Gday All,
I need help from all of you for two most confusing questions I have.
1)Is it the right time to enter market for IP? I am looking to buy a property for approx 375K. I have around 15% of deposit. Should I wait for deposit to grow till 20% ?
2) Which suburbs should I consider? I have read number of articles which has confused me. Should I stay closer to CBD (Plympton, Camden park etc) or trust future infrastructure and take risk to go outside (Christie beach, Noarlunga) ?
There has been number of places mentioning about Southern suburbs of Christie beach, Noarlunga etc due to parallel southern express way development but looking at the numbers they dont show high growth in past 36 Months infact -ve in past 12 months.
Can I please also get feedback about Athol park. Is it a good buy? It has shown good growth in past three years.
Thanks heaps for your help in advance !!!
Hi AVS,
there a many variables involved in investing in property.
It’s always a good time to enter the market and there are many many markets right around Australia moving in different cycles.
Deciding on where to buy will depend on what your end goal is and what strategy you intend to employ to get you to the end goal.
It makes the road easier if you’re first IP selection is successful and structured correctly.
I purchased a property west of commercial road in Seaford last year for CG and value add with a potential future renovation. The markets been flat over the past 12 months but there are a number of transport infrastructure projects nearing completion such as the southern expressway duplication and extension of the railway out to Seaford that should greatly improve access to the area.
You can be sure, they’re not making anymore land by the sea and some of these properties lend themselves to renovation to improve both yields and value. There are areas within the Onkaparinga Shire that have been rezoned to encourage medium density so land has some scarcity value. It has great lifestyle attributes and opportunity for baby boomers and FIFO miners.
There is a lot of talk about Adelaide benefitting from the opening of the Woomera Prohibited Area and BHP’s Olympic Dam Mine. Some are talking about SA taking off similar to WA and I suppose time will tell. At the end of the day, property is a long term investment and I don’t think you’ll loose buying into Adelaide and who knows maybe it will take off once all this mining comes on line. Happy days!
Jack
Hi AVS,
Now is the perfect time to buy…………………..
I agree with Jacks points,although i wonder if the duplication will result in property prices skyrocketing as when it 1st opened,Jack will remember,houses were 80k,land 20k and that was in 2000/2001,not that long ago.It concerns me there is no industrial areas for employment down south,Lonsdale is a ghost town these days.
Every property magazine pinpoints Christies,Port Noarlungs to invest in,so guess where the interest goes………..dont follow the sheep.If i were you,come into Dover Grds,Sturt,anywhere in the Marion council,you will get something for the money you want to spend,if you do,you have a prime IP to develop at some stage,may not be tight now,but if you had the option later…………….its a no brainer.
Athol Park????????????? go for a drive and have a good hard look…………………..Jim
JT7 wrote:Hi AVS,there a many variables involved in investing in property.
It’s always a good time to enter the market and there are many many markets right around Australia moving in different cycles.
Deciding on where to buy will depend on what your end goal is and what strategy you intend to employ to get you to the end goal.
It makes the road easier if you’re first IP selection is successful and structured correctly.
I purchased a property west of commercial road in Seaford last year for CG and value add with a potential future renovation. The markets been flat over the past 12 months but there are a number of transport infrastructure projects nearing completion such as the southern expressway duplication and extension of the railway out to Seaford that should greatly improve access to the area.
You can be sure, they’re not making anymore land by the sea and some of these properties lend themselves to renovation to improve both yields and value. There are areas within the Onkaparinga Shire that have been rezoned to encourage medium density so land has some scarcity value. It has great lifestyle attributes and opportunity for baby boomers and FIFO miners.
There is a lot of talk about Adelaide benefitting from the opening of the Woomera Prohibited Area and BHP’s Olympic Dam Mine. Some are talking about SA taking off similar to WA and I suppose time will tell. At the end of the day, property is a long term investment and I don’t think you’ll loose buying into Adelaide and who knows maybe it will take off once all this mining comes on line. Happy days!
Jack
Thanks for your comment. My strategy is simply, looking for capital growth at the same time, descent rental yield. At this stage, I am cautious in risk taking being my first property hence was thinking about being close to CBD. The only problem then is to pick option of either buying good house nearly new in suburbs bit far from CBD or buy a unit close to CBD.
I agree there are lot of opportunities in Adelaide, but to search the one with most ticks is difficult one for me. But me being new in game would be the major factor in it. But will try to get as much information I can and will get started !!
jim64 wrote:Hi AVS,Now is the perfect time to buy…………………..
I agree with Jacks points,although i wonder if the duplication will result in property prices skyrocketing as when it 1st opened,Jack will remember,houses were 80k,land 20k and that was in 2000/2001,not that long ago.It concerns me there is no industrial areas for employment down south,Lonsdale is a ghost town these days.
Every property magazine pinpoints Christies,Port Noarlungs to invest in,so guess where the interest goes………..dont follow the sheep.If i were you,come into Dover Grds,Sturt,anywhere in the Marion council,you will get something for the money you want to spend,if you do,you have a prime IP to develop at some stage,may not be tight now,but if you had the option later…………….its a no brainer.
Athol Park????????????? go for a drive and have a good hard look…………………..Jim
Jim
Thanks for your opinions and help regarding your comments. I have already started my prep work for looking for properties. I just wanted to make sure I am on right track with time.
