Hi all
Hope everyone is well
Just wanted to get your opinions on investing in and around adelaide?
we don’t hear from lot of people on the forum who deal in sa
Any opinion, good or bad is welcome
Thanks
Nicko
Losers make excuses, winners make sacrifices
Hi Nicko,
I think SA market will continue to grow on the back of strong demand for resources specially uranium mines.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
hi
yeah we have bought a IP close to a mine it is doing really well
we are now looking closely at the CBD and the beach side suburbs cause they are starting to thrive
Nick
I agree. Adelaide has had some good growth while the eastern states have gone backwards, and there doesn’t appear to be any signs of it slowing. I reckon it will continue to grow and there are still some good buys to be had. Cash positive could be a bit difficult though.
Markat
Email MePositive cash flow property can be found anywhere, if you look hard enough and do your research. Then weigh up the risks and decide if you think it’s going to work or not. We bought 3 in SA in the last 18 months. Positive cash flow in SA now seems to be near the mines or in Adelaide suburbs look in the northern or southern out skirts. Happy investing! [biggrin]
hi markat
I agree the market is really strong at the moment, just the other day there was an article in the paper saying auction rates were up around 80%.
we have managed to get some positive properties around adelaide you just have to be creative with what you are offering the market and do you research.
Think out side the box they are thereHi there everyone, [biggrin]
There’s plenty of money to be made in SA. My wife works for BHP and they’re doing absolute SH***FUL amount of fesasibilty studies on opening new mines in SA. The prospect is looking great!
We have bought TWO properties in the past 3 months and are looking to add to this. There’s not too many places in OZ where you can get 6% retuen within the metro area, even if its 20 kms from the CBD. I believe that there’s great growth prospects in Elizabeth/ Salisbury area.
I stand to be corrected by any experienced forumites who have had more investing expience than me.[thumbsup2]
Happy Hunting and may money follow your every investment.
Prak
Prakman
Hi, the real story is this. In February 2007, there’s a sudden spike in house prices across all suburbs in Adelaide.
The rental yield is 4.5% for most houses. However, the prospects for rent increases is very real.
I went to look at a house in Elizabeth Park last weekend. Even the agent was surprised at the crowds of people who streamed through the property. It’s solid brick, ex Housing Trust 3BR house on almost 800m2. Asking price $135000+
It’s below replacement cost even if it does require updating.
Elizabeth Park & Elizabeth East look to be the better parts. Like most residents of Adelaide, I’d vowed never to buy in Elizabeth. Just local bias, for the info of interstate forumnites.
As per normal, today looks good, tomorrow is anyone’s guess. The 3 properties I bought in the last 18 months have all appreciated 20-25%
Good luck,
Kum YinI dont have any idea of the SA markets, but does anyone have an opinion on Mt Barker
50million dollar shopping complex has been earmarked for Mt Barker but this has been known for a few months and I would suspect that many investors would have known way before it became public as well. Mining activity touted nearby also. Check out the SA govt planning website for information. Big Govt spending should always be part of research for an area.
I have been researching Adelaide for 4 months (I know too long but it’s my first) and have purchased the residex reports (rent and best growth) and both list the mentioned northern suburbs amongst the good buys. Also big infrastructure spend soon in northern area and new suburb created at Buckland Pk. I have a feeling that we’ll have to be quick so I am hanging out for my LOC to come through (thanks Qlds007).I have done some research myself with good results:
North of Adelaide, the new suburb being built is called Playford North. 300 hectares being developed at cost of more than a billion dollars. Will take areas population from 13K to 30K in next 15 years.
That will obviously increase prices in local area but even more intersting I think is the rental demand. Vacancy rates hit low at end of last year of 0.5%, agents are seeing upward of 10 people applying for each available property and bidding wrs breaking out to secure the property (some leasing 6 weeks out)
Developers in area offering rental guarantees to investors as they know they can easily fill the properties.
And with the new business, developments and new jobs being created the more potential tenants etc, to keep all our houses full and paying good money.
Certainly some positives I think there for us investors.
Cheers
Peter____________________________
Vision without action is a daydream. Action without vision is a nightmare.Hi Peter, I wonder if you’ve visited Playford North?
I don’t own a car & as far as I know, getting there can be rather difficult. I’ll check it out today.
I’d wanted to look at the builders’ display homes at Playford so I might do some recciing.
The rental wars in the news are mostly limited to places like Parkside where there aren’t many properties to be had.
Cheaper properties are also very easy to rent out.
I’d check the rental guarantee offers very carefully if I were you.
Good luck with your investments,
Kum YinDevelopers in area offering rental guarantees to investors as they know they can easily fill the properties.
Peter please be careful with these offers, developers don’t usually provide rental garantees because of confidence in the rental market, they provide them because they are trying to sell a property based on gross rental yield. If they increase the rent, they increase the sale price. The money they make in the inflated sales price overrides what they need to pay into it to meet the rental guarantee!
The bottom line is that these properties are sold to investors for an inflated sales price!!! Check the median in the area and get an INDEPENDENT valuation before you purchase.
I would be happy to give you a rental appraisal on any property you want to purchase, that is looking at the likely rents in the area based on historical statistics not speculation! That way you would be able to know how inflated the rental guarantee is as well
Investment Property Management
http://www.adprop.com.auWhatever you do in regards to researching the SA market, do NOT rely on articles in the local rag, The Advertiser. This paper is so far in bed with the real estate industry it's not funny. As soon as I read (yet another) article about how high rental demand is and/or how the market's starting to boom again, I know the market's actually slowing down.
Also, make sure you're buying where there are renters, not just first home buyers. All these new housing developments happening in the boom docks of Adelaide (Buckland Park is about as park-like as the Simpson desert) can easily end up in oversupply. No matter what the RE industry tries to tell you, SA is not experiencing a population boom and if there is a resources boom, then the only property that's going to benefit will be that located near the mines.
Anectodally, it seems we've got an influx of WA investors due to their market's downturn – but they should be wary. SA does not have all the factors that lead to WA's boom so you need to research well and not just assume you'll get the same capital gains. Just checkout the rental columns and you'll see many properties being advertised week after week – so much for that rental shortage.
And, yes, Xenia's right. A developer offering a rental guarantee is a sure sign you're looking at a rip off. Good properties don't need rental guarantees to help sell them.
good luck!
Carlin
What do you (investors in Adelaide) think about Morphett Vale and O'Sullivan beach?
Thanks
Here is a link to our buyer's agents website with a view on Adelaide.
http://www.creativerealestatesolutions.com.au/cgi-bin/page.cgi?id=112
Because this is a new company, we welcome any comments / suggestions / feedback that anyone may have.
My RE agent told me that he is getting a lot of enquires from WA investors and they bid against each other at auctions, making clearance rates at their highest. He believes they are the only driving force in current Adelaide RE market.
Difficult to buy a good value, but as for my properties, they are going up.
Gamay
Hi
I had a share of property in Firle near Norwood. It was in a rundown state when we got it, so we polished up the floorboards and painted inside and out. It was a great rental for a while. We eventually sold it and doubled our money after 4 years.
Happy hunting
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