Melbourne cheap homes: Frankston unit sold under $100k

News.com.au

8 hours ago

A Frankston unit has sold for the bargain sum of $99,500 in a deal where the buyer never even set foot in it.
The studio-style residence – one of the cheapest home sales in Melbourne this year – features an ensuite and small kitchenette and is part of a former retirement complex at 14 Sandpiper Place.
Fosterfroling Real Estate director Adrian Foster said he filmed a mobile phone video of the property and sent it to an investor, who then purchased the abode.
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The sale is the latest in a line of deals Mr Foster has transacted within the complex, after listing two of its other units and selling them at a similar price point during the past month.
While some of the building's units have kitchenettes, others do not have a sink outside of their bathrooms – although the complex has a shared commercial-like kitchen that residents can use.
Victorian law requires rental homes to have a kitchen sink in good working order.
Mr Foster said the unit that just sold has a longstanding tenant, while another was bought by a single man.
'He sold his home for about $500,000, bought a home for $100,000 and now he can put $400,000 into his super,' Mr Foster said.
While the five-figure Frankston listings in the ex-retirement home attracted a lot of buyer attention, they only suited certain buyers, he added.
'I think that somewhere in the permit it says that it's meant to be student accommodation but nobody cares about that,' he said.
'As an investment they don't grow in value too much.'
Most other similarly-priced Melbourne units are classified as student accommodation and often require residents to be enrolled full-time or part-time at a recognised educational institution.
Last year, Mr Foster had the listing for a Frankston apartment which sold for $99,000.
It was located within the ex-Ambassador Hotel at 325 Nepean Highway which was formerly used as short-stay accommodation and developed a reputation for anti-social behaviour and vandalism.
The ex-wedding venue was later divided into private apartments that nowadays usually sell for between $70,000 to $250,000.