Hi all! I was hoping to get some advice about buying in Adelaide CBD. I rent here in the city now and like it. I was looking at buying an apartment ~$395 (50% of borrowing capacity) to live in. I would get stamp duty and council rate concessions as well (off the plan). I like the apartment and location a lot. I don’t really want to live outside the city, as much as I’d love the extra space. “Rent money is dead money.” From an investment standpoint, capital growth is traditionally low in the city. And if going to be putting a heap of deposit cash and serviceability into it, I don’t think I can go ahead if it is a no growth area. I already have one little investment property with some equity. I definitely want more in good SA capital growth areas, I am not sure if should do that now instead. But I do want a place to call home. Just seeing if anyone has any advice?
I think you will struggle for investment performance with an apartment in any cbd, just because more and more are being built all the time. Prices stay flat because buyers have choice of many. Adelaide, unlike other CBDs, does have some standalone houses. Not sure if they're in your price range but having a slice of land is going to be much better than an apartment from an investment perspective. However, since its a place for you to live, then perhaps disregard the above or keep renting. You need to like where you are for your own sanity.
Best thing about real estate in Adelaide is the beautiful sandstone houses in and close to the CBD. If you are looking for that style, there is non better than what you find in Adelaide, and at a fraction of the price of a similar place in Melbourne or Sydney.
Thanks, exactly what I was thinking. CoreData says there's been a 17% rise in Adelaide units in last 12 months, not sure how accurate it is. I do really like the townhouses (some land), but it's hard to find a decent one in the city, most need some work, but they're liveable. With the apartment, the repayments would be $20/week more than renting. Maybe it makes sense from this perspective, taking a chance on it growing. It's in these new buildings, the 30+ storey ones, so it's hard to compare recent sales etc when it comes time for bank to value it.
Probably quite accurate but, like all statistics, is not absolute. It does NOT mean EVERY unit rose by that percentage. Some rose more, some rose less. Some possibly did not rise at all, or lost value. Maybe fewer cheaper units were sold in that time. Maybe a shiny new expensive complex was completed and all sales finalised. Marg
Definitely. Most units I've seen from established places have roughly the same sold price as their for sale price some 5 or 10 years later. Great yield on paper, but when strata is factored in it's about average. So I think I get the consensus. Any suggestions for inner city growth suburbs instead?
Adelaide’s CBD is among the 10 riskiest suburbs in Australia to invest in an off-the-plan unit or apartment, research firm RiskWise has warned. See story here: Adelaide's CBD among 'Australia's riskiest property investment destinations' - InDaily
I'd definately go the old crappy townhouse any day of the week. High rise apartments are high risk...with high body corp costs. You really pay for those lifts and pool. An old townhouse will give you a back yard and scope to add value. It'll also get rarer as time goes on (much like a house in the burbs) as the only thing that will be built from here on out is highrise.
I was in Adelaide on the weekend for work, Wow the waterfront looks amazing in the day and night.The enw COnvention center is out of this world. I went out Friday night the croud on Hindley St was less than desirable So many people smoking the pipes what every they are called I could not breathe. But the the city is gorgeous. Spent many years travelling to Adelaide its such a nice place.
Yeah Hindley street isnt all that flash unless you're a 17-18 year old or into shisha Depending on what you're into - east end of Rundle st is better vibe for restaurants / bars, Gouger St pretty good for chinese/asian food, but also a couple of other kinds of restaurants along there too. Hutt St for cafes / dessert places.
Advertiser ran a story just over a week ago: SA house prices holds strong as eastern states weaken - 27th October 2018 "Strong" of course means no change in Adelaide’s median house value for the September quarter, and: "While it was generally good news for houses, units and apartments didn’t fare so well, with metropolitan values dropping 3.79 per cent for the quarter, and 2.14 per cent over the past 12 months. City apartments took a bigger hit, down 12.66 per cent for the quarter and 15.43 per cent on this time last year."
