SA Adelaide thread continued from Somersoft

Discussion in 'Where to Buy' started by D.T., 18th Jun, 2015.

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  1. D.T.

    D.T. Specialist Property Manager Business Member

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    Still a unit though, most people want a house.
     
  2. JohnPropChat

    JohnPropChat Well-Known Member

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    Yeah. Houses there are not that overpriced. Sub-$500k for a decent one and semaphore park seems to be relatively more in demand.
     
  3. Guest

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    More of a townhouse, admittedly not for everyone, but could be for those wanting low maintenance and lifestyle oriented location.

    In my experience a lot of people (in my generation) just want a house for appearances, but then can't be bothered with upkeep so end up paying a gardener to look after things outside (which they rarely make use of) or let it go to crap and have dead/overgrown garden.
     
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Been looking for a PPOR for ourselves in the area, and let me tell you that Semaphore far is more desirable than Semaphore South or Semaphore Park. The latters are just slightly cheaper which lends itself to having more available buyers.
     
  5. Guest

    Guest Guest

    I know most investors here like land and houses, but here's an interesting chart highlighting an opportunity?

    Adelaide.png
     
  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Plenty of stats highlight units as better - eg the one you posted, but also average household size trends, average commute preference trends, etc.

    Our strategy, for both PPOR and IP's, involves houses. The only 2 times I'd have units would be if a) we built them ourselves, or b) we bought the whole block on 1 title.

    Could possibly take exception to the rule if an unbelievable deal came up, of course.
     
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  7. JohnPropChat

    JohnPropChat Well-Known Member

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    Good to know. What are the causing factors though? Is it just the the type of people that current live there? State housing? Amenities? Schools? Those suburbs are quite small - a dozen or two streets but by the beach ofcourse.
     
  8. D.T.

    D.T. Specialist Property Manager Business Member

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    The esplanade / jetty area, and Semaphore Rd, are very prominent strips that people would prefer to be near.
     
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  9. JohnPropChat

    JohnPropChat Well-Known Member

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    Too much uncertainty with units. Most of unit price growth seems to be from sold prices of brand new units as more and more units are built and sold the prices slowly skew up only to crash after a boom with excessive unit glut. Timing becomes more critical with units.

    The chart shows very little difference in house and unit prices - why buy a unit when you can buy a house for only a little bit more. The name of the game being CG and all.
     
    Last edited by a moderator: 10th Oct, 2021
  10. Guest

    Guest Guest

    I believe the Residex indices uses a repeat sales methodology to more closely track actual price changes.

    I'm not saying only buy units, just highlighting a gap that may close again in time, meaning units could be undervalued or houses overvalued in Adelaide (relative to each other) if the gap closes again as it has in the past. The price scales are different (not sure if you noticed).
     
  11. JohnPropChat

    JohnPropChat Well-Known Member

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    Didn't know that.

    Did notice the scales, if the chart indeed weighs repeat sales may be there is something there. But then again THs are also called units for stats purposes so could be skewed.
     
    Last edited by a moderator: 10th Oct, 2021
  12. 2FAST4U

    2FAST4U Well-Known Member

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    I remember reading a comparison graph between Adelaide houses and units that stretched back a lot further than 2006. The graph started back in the early 80s and the median unit price to median house price in Adelaide has always been around 75%. E.g. if a house costs 400k a unit costs 300k.

    I have a similar strategy to D.T. I wouldn't touch apartments or units basically because the general rule of thumb is houses depreciate, land appreciates. It's the land that's valuable not the house. Obviously you need to have a property on the land to generate income but it's the land value that generates capital growth. In the future when the Australian population grows unless there are satellite cities or more capital cities built (doesn't look like it since it costs the Government too much to build infrastructure and a lot of people would be reluctant to move unless there were adequate well paying jobs) I think apartments/units are going to be a dime a dozen in the future. Units are nice when they are new but what happens long term when they become old and outdated?

    Horses for courses though. If you like low maintenance living than there's nothing wrong with purchasing a townhouse or unit- it's still better than renting :p
     
  13. Bentley

    Bentley Well-Known Member

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    Treasurer Tom Koutsantonis forecasts $355m surplus, brings forward business tax cuts in Midyear Budget Review

    No Cookies | The Advertiser
     
  14. JohnPropChat

    JohnPropChat Well-Known Member

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    "Because the state’s economy is predicted to grow at about half the national average every year until 2019, Mr Koutsantonis has also been forced to slash expectations for jobs growth."

    What's happening in 2019?
     
  15. jim1964

    jim1964 1941

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  16. JohnPropChat

    JohnPropChat Well-Known Member

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  17. 2FAST4U

    2FAST4U Well-Known Member

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    "After predicting 1 per cent employment growth over the current 2015-16 financial year, or about 8000 jobs, the Government has downgraded its prediction to just a quarter of that amount. Jobs growth is expected to be one per cent or less every year until 2019."

    "Gross state product is forecast to grow 1.5 per cent this year, almost half the national average, and remain around that level until 2019. Inflation is expect to hover at about 2 per cent".

    One of the comments summed it up best-
    Selling the furniture to pay the rent. Nothing new for Labor.
     
  18. Corey Batt

    Corey Batt Well-Known Member

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    The new SA Liberal government will then be in power for a year. ;)

    As per the Unit vs house debate above, I think an important consideration is that within fully developed areas, 'traditional' house supply can only decline, whilst unit supply can exponentially increase. As usual, supply/demand will reward those who hold the stock which gain popularity without an ensuing increase in supply.

    *house supply not including subdivision courtyard homes in the example, as there is capacity in pro-development areas for this to continue on.
     
  19. sash

    sash Well-Known Member

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    Starting to scope out Adelaide.....like some of the areas close to city.......need to get boots on the ground....
     
  20. Corey Batt

    Corey Batt Well-Known Member

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    Bit late to the party for the inner ring, but better late than never!
     
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