SA Adelaide - 400K budget- Where to buy within 15kms from CBD

Discussion in 'Where to Buy' started by simplevalues, 7th Dec, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. simplevalues

    simplevalues Well-Known Member

    Joined:
    4th Nov, 2020
    Posts:
    257
    Location:
    Sydney
    Hi all,

    I have been thinking about Adelaide for buying our second investment property. could you please give suggestions on suburbs within 15kms radius which have good capital growth potential for 400K budget.
     
  2. boganfromlogan

    boganfromlogan Well-Known Member

    Joined:
    10th Jan, 2017
    Posts:
    3,332
    Location:
    Brisbane
    There are some suburbs - the 'park' suburbs near CBD that are worth havin a look at. Dudley Park Renown Park, Croydon Park. They all have 'park' after them, i think that there is some historical reason. sefton park a bit rich (more than 400s), but some others are OK.
     
    brian08 likes this.
  3. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    308
    Location:
    Adelaide
    Hi @simplevalues!

    My advice (always) for people interested in the Adelaide market:
    1. Buy the biggest block of flat Torrens titled land that your budget can possibly afford (capital growth here favours a larger land component).
    2. The dwelling on it must to be structurally sound (obviously!) and preferably brick (which is the predominant stock anyways- you don't see many hardy plank/asbestos clad houses here, but I'd avoid these, unless you have plans to demolish in the near future).
    3. Three Bedrooms preferable over two bedroom houses- better rent return/ larger pool of potential tenants.
    4. Buy within a 10km radius of the Central Business District (again- this is for the best capital growth prospects).

    North:
    Gilles Plains, Paradise, Oakden, Northfield, Kilburn, Blair Athol
    North West:
    Angle Park, Ferryden Park, Mansfield Park, Athol Park, Cheltenham, Albert Park
    West and East;
    $400k unlikely to buy a Torrens titled house - maybe if your budget can stretch to $500,000?
    South:
    Edwardstown, Clovelly Park, Mitchell Park,
     
    SophieH, ndpjai, nyc1 and 7 others like this.
  4. Baker

    Baker Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    1,003
    Location:
    I like bread
    simplevalues likes this.
  5. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    308
    Location:
    Adelaide
    The Windzor gardens one is an ideal example of the type of property with good capital growth potential in Adelaide! ;700 square meters of flat land 9km from the Adelaide CBD, and a solid brick house (provided it's structurally sound, and provided you've got the capital to renovate it to a rentable standard).
    I like the suburb of Seaton, only 8km from Adelaide CBD, and it's all flat land, this Seaton property is only 343 square meters of land (someone has already cut off the back yard to make into a vacant lot)- but it's a good example of the cheapest way to get into the Western suburb market for a freestanding house- as Baker has pointed out, if there is no sewer/water running on the side street then this property may have been subdivided as a community title allotment (something any interested buyer can find out via the Form 1 sale documents).
     
    Last edited: 8th Dec, 2020
    simplevalues and Baker like this.
  6. Baker

    Baker Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    1,003
    Location:
    I like bread
    whoops, missed that in my 5 min scan.
     
  7. simplevalues

    simplevalues Well-Known Member

    Joined:
    4th Nov, 2020
    Posts:
    257
    Location:
    Sydney
    Thanks Erica for so many great pointers. Very helpful indeed. Yes the plan is to definitely buy a big block if we are buying. How is the rental demand in these suburbs?
     
  8. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    308
    Location:
    Adelaide
    Rental demand Adelaide wide is very good at present! Very low levels of rental stock, take for example the postcode covering the suburb of Gilles Plains (which is the graph below) currently has the lowest vacancy rate for the past 15 years. And a similar pattern to this is showing on heaps of Adelaide metropolitan suburbs. I'm a permanent property bull, but even the bears could agree that a rental market this tight will result in rental yield rises over the next12 mths.
    Source ; SQM Research - Property - Residential Vacancy Rates - 5086

    upload_2020-12-9_12-15-21.png
     
    Last edited: 9th Dec, 2020
    Baker likes this.
  9. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    2,304
    Location:
    Democratic People's Republic of Australia
    Assuming you're looking to fulfil those 3 requirements than you're definitely not going to find anything in those suburbs for 400k. You'll need 500k minimum.
     
  10. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    308
    Location:
    Adelaide
    Fair call, looking at prior sale prices is always a lagging indicator and won't reflect current prices achieved, the market may have moved out of range now. Anecdotally I'm hearing from multiple real estate agents a 10% increase in family homes just since June of this yr. We'll all look back to the covid lock down and kick ourselves for not picking up a bargain (I know I am now! but I was too worried about losing my job back then- which, thankfully didn't happen).

    https://www.realestate.com.au/sold/property-house-sa-gilles+plains-134196462
    https://www.realestate.com.au/sold/property-house-sa-northfield-131877814
    https://www.realestate.com.au/sold/property-house-sa-athol+park-132850886