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  • Profile photo of Matthew_WMatthew_W
    Member
    @matthew_w
    Join Date: 2009
    Post Count: 19
    arope99 wrote:
    I guess I should have asked in a more specific way. If we are going to buy a property, we would buy in the eastern or north eastern suburbs close to Adelaide city (Norwood, Maylands, Payneham, etc). Reasons are – easy for me to travel to/from work – close to city and shops – rental vacancies in those areas seems to be low Is it a good time to buy unit or small townhouse in those areas at this time? Hope people living and investing in Adelaide could help. I'm just trying to make sure that my final decision would be the best, with probably some backup plans down the years. Thanks everyone.

    Hey mate.

    I just came across this and (although a tad late in terms of response) thought I'd give my two cents.

    Mid last year I purchased a one bedroom unit at Rostrevor for $220,000. It fetches $250/week rent. I got caught up in the excitement of it being a buyers market at the time (and it still is), and now I've ended up with a negatively geared property. Big mistake! In Norwood, Payneham, Unley etc., you're looking at units in the $220-$280k range with rent ranging from $220-$285/week depending on the amount of bedrooms.

    After doing some more research, I found that the northern suburbs are probably your best investment. I'm talking Salisbury and Elizabeth in particular. I've seen houses and units coming on the market in $120,000-$160,000 range, with rent in the $220-$260/week range. Not only that, house prices have doubled (and some even tripled) in those areas in the past 10 years, as a lot of them are old housing trust houses that were sold off back in the day. They're on large allotments too – perfect for development in the coming years.

    This is from experience after a year of sussing out the market, so take it for what it's worth. But in terms of return – even capital gains – it's pretty low in the eastern suburbs. The north east is promising, but the further north you go, the better I reckon.

    Eastern suburbs = great place to live, poor place to invest.
    Northern suburbs = poor place to live, great place to invest.

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    I also agree that Option 1 is a real stinker.. I don't like the negative gearing strategy – it may suit you, but it's just not for me

Viewing 2 posts - 21 through 22 (of 22 total)

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