Melbourne bargain hunters should look to Frankston North: Herron Todd White

Melbourne bargain hunting investors should seek properties in Frankston North, according to Herron Todd White.

“Our pick for ‘dirt cheap’ (if there is such a thing?) is in Pines Estate Frankston North (ex-commission area built in the 60s),” Herron Todd White says in its latest monthly report.

“This market remains below its 2010 peak and between $220,000 to $260,000 can get you a solid 60s brick veneer with three bedrooms, and one bathroom (they’re all pretty similar) on a good size block.”

They tend to yield around 5.5% to 6% and Herron Todd White says they can be cash flow neutral depending on the mortgage.

“Long term capital growth is expected from these low base price levels,” the report says.

“Case in hand is 37 Aleppo Crescent which is under contract for $236,000 with a good tenant paying $270 per week. Land size is around 600 square metres improved with a neat and tidy but original 3-bedroom, 1-bathroom dwelling. With an interest only loan this property is cash flow positive for most investors.”

Nearby 53 Rosemary Crescent was listed for sale at $215,000 to $260,000. It was recently listed for rent at $250 per week giving an approximate gross yield of 5%.

And nearby 39 Candlebark Crescent is listed for sale for more than $255,000. It was last advertised for rent at $240 per week giving a potential gross yield of 4.89%.