Join Australia's most dynamic and respected property investment community

SA Adelaide Southern Areas

Discussion in 'Where to Buy' started by jim1964, 18th Jun, 2015.

  1. jim1964

    jim1964 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    674
    Location:
    At tha beach
    I have a IP in Christie downs which has shown good yields and capital growth.Any one else sensing the Big jump is not far off? o_O
     
  2. S1mon

    S1mon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    260
    Location:
    canberra
    DT says so,,,i believes him

    how goes the Colonaddes shopping centre expansion?
     
    D.T. likes this.
  3. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    3 Adelaide threads already, look out Brisbane.
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,600
    Location:
    Adelaide, SA
    There was an Adelaide general, Elizabeth one and southern areas one on old forum so these are just continuations. It also has better yield and lower entry point than Brisbane so everyone can have some fun.
     
  5. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    I'm not complaining if another city is getting more threads than the constant new Brisbane threads in the old one.
     
    larrylarry likes this.
  6. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    79
    Location:
    Adelaide
    My 2 IP's in Morphett Vale are getting appraised next Friday, so I will post then if the agent has any interesting market statistics or general observations worth reporting.

    On a side note, the tenant's I've got in them have been great and with slight rent increases are now yielding 7.15% with no major maintenance issues (touch wood), so all up, I'm happy with my 'Southern Adelaide' investing.

    Yeah, I'm feeling it too, been going to Auctions around 10km from the CBD lately and prices seem to have jumped about 10% for comparable stock 12 mths ago (I am looking at development sites though), don't know how long it will take to filter 25km further South though...
     
    Newfast, Xenia, Le. and 2 others like this.
  7. R377

    R377 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    310
    Location:
    Adelaide - Southern
    Adelaide Southern Areas deserves to get its own thread.

    Best beaches in the state. Schools, transport links, tafe, hospital, entertainment. Low vacancy rates and good yields. But best of all market has been quite flat for years. Definitely time to buy before the boom comes. Adelaide always comes after Sydney, Melb and Bris for growth and booms....

    I gotta buy another 3-4 this year for friends and family, have to get in quick before all the cashed up equity Sydney crowd get in....
     
    Last edited: 19th Jun, 2015
    jim1964 likes this.
  8. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,600
    Location:
    Adelaide, SA
    Number of bedrooms, bathrooms, garages and condition of your Morphett Vale places please Erica?

    7% yield is fairly standard for Adelaide, with 1%-2% more being available for those who buy under market or renovate.

    Coming to the Perth meetup on Saturday? If so, want to discuss?
     
  9. R377

    R377 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    310
    Location:
    Adelaide - Southern
    Coming to the Perth meetup on Saturday? If so, want to discuss?[/QUOTE]

    I travel quite a bit around, won't be back in Perth for a while sorry. I grew up and still spend alot of time in adelaide southern subs ( I am here atm ). If you are serious about buying PM me - i know all the agents and streets, good/bad areas etc
     
  10. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,600
    Location:
    Adelaide, SA
    Ya, back and forward a bit between WA and SA myself at the moment, that'll settle down soon.
    Was going to offer my opinions actually, but learning is a 2 way street right? :)
     
    R377 likes this.
  11. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    79
    Location:
    Adelaide
    ,G'day DT

    new one built 2013, 3 bed, 1 bath, 1 carport

    old one, built 1981, previous owners upgraded whole interior about 10yrs ago, it could do with new carpet and some touch up paint, otherwise in excellent condition, 3 bed, 1 bath, 1 carport

    Hmmm, not sure I agree with you on that, I think 5.5 -6% yield is more the average for houses in Southern Adelaide (just stock standard buy and hold stuff, ofcourse people can manufacture a better return with a reno, or the elusive 'buying below market value'- which I have never been able to achieve!) but perhaps I just calculate yield/ rent return differently
     
    foxyleemoo likes this.
  12. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,600
    Location:
    Adelaide, SA
    Having only 1 bath holds this one back a lot. Did you build this one or buy it established? Probably rent it for about $330/wk

    Justification / Comparables:
    http://www.realestate.com.au/property-house-sa-morphett+vale-414813171 3x2 for $340/wk
    http://www.realestate.com.au/property-house-sa-morphett+vale-415929701 3x1 for $320/wk but on a main road

    In the older ones, of course 3x1 was expected. There's a few of these online at the moment and there's a fairly big variance, but personally I think the people at the upper are dreaming. It depends on the size of the yard and how much living space as well, though. If you wanted to get it filled quickly, I'd either tart it up a bit, or go lower end of the price range. Say $305/wk

    I'd say these are the comparable condition properties based on what you've described:
    http://www.realestate.com.au/property-house-sa-morphett+vale-408244187 3x1 for $305/wk
    http://www.realestate.com.au/property-house-sa-morphett+vale-415989769 3x1 for $310/wk

    Feel free to tell me if i'm close or far from mark, given i don't have full details at hand :)

    Yea, sorry you're probably right for the south. I still had my north hat on :)
     
    Erica likes this.
  13. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,173
    Location:
    Adelaide, SA
    Definitely right with this - I do see 7%ers coming from down South sporadically, but these are just some excellent buys that clients have managed to achieve.

    Hackham, Huntfield Heights and Christie Downs are the consistant suburbs which investors are targetting, and the contracts keep coming in nudging higher than the previous - watch this space.
     
    larrylarry, S1mon and Erica like this.
  14. jim1964

    jim1964 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    674
    Location:
    At tha beach
    I call it creative accountancy.
     
  15. ZachAnsel

    ZachAnsel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    110
    Location:
    Sydney
    Price range did move quite significant since last year..

    I plant to purchase again, but hitting my limit already. Need to think something creative or until wife back from maternity leave
     
  16. jim1964

    jim1964 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    674
    Location:
    At tha beach
    Nearly 2 years at Christie Downs,got the do i want to extend lease for another 12 months?????? Currently paying $320PW,plus water usage and supply,plus the building insurance,going up to $330 PW no problems.
     
  17. R377

    R377 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    310
    Location:
    Adelaide - Southern
    All ours are $300-$330 to long term tenants and we haven't put the rent up the past 2-3 yrs so $330 I think will be easily achievable...
     
    jim1964 likes this.
  18. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,600
    Location:
    Adelaide, SA
    How come?
     
  19. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    79
    Location:
    Adelaide

    Feedback from agent;
    -there are currently more buyers around than there is stock on the market
    -it is the low stock levels that is supporting the market (not the state of the economy, jobs levels etc.etc.)
    -lots of buyers around in the under $300k price bracket
    -the under $300k stock is selling quickly (about 4 weeks on market average)
    -lots of people attending open inspections and correctly priced properties receiving multiple offers
    -tenanted properties tend to receive lower offers ($10k plus) than properties well presented and available for vacant possession
    -over all about 5% capital growth across all properties seen in the area over the past 12 mths (some higher depending on individual characteristics of the property)
     
    S1mon likes this.
  20. Jamie_Monkey

    Jamie_Monkey Member

    Joined:
    24th Jun, 2015
    Posts:
    22
    Location:
    Melbourne
    We've been scouring pockets of Adelaide for months to find our next IP and have just gone under contract for a 3 bedder in Hackham. Aside from value for money, the main attraction was proximity to freeway, the beach and the actual property itself, which is on a decent sized block and offers a ~6% return.

    Is the south the new north?