston itself, it is strategically located. It's got connectivity. It's got a hospital upgrade. It's got a lot of healthcare workers. It's got that Melbourne Planning Authority um benefit there. It's got a decent yield. It's got a good price point. It's got unbelievable future lifestyle perspective. Some of the economic change and behavioral
• 22:30 - 23:00 change that we are reading into the winds and we touched on here is increasingly Australia and Melbourne will be viewed as the lifestyle hub of the world. Increasingly increasing demand for it over periods of time. Uh and it's got really strong data with demand and supply and the supply is contained. Literally, I'm I'm It's like a ding ding ding ding ding ding ding ding ding ding. That's kind of what I feel when I'm talking about this area. It literally ticked every box. I mean, what box is there to tick after that? It's got the macro story. It's got the micro story.
• 23:00 - 23:30 You found a way to get y. You found a way to get yield as well. You found a way to get yield as well, man. So, there's there's really nothing. I'm trying to think of a reason why you wouldn't invest in a place like Frankston. Obviously, it is a higher price point, right? It is 750. So, if you're in that price point, if you're still sort of a little bit averse to like the Melbourne story because, you know, um you've heard that Melbourne's not the best place, I want you to rethink and I want you to think about places like Frankston because yeah, they're completely squashing all this um sort of negative sentiment that
• 23:30 - 24:00 Melbourne has cuz it ticks literally every box. I mean, tell me a box it didn't tick. You know what I think as well as we touched on like the the the dominoes of that investor demand, we're early into Melbourne. I've picked this up on a few strategy phone calls where it's like, am I buying Melbourne too late? Melbourne's grown like.5% in the last like freaking 12 months if that. And that.5% is in the last month alone. It's grown 10% over 5 years while everyone is up at 70 or 80%. Melbourne's growth cycle has not started. It is not
• 24:00 - 24:30 a hot market. It is significantly hotter than it was in certain pockets, but it's not a bustling hot market where there's no homes for sale and there's incredible incredible demand. Uh we've seen that in some markets in other it's increasingly hot, but there's ability to actually transact and buy a home. Correct. That you're early on into the journey piece. So, you're strategically positioning yourself for change that is happening. And then there's that big macro change with that interest rate cutting cycle and the diverse economy that Melbourne
• 24:30 - 25:00 has benefiting from that and being insulated to some of the global risks that are in place at the moment. Adi, I really enjoyed this episode. I think it's a really clever one that we went through. Uh for those watching, if I could ask a quick little favor, could you hit that subscribe button? That would be nice because that's something that we apparently need for YouTube to keep uh pushing our content to more and more uh Australians looking to learn about property. But also, if you haven't checked out our series, we've unpacked the biggest economic shift of 2025,
• 25:00 - 25:30 President Trump coming into the global economy and going ra, I'm going to do this and this and its impact on the Australian property market city by city and unpacked all of it. You can check all of that out on our YouTube channel if you wanted good insights into what is going on in the world and how it impacts Australian property.