SA Adelaide Southern Areas

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

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  1. See Change

    See Change Well-Known Member

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    Maybe Datto's visiting with a friend :eek::p:cool:

    Cliff
     
  2. jim1964

    jim1964 1941

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    My Ex Christie Downs tenants.
     
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  3. jim1964

    jim1964 1941

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  4. Joshwaaaa

    Joshwaaaa Well-Known Member

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    Not sure if anyone on here would have a greater knowledge on this matter but here goes. Now a few of our neighbouring properties (in Aldinga) are all owned by renewal SA and in some of onka 30 year plans it shows residential living stretching out to these plots probably about 1km out from the current old aldinga township. However on tuesday I noticed a heap of for sale signs pop up all on the same day, after looking in to it it's pretty much all of the renewal SA held land. No mention of future development sites in any of the adds, just looks like a straight forward primary production land sale.

    Lot 253 Old Coach Road Aldinga SA 5173 - House for Sale #124691542 - realestate.com.au
    Lot 257 Iverene Road Aldinga SA 5173 - Residential Land for Sale #201720974 - realestate.com.au
    Lot 53 & 54 Main South Road Aldinga SA 5173 - Residential Land for Sale #201721094 - realestate.com.au

    etc etc, there are 9 lots up for sale.

    Would this mean their future plans of possible residential housing stretching to these lots has changed or would this still be a possibilty at a later date, and they are just trying to get rid of some of there holdings? They still own the huge site behind OTR aldinga with future plans for 2000 houses (from reading the whole aldi aldinga DA).
     
  5. Corey Batt

    Corey Batt Well-Known Member

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    The government is trying to sell assets across the board to go to consolidated revenue, the same thing has been happening with ex-trust assets for a long while.

    Revenue SA (and the old government property trusts before it) purchase the surrounding swafts of land decades ago - then slowly over time released them for sale as development was needed - opening up supply and putting further revenue into the governments pocket.

    With the urban boundaries put in place, I wouldn't read into the sales as anything other than the State government scrambling for cash.
     
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  6. Dani82

    Dani82 New Member

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    Hi,
    Glad I've found this forum, and would truely appreciate your insights and experience.

    I have been advised by an investment advisor to buy my first invesment property in Morphette Vale:

    H&L package
    300 m2 land
    160 m2 house area
    3 bedrooms
    2 bathrooms
    1 single garage space
    Close to Pimbala Road and Concord Rd intersection
    Negotiated price around 380k
    Idicative rent potential: 340-370/w

    1- Do you believe this is the right price for such a new house in that spot? I have searched in Real Estate.com and other sources but get mixed results.

    The advisor has presented stuff to me about their recommendation so yes, I know vacancy rate is low in Morphette Vale, the demographics of the area and proximity to Christies Beach etc.
    However, I was initially consideting Brisbane and Melbourne to be better growing places for investment and havn't had issues buying investment properties up to 600-700k there if I can get better return on investment over the next 10-15 years. So,

    2- Do you believe SA (and Morphette Vale in particular) have advantages or growth prospects that I should consider in making the decision.

    Thanks
    Cheers
     
  7. D.T.

    D.T. Specialist Property Manager Business Member

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    Hi @Dani82

    Pretty happy with Morphett Vale as an area. Fairly good pricing, and better demographic than neighbouring Christie downs. Usually fairly easy to let most houses there.

    The part I'd question is the H&L package bit. I think you'd do a lot better with an established house.
     
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  8. Dani82

    Dani82 New Member

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    Hi @D.T.

    Thanks for the info. It's good to hear renting out is not a haedache in Morphette Vale, and that's definitely an important factor.

    However, I'm concernced whether:

    1- 380k is around the right price for such a house, and 2- how such investment compares to buying in cities like Brisbane and Melbourne that may have higher growth potential.

    Regarding the H&L package, I suppose the advisor is also focusing on the depreciation that can be claimed in the first few years if I'm not mistaken.

    Cheers
     
  9. Corey Batt

    Corey Batt Well-Known Member

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    "investment adviser" = generally a guy receiving a commission/payment from the developer or builder. No surprises that they then recommend you buy new stock.

