SA Adelaide - long term opportunities?

Hi PC community!

My very first property post! I'd love to pick get some input regarding Adelaide and long term opportunities.

What do people think about Adelaide? For $500k ish, you can buy some decent houses/townhouses there...

My question is - for $500k, would you buy elsewhere? I've bought a townhouse in one of the blue chip suburbs for approximately $500k ish last year and I personally prefer blue chip / quality suburbs in Adelaide than say suburbs in Sydney and Melbourne - very far away from CBD. It seems Geelong and some parts of Brisbane should also be considered but I'm quite keen to get some input re: Adelaide. I'm in the process of getting things arranged for more purchase but do want to be "open minded" and get some insight!

And if you would consider Adelaide, would you recommend a house in middle ring suburb or townhouse in inner ring suburb (i.e. Parkside, Kent Town and Hyde Park) assuming same number of bedrooms? I know location is key, but quite keen to hear from those who do have properties in Adelaide!

Thanks in advance!!!

 

Definitely @NPSydney. That kinda money doesn't go far in Sydney, gets you a really nice standalone house in inner suburbs here though.

Personally I prefer houses for my investments than townhouses. They have better rental demand in Adelaide.

Being that its in nice areas (can only get into outer areas for that money in other cities), you're much more likely to have an easier ride with nice tenants etc.

 

Thanks D.T. !

Very interesting note re: house versus townhouses. Are there specific areas / suburbs you would target assuming ultimate goal is capital growth (as long as yield of say 3.5% - 4% ish can be achieved)?

I'm surprised with the lack of spotlight in Adelaide!

 

I dunno - apparently according the analytics on searches its one of the highest searched place for property at the moment.

Definitely agree with Davids view - houses over townhouses any day of the week. For a circa 500k budget this is going to likely be middle ring North/South.

You shouldn't have much of a property getting a property above the minimum yields you've noted - generally you'd be looking at circa 4% for a fairly average closer to the CBD and may be able to get that up with some minor renovations.

 

I just received an email from Knight Frank about Park SQ residences and the seminar is held in Sydney.

"Knight Frank Boardroom
Level 22, Angel Place
123 Pitt Street, Sydney NSW 2000
Date: Tuesday 25 July 2017
Time: 5pm
RSVP: Thursday 20 July 2017

This event will provide you with a brief overview of the Adelaide property market, understand the latest housing trends and statistics as well as discover why Park SQ Residences makes a solid investment."

 

Wouldn't it be amusing for them to spruik up the apartments, and then to get a valuation done by Knight Frank risk rating them as high due to oversupply of apartments, low interest in this type of dwelling in Adelaide etc.

 

Amusing indeed.

 

Don't touch townhouse/ apartments/ units in adl. Stick to standalone houses with big land content.

 

I bought a nice 4-year-old single level duplex in Adelaide (Torrens title) in the middle ring suburb of South Plympton about 2 years ago. It has had a nice little burst of capital growth already, apparently, and rental demand is strong. I've only had the one tenant but when it was first listed there were a number of applications to choose from. Absolutely trouble free and with the depreciation included it is cash flow positive.

 

This is a great little niche in my opinion in Adelaide. If you get into middle ring infill houses you can get a comparatively good yield, depreciation etc whilst still being in a growth region. The general stock quality in the middle ring is generally fairly average, so new builds will receive a decent rent/low vacancy rate as young professionals will prefer this over an original dated 50-60's build.

You'd probably be looking at similar levels of prices for this compared with a new build 2 bedroom apartment, without all the future heartache.

 

I agree with it being a great little Adelaide niche. I'm not sure if any other states have these nice courtyard duplexes that generally offer 3 beds, 2 bathrooms, two or three small outside spaces and sometimes 2 living room areas. It's just a nice set up and I can imagine they'd be good to live in. Very low maintenance. Sort of like a modern day terrace house. The housing style in Adelaide is very unique.

 

Yep. Investing here needs a different approach. Trying to buy here with a Melbourne hat on will get subpar results.

 

Adelaide set to have a national space agency?

 

Yes.

SA creates new space industry centre as Premier urges PM to announce national agency - ABC News (Australian Broadcasting Corporation)

 

I really admire SA's evolution as one of the most progressive states when it comes to technology, ideas for electricity, water, etc.

 

The upside of the mismanagement by the standing government for almost two decades is that they and all politicians locally have been extremely aware of their poor performance and the need to be active participants in revolutionising the economy. We just have to hope that they put their efforts to good use, and not more poor planning focusing on short term results at the expense of long term economic growth.

 

Hi @Corey Batt , when you day middle ring-does it mean 10-15 km from city centre ?

I am about to start my research on Adelaide as we are thinking to buy an IP there compared to Brissy.

I have already read your post on beachside suburubs of adelaide where @D.T. has also contributed byt my budget is under 500K will.ve buying may be in 6 months.

Thanks

 

I think you need to consider a different km ring in Adelaide, 15k is a long way out and Adelaide is a bit of an elongated shape. Maybe an ellipse?

I think property within 2-3km of North Adelaide is interesting, but would be wary of venturing too far north.

Renown Park for example.

Interested in why Adelaide and not Brisbane?

 

For me Adelaide has a good vacancy rate but not much else going for it i.e economic or population growth.

 

Thanks for your input @boganfromlogan , I will check it out what is available around (2-5KM) adelaide/north adelaide but it is going to come down to my budget. My aim is to buy and put it on rent and aim to get CG in few years.

In regards with Brisbane, I know some family friends who invested heavily in brissy a while back (prices were way down then) but have long vacancy periods and all sorts if issues.

I am not really into renovations at this stage and good looking homes in nice family friendly suburbs are getting expensive due to the recent push in CG.

Early 2016-I wanted to buy in Mango Hills but had to scratch the idea based on the above mentioned reason.