Hello,
Anyone have property in this area? Id like to know what people think of this area having potential flowing from a ripple effect from its neighbouring beach suburbs.
This suburb was formerly known as Hackham back in the 80's.Pockets of public housing mixed with private. Depends on what part you're interested in. Like all other Southern suburbs, it'll be going through a growth spurt. Since Colonnades expanded anyway and businesses moved onto Beach Road.
I've bought into Woodcroft for an IP, had it 2 years now and it's grown in value by about 30%. Morphett Vale and Christies Downs/Beach have started moving upwards too. You can still buy in for early 200's.I grew up in Morphett Vale from '76 – 92.
Hi, it changed names because the reputation got so bad. Says a lot, doesn't it?
The low 200s is probably based on replacement value. Look at it this way. It costs $160K all told to build a 3BR 2 Bath home. Add land value, transaction costs, GST etc etc. How much would a house cost? Anywhere in SA. I had been on this tune since March 2006 . It'd be interesting to retrace those posts really. There were a couple of gentlemen who said they could build a house for something far less.
So, to stick my neck out – I wouldn't bet on Huntfield Heights to go beyond the $250K mark by much. And this is only an opinion, anyone takes it on at his own risk.
Good luck,
KYIts the land that appreciates in value so why wouldn't it go beyond $250k??
Hi, the price has factored in the land value of at least $90K for the block, may be more or less depending on the house value. Land values in SA went up sharply between 2005-2007, specially throughout 2006 & it increased sharply in the Eastern suburbs in 2007. How likely is it to continue like that?
End of 2006, Seaford had 2 blocks at $75-80K. Hackam has lower land values.
Not very likely to skyrocket. I could be wrong of course.
KYok, thanks for your input KY.
Im guessing you are in Adelaide. So what do you think of the areas of Hallet Cove and Christies Beach which property commentators are suggesting as top pics? or the Adelaide market in general for this year?
Hi, Christies Beach has the better potential, both for capital gains & rental cause it has something that Hackam/Huntfield Hgts doesn't. The beach. A house for sale at Gulfview Rd was open last weekend. $285-295K. Might be worthwhile. Hallet Cove ditto. Has gone up a lot though.
Another reason why Christies & Hallet Cove offer better IPs is transport. Used to be long long long way out but now the train has express services, ditto buses express to Colonades, shopping center very near Beach Rd. Easy to rent. I actually WALKED from the train station to the beach. The strip at Christies looks very much like Glenelg used to look. Glenelg has million dollar beachfront properties. My sister has one of them.
Adelaide still has potential but people are spooked by interest rates concerns of course. Rental should still go up mainly because we have been so used to low rental & slow rent increases.
And don't count on prices coming down either. I have houses to sell & I'm not budging on price. Had a contract on one last week. Paid $223K, current contract price $370K [from 1 May 06 to now]
My outlook is this: some suburbs will come down a bit but some will go up. We're still adjusting. We won't all go up 28% like we did in 2007. Anything around $250K hard to find & not likely to be very wrong.
Good luck with your search & anyone takes my opinions, takes his own risk!
KyIn my opinion these areas are now overvalued significantly. They would have been hot picks last year, but by the time you read about them being hot picks the horse has bolted.
Hackham West was notorious in the 80's/90's.
hw
Notorious? as in rough/high crime area? Is it comparable to say the Elizabeth area? I hear people from Adelaide that say dont invest in Elizabeth for that reason.
Hybrid2007 wrote:Notorious? as in rough/high crime area? Is it comparable to say the Elizabeth area? I hear people from Adelaide that say dont invest in Elizabeth for that reason.The Elizabeth area for starters was predominantly settled from early 50's, (QEII) and is dominated by housing commission properties. There is a lot of 'fixer upper' properties there if you aren't phased by the socio-economic 'stigma'. I think median price there is around high 1's or low 2's. I haven't lived there for about 35 years.
Lot of transport/schools/shopping centres in the area. Main North Rd runs into Adelaide City. I think any area will have its pockets of rough/crime areas, no matter where you are planning to invest or live. It's what you make of an area.
My sister and family moved out of Modbury to Greenwith, a newish suburb. They were still planning on buying an IP in the Elizabeth area.Hackham is not that bad. Anywhere in SA (my opinion only) should do very very well. Take a look at the increase over the last 18 months in all suburbs and still real estate in general in SA is below replacement value. The current market seems to be driven by the mining industry and if WA is anything to go by??? who knows what will happen.
Take a look on realestate.com and checkout the towns south of sellicks ie myponga, second valley and cape jervis and see what has happened down there in the last month or so. Even Kangaroo island is increasing at a great rate of knotts…..Gold did hit $US1000/oz yesterday for a short time, great news for the mines opening up around Adelaide!!
SA, Hackham and Adelaide in general has my vote! My opinion only.
Thanks
MikeyMikey, since we both agree that Adelaide is a good place to invest. (im from Perth). Do you know much about town planning in SA? In WA we have an R-code system with specific densities attached. From what ive heard Adelaide is a bit more flexible.
Could you shed some light?
Hybrid 2007
The codes in sa are very simular to WA R codes.
The only experience that I have had in SA is on Kangaroo Island in Penneshaw and Kingscote. There doesn't seem to be much differance apart from a lot more flexible in interpretation from council. I would suggest going onto the SA planning commission site, all information is there, especially if you are familiar with WA's rules.
In addition to this I spoke with Southern Fleurieu Realty this morning about the movement south of Adelaide. They are really building alot of momentum in sales and capital appreciation especially in vacant land sales. A few months ago there was 50 or so blocks below $100,000 in the area now……due to developers finding the real cost of producing blocks from scratch the prices are galloping forward. So much so that the avaliablity of blocks below $100,000 is now sitting around 6!!!!!!!!!!!!!!
It would be interesting if there are any developers in SA who could fill us in with actual development costs of land there. If the replacement cost is around $130,000 then any purchases below this figure should return a good profit as stock levels are running very very low???? Food for thought? This is my slant on the situation do your own research prior to any purchases.
Cheers
MikeyHave lived in that area all my life. It did have a bad reputation in the 80/90's but has improved alot in recent times. Alot of the "trust" houses are now sold and getting renovated – this is continuing. Hackham and Hunt heights are better than hackham west. There are new estates around: seaford meadows, paringa views, the point. All with alot of quality 2 story houses (hills and ocean views). Close to the beach, transport and shopping centres.
Its definitately on the way up, anyone in the area will tell you…..
Bump.
Does anyone have any recent experiences with Huntfield Heights or Hackham West? Currently looking at a cash flow positive property in Hackham West?
Cheers,
A lot of clients have been purchasing in both areas over the last 18 months – as you’ve touched on the cash flow is reasonable with a few 7%+ yields. Renovation potential properties are abounds too, which are seeing decent revaluations if you keep to a tight budget and buy a neglected property. Another area which you may find a potential bargain is Christie Downs, but competition is getting fierce.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
The property I’m currently looking at is in good condition inside (so no initial works to get good rental return). Outside there is renovation potential for future resale. I won’t be offering overs for it.
Has the area improved?
It’s certainly getting better but there’s still a long way to go – it’s very much a working class area (nothing wrong with this for an investment).
If you can get a property which is in decent condition in the area and CF+, sounds like you’re onto a winner.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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