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  • Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    I’ve personally been investing in Adelaide for a number years and have built a substantial portfolio – primarily cash flow positive deals. In the office we find there’s a huge influx of investors looking at Adelaide at the moment, particularly coming from interstate due to the strong fundamentals.

    Anyone else investing in Adelaide?

    Personally I prefer to buy cash flow positive, renovation/distressed sales properties. An oldie but a goodie for example’s that I’ve bought:

    Smithfield Plains:

    Purchased for $145,000 in December 2012.

    Before
    After

    Spent 10k on renovations, revalued at 180k. Have since had it revalued earlier this year for 195k. Small numbers, but the yield is great:

    Current rent is $270wk, representing a 9.06% yield off purchase price + reno costs.

    I’ll post up a few more of these when I get the chance, but it’d be great if anyone else has any of example’s/experiences that’d be great if you could contribute.

    • This topic was modified 3 years, 11 months ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    Hiya,

    Nice thread.

    Adelaide is pretty good for cashflow positive deals which fit Steve McKnight’s formula.

    I have a portfolio full of these but here are a couple of more recent examples:

    Craigmore:
    $175,000 purchase, had a sitting tenant paying $220 per week which I recognised was under market. Their lease ended within a couple of months, let them out and got another tenant paying $250 which is increasing to $255 this week. This is 7.5% yield on purchase. Nothing spent on it at all.

    Elizabeth Downs:
    $250,000 purchase for a pair of semis on 1 title. Has sitting tenants paying $375 per week between them which is under market. When the leases finish will easily get $400 between them which represents 8.3% yield on purchase. No reno done but could achieve more rent if one was done.

    Morphett Vale:
    Client’s property. $190,000 purchase, $20,000 renovation done, I did a rental appraisal at $305pw. This is 7.5% yield based on combined purchase price + reno cost. It was revalued by the bank at $275,000 after the reno.

    D.T. | DT Property Management
    http://www.dtproperty.com.au
    Email Me | Phone Me

    Adelaide Property Management - whole Adelaide metro

    Profile photo of PetePete
    Participant
    @pjewitt
    Join Date: 2015
    Post Count: 50

    Living in Adelaide I’ve only ever invested here (to date at least). Am in the process of selling one of my IPs and will be in the market for a cash flow positive property when this one sells. Am very interested to see more examples.

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Hey Pete, what area is the IP that you’re currently selling?

    Any reason why you’re offloading it in particular?

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of PetePete
    Participant
    @pjewitt
    Join Date: 2015
    Post Count: 50

    Hi Corey, the IP that we’re selling is down at Aldinga Beach in Bayswood Estate. There’s a few reasons we’re selling but the main ones are:

    1. To free up some cash. We’ll do well out of the sale as we got in while land was still cheap down there. This will enable us to pay down our mortgage and look for another investment.

    2. While it’s given a good gross rental yield of around 6% (based on what we owe), there’s been little capital growth in the 8 years we’ve owned the property. Upon completion, the house was valued at around 290k, 8 years later it’s looking like we’ll get around 320k for it. Given how much land is available in that area I’m not expecting prices to skyrocket anytime soon, so will sell it and look for a better investment. It looks like we’ve got a buyer already without it even being on the market yet so hopefully it’s an easy sale and we can move on to something better.

    cheers
    Pete

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Good way to look at it Pete – especially if you can use the funds to pay down your mortgage, freeing up equity for further investing.

    Agreed – Supply/demand is certainly going to keep prices cool in a lot of these areas.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Another silly sale in one of my pockets of interest – Nailsworth 5083.

    http://www.realestate.com.au/property-house-sa-nailsworth-120664725

    Guide of 550k, expected to sell in the 575k range – sold for 640k prior to auction. Tiny kitchen which is falling apart, hallway bathroom with only a shower. Otherwise quite neat, but block too small to do any meaningful extension.

    Compare it to this: http://www.realestate.com.au/property-house-sa-nailsworth-119921301
    Which sold for 583k in June – arguably superior location, extended kitchen, full bathroom etc.

    Having a chat with an agent who made another sale in the area recently – found offers were 10%+ above their expected goal price, vendors are scrambling to sign in the absurd offers.

    http://www.realestate.com.au/property-house-sa-nailsworth-117760067

    5 days short of being exactly 1 years ago, same street – 520k.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of LiamLiam
    Participant
    @lblanden
    Join Date: 2015
    Post Count: 17

    Cheers for posting these examples guys. Its great to get an insight into what to look for and where.

    :D

    Profile photo of Matt McLeanMatt McLean
    Participant
    @matt-mclean1
    Join Date: 2015
    Post Count: 4

    Great thread guys. Keep it alive and the comments coming. Are you finding much capital growth in the northern suburbs properties other than as a result of the renovations?

    Corey, would you be able to share what renovations you completed in your example above where you spent $10k and had the $35k+ equity gain?