As I mentioned, I am trying to be cautious for my first IP, hence thinking not to go too far from CBD.
Can you please give your opinion regarding Athol park? I am not located in Adelaide, but looking at the facts and figures It looked like a good option to me as can get houses not too old for descent price and it being close to Woodville, I am expecting it to perform good in next few years.
jim64 wrote:Hi AVS,Now is the perfect time to buy…………………..
I agree with Jacks points,although i wonder if the duplication will result in property prices skyrocketing as when it 1st opened,Jack will remember,houses were 80k,land 20k and that was in 2000/2001,not that long ago.It concerns me there is no industrial areas for employment down south,Lonsdale is a ghost town these days.
Every property magazine pinpoints Christies,Port Noarlungs to invest in,so guess where the interest goes………..dont follow the sheep.If i were you,come into Dover Grds,Sturt,anywhere in the Marion council,you will get something for the money you want to spend,if you do,you have a prime IP to develop at some stage,may not be tight now,but if you had the option later…………….its a no brainer.
Athol Park????????????? go for a drive and have a good hard look…………………..Jim
Don’t want to be splitting hairs Jim but those figures in relation to Seaford are not accurate a quick check on rpdata will confirm that. I’m assuming you may have been referring to those less salubrious suburbs in the Onkaparinga shire?
My property last traded in 1995 at $99k. I picked it up for $316k and the registered land value alone is at $180k.
The above posters seem to be talking about capital growth returns. In terms of good rental returns, I found that up North is where good rents are, and houses are dirt cheap – near Elizabeth and Salisbury way.
It's easy to find a property in the $130-$160k range that are getting rents of $220-$260/week. At least one or two come on the market every week.Correct Jack,i was referring as in your post.It still concerns me the lack of industrial areas down south,lots of new works to open it all up,but the travel may put people of for employment.Just a thought.
Jim
i think its a great time to buy
Just remember you make your biggest profits when you buy NOT when you sell
So negotiate well and buy right
I am really confused selecting the suburbs. I am looking for suburbs no more than 10 Km from city.
I don’t want to buy old houses build before 2000. Any recommendations for Suburbs ?
Is it a big deal to buy old houses which are renovated? I am worried that I will not gain much of tax benefit.
Finally is it good buying a unit with small land area or old house with big land area?
i would buy a house on the biggest bock of land possible, i dont like units
i would look more for the best deal and worry about tax advantages after that
i owned a house in Goolwa SA that was 30 years old that never cost me a cent in repairs
Hi
I will take a bit of precaution with buying IP in SA. We have a few here and found that SA tenancy law is leaning very heavily towards the tenant. Maybe we didn't get the right formulae but all our IP in SA is negatively geared. ROI isn't that great. CG may not be too bad especially for a property on the water. But we definitely won't be purchasing anymore here.
We have a property in the country area called Peterborough. The tenant wanted to break lease and when we said no, he complained to the Housing Commission on a repair issue which we were waiting for a quote from a tradie (it is hard to get one up that area). The Department came and went through the whole house with a comb. They wanted us to spend $50k on a $70k 50 years old house to bring it up to current housing standard. For a rent of $110/week, it is an impossible task for us to do. Even the council is supporting us on this, but no luck. The rental has been capped and the house is now slapped as "Sub-standard". We have a new tenant now who is very happy to pay more than what the rent is capped at but we can't so it is his lucky day!
We've learned our lesson the hard way. So just be extra careful on what you are buying especially when you aren't located in the area.
Nani
Email MeThe road to success is always under construction
Yes,the big problem buying rural.it is easier when you buy in the same state you live in as most people have a good knowledge of all the areas.The hard fact……………..cheap and old usually results in cheap rents,and expensive maintenance,in the long term.
Hear Hear
<br /
:-)” title=”>:-)” class=”bbcode_smiley” />Nani
Email MeThe road to success is always under construction
I agree SA may not be the best place for IP, but I agree with Jim that it is easier to buy in state you living than going interstate.
Buying biggest piece of land is the preferred option but I noticed, most of the big land comes with really old house 1960’s or so in budget I am looking for, hence I had second thought about unit. But I am still looking for house with more land in suburbs closer to city.
I am not really worried if it is couple year old, but with 1960’s or so property really worries me with maintenance.
Buying locally and thinking you “know the market” is the biggest load of crap out there.
So what if you spent the last 20 years in one suburb, to me that’s a disadvantage. Yes it can be handy livig close to an IP for keeping on top of renos or babysitting tennants but thats about all the advantage you will get.
Do your homework, chances are you arnt living in a suburb with 10% pa CG, so go out and find one. Don’t be afraid of buying an IP outside your area. I would reinforce this remark if you live in Adelaide as SA is flatter than other states. The 10km rule is a good one but that will limit you.
Also if you have the cash, stick to a LVR of 80%. If you really think you are gunna get big CG then the extra leverage might be worth it. But by the sound of things you might compromise location for less risk being a first IP, so if you don’t get a decent CG then the mortgage insurance might eat into the earnings.
I want to buy a home at there and I think this is the best time for me to buy a home. In terms of good rental returns, I found that up North is where good rents are, and houses are dirt cheap – near Elizabeth and Salisbury way.
:-)” title=”>:-)” class=”bbcode_smiley” />
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