    Could be OK, but I'd rather look at the overall investment options available than a sub 5% H&L package in the outer suburbs of Adelaide.

    Depreciation doesn't make anyone wealthy, it's just a minor benefit in the greater scheme of building a portfolio to achieve your long term goals.
     
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  10. Nemo30

    Nemo30 Well-Known Member

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    As DT said i think the area is great for investment. I personally wouldnt spend that much. For that price point I would be looking a bit closer in. I think theres value in the properties in the 2's which need a bit of work.

    Prices are definitely moving.
     
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  11. trinity168

    trinity168 Well-Known Member

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    @Dani82 -- I bought in MV mid last year, good tenants in place. DT helped with the interstate inspections. Land size much bigger than your H&L package.

    Depreciation benefits are great ... but not 100K great :)

    Hope that helps.
     
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  12. RetireRich101

    RetireRich101 Well-Known Member

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    There was a dude featured on API that was going to do some development in Christie Beach/Down.. anyone know he is making money?
     
  13. Dani82

    Dani82 New Member

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    Hi @Corey Batt @D.T. @Nemo30 @trinity168 ,

    Thanks for the insights and sharing your thoughts and experience. So:

    1- It seems that the price point of 380k for the new house in that area (considering land size of 300 m2) is high. Thanks

    2- Most of the responses have indicated that the prices are moving. If I'm not mistaken the average annual growth for Morphette Vale is around or below 5%.
    I assume most investments you go for, will have growth over 10-15 years. The point is how much and difference between investment options that one is going to spend their deposit and credit for. My conventional sense (which may or may not be correct as I don't have much experience with property investment) tells me if one invests in developing areas (or those close to developing suburbs) of cities like Brisbane or Melbourne, they can see higher growth levels and better return over the same period as a result of faster population growth, immigration, stronger economy etc. (and obviously prices are higher e.g. 550-700k which I don't have issue with)
    Do you think my senses are broken and there are other factors/potentials I need to take into account regarding Morphette Vale and SA in general?! ;)

    Appreciate it

    Cheers
    Dani
     
  14. Nemo30

    Nemo30 Well-Known Member

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    There's money to be made in Adelaide and in particular Morphett Vale, but you need to think outside of traditional buy and hold. You might see small capital growth rises but its not going to be on the scale of syd and melb.

    Where you will make money is being in a position to buy below market value, something that needs a small cosmetic reno.

    Buy the right property, not just any property. Know how you are going to make money on it.

    Speak to @DaveM about the services he offers. Many forum members have done very well from purchases he has made for them. He also project manages renos if you ask him nicely.
     
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  15. Dani82

    Dani82 New Member

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    Thanks all for the comments and sharing the insights.

    Cheers
     
  16. Brady

    Brady Well-Known Member

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    @Dani82 personally I would not be buying a H&L package in MV from a 'property advisor'. I would suggest they're closer to a 'sales agent' than an advisor. My Next guess would be that they only offer brand new properties, which they bang on about tax/depreciation, low maintenance etc. But then use general suburb data.

    I like MV but not for a brand new property, unless I paid wholesale cost (did the development myself). I believe you would get much better CG by doing as already mentioned, buying an established property that needs a bit of work, ideally with development potential.
    Something like this that sold not too long ago 32 Ackland Avenue, Christies Beach, SA 5165 - Property Details
     
  17. Xenia

    Xenia Well-Known Member

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    I agree
    If you are going to get the benefit from of brand new stock then be the seller not the purchaser.

    One of my investor clients has just developed a property we were managing for her for the past 5 years, knocked down and now 4 new ones being built in Morphett Vale. She will be selling 3 and keeping one almost free hold.

    The one that she will be holding will go from $290 per week in rent for the old run down house that was there to $380/$390 per week for a smaller but brand new house. Plus the benefits of a depreciation schedule plus low maintenance plus better quality tenants because it's new.

    But she does not have the disadvantage of having purchased at top market price from another builder.
     
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  18. 2FAST4U

    2FAST4U Well-Known Member

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  19. joel

    joel Well-Known Member

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