SA Adelaide thread continued from Somersoft

The lady who called me didn't mention any details to me, until I started barraging her with questions!

Have a read on the proposed DPA;

https://www.sa.gov.au/__data/assets...ad__Woodforde_Magill_Training_Centre_DPA_.PDF

Lots of information on the likely plot sizes, frontages, requirements, affordable housing etc.

To be honest I've had my sights on this development for a long time, and have been reading lots on the development. but ultimately the decision to purchase is going to based on price and if its only going to be a house & land package, which to me is a turn off.

 

Cheers for the link Bentley, i'll have a look at that tonight. If it's House and Land Package, then it's likely to turn me off too, as i really want vacant land and build what i want.

I've only been looking at it for about 3 months or so, a few of the initial submission designs looked nice, but obviously they haven't been taken up.

 

Pretty interesting to see Adelaide ticking along nicely, not really surprised.
How long can I keep saying 'nothing to see here'

http://www.corelogic.com.au/media-r...ing-values-9-8-higher-over-the-financial-year

Sydney QTR 3.1% YOY 16.2%
Melbourne QTR 1.9% YOY 10.2%
Brisbane QTR 1.4% YOY 3.4%
Adelaide QTR 1.8% YOY 4.5%

Even the article only mentioned Adelaide twice

Interesting to look at the grossed up returns

 

Beaten to it Brady!

 

Ahh there you go my apologies, this limited access at work is going to kill my SS/PC time

 

How do people justify investing there when generally speaking the macroeconomic factors are not that positive (employment/population etc.)?

This is a serious question I'm not trolling. Do people see movement and go 'ooh I want a piece of that'? What is the thought process here.

 

Macroeconomic is too broad. It doesn't explain the activity actually happening on the ground in certain pockets.

Any investment that pays its own way, has a state government actively trying to improve it and has a noticeable increase in demand is a good investment in my books.

 

Does anyone have any inside information around what is happening to proposed upcoming changes in the medium density zoning in the Onkaparinga Council?

 

In most Adelaide suburbs 70% of buyers are owner occupiers (only a few exceptions- the Elizabeth suburbs come to mind have a higher investor %) so the reasons for buying will always stay the same regardless of the state of the economy- that is emotional reasons rather than money, just wanting their own home/ upgrading/buying near good schools etc etc.

 

only what their website says. but im also wondering the same thing. I did speak to them a while ago but didnt get much info. im going to get DA for something, before the changes come in..not sure if changes will impact it but better to be safe imo

 

http://www.news.com.au/finance/real...-statistics-show/story-fndba8zb-1227314069515

Morphett Vale down south looks good.

 

God I need to hurry up and get my deposit together. Reading this gives me a fear of missing out!

 

This matches what I have found recently which is...

Those that have done really well in SA:
- New homes with new fittings in reasonable location (e.g. those new built houses in north east, west, south, less than 10km from cbd)
- Old character homes in good school zones (those like Norwood, Kensington, Unley, Parkside, Fullerton, etc)

Those which barely seen any growth over the past five years:
- Old, tiring houses but with decent land size (~800sqm, 900sqm, etc)
- Apartments

It seems like most buyers in SA are buying for own stay, rather than investing, hence pushing up the prices for new homes in inner city locations. As for old blocks, like those with big land size but old and tiring fixtures... you don't see much growth, which is depressing. Even in those good inner city locations. I guess not that many investors in ADL, compared to other states and that's kinda depressing.

 

Perception is