    Looking forward to continue chatting with the Adelaide locals.

    Matt McLean | Rams Home Loans
    Email Me

    Profile photo of dtrain28dtrain28
    Participant
    @dtrain28
    Join Date: 2015
    Post Count: 27

    I thought about investing in the Northern Suburbs, put holding off due to the upcoming closure of Holden. Not sure of the impact it will have on housing up there.

    Currently I have 1 rental in Mt Barker. Purchased for $270,000 in 2010. After doing a 10K of renos (carport & pergola) it’s now producing $325 p/w, a yield of 6% on my investment. I’d imagine it would be worth $300,000 – $315,000 now. It’s an old housing trust home, and closer to the town than the new estates around. Lots of people are buying these types of houses (as they still have big blocks) to knock down & put 2 units/houses on.

    Profile photo of AdamWAdamW
    Participant
    @adamwatson
    Join Date: 2016
    Post Count: 5

    Hi everyone

    Newbie here – to both this site and the whole business of property investing. Came across this thread when looking for posts about my hometown good old Adelaide, great to see Steve’s theories being successfully applied here!

    To commence our property investing journey my partner and I were originally looking at buying a negatively geared property in a blue chip suburb (i.e. skirting the CBD) but have since seen the light and are now concentrating on acquiring a cash flow positive holding. Our plan to increase our cash/equity base is to buy, renovate and depending on outcome either sell or hold (rent).

    Having never renovated before and not really being a tradesman’s bum-hole :-), I’m keen to build up a reputable team of tradies and I was wondering if anyone here could provide any advice on people they have dealt with before in Adelaide or the best way to go about finding them?

    Also, I was wondering if anyone knows of any property investing groups holding regular meetings in Adelaide? Specifically groups containing everyday investors that don’t have a vested interest in flogging property or their services?

    Thanks in advance
    Cheers
    Adam

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    Hi everyone
    Newbie here – to both this site and the whole business of property investing. Came across this thread when looking for posts about my hometown good old Adelaide, great to see Steve’s theories being successfully applied here!
    To commence our property investing journey my partner and I were originally looking at buying a negatively geared property in a blue chip suburb (i.e. skirting the CBD) but have since seen the light and are now concentrating on acquiring a cash flow positive holding. Our plan to increase our cash/equity base is to buy, renovate and depending on outcome either sell or hold (rent).
    Having never renovated before and not really being a tradesman’s bum-hole :-), I’m keen to build up a reputable team of tradies and I was wondering if anyone here could provide any advice on people they have dealt with before in Adelaide or the best way to go about finding them?
    Also, I was wondering if anyone knows of any property investing groups holding regular meetings in Adelaide? Specifically groups containing everyday investors that don’t have a vested interest in flogging property or their services?
    Thanks in advanceCheersAdam

    Hey mate

    A few of us catch up every month or 2 at a pub or cafe for a bite to eat and a chat. Completely informal, no agenda or anything. Feel free to come along no matter where you’re up to in the property game.

    D.T. | DT Property Management
    http://www.dtproperty.com.au
    Email Me | Phone Me

    Adelaide Property Management - whole Adelaide metro

    Profile photo of AdamWAdamW
    Participant
    @adamwatson
    Join Date: 2016
    Post Count: 5

    Hey DT

    Thanks for your reply mate, much appreciated!

    Would be very interested in coming along – can you advise when and where the next meeting is please?

    Profile photo of ALJOALJO
    Participant
    @aljo
    Join Date: 2014
    Post Count: 3

    Hi David,
    I am in Adelaide, my new property manager is not proactive as the one before from the same agency.
    I always worried about using single person business as who is going to manage if they go on holiday or get sick. Previous property manager use to do the inspection every 3 months and send me pictures and check list. Now no news about inspection. My inve property in SA 5086.Do you have good tradies as I am looking for a property which need some renovation. Thanks in advance. Jo

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    Hi David,I am in Adelaide, my new property manager is not proactive as the one before from the same agency.I always worried about using single person business as who is going to manage if they go on holiday or get sick. Previous property manager use to do the inspection every 3 months and send me pictures and check list. Now no news about inspection. My inve property in SA 5086.Do you have good tradies as I am looking for a property which need some renovation. Thanks in advance. Jo

    Hi Jo,
    Feel free to send me an email at [email protected] to discuss further, but yes we do manage properties in that post code (in fact have enough people to look after whole metro so you can keep all your properties under 1 roof) and yes we do have good tradies on board. We’ve used quite a lot for both our own personal properties and for clients ones and the only the good ones get to stay.

    • This reply was modified 3 years, 6 months ago by Profile photo of D.T. D.T..

    D.T. | DT Property Management
    http://www.dtproperty.com.au
    Email Me | Phone Me

    Adelaide Property Management - whole Adelaide metro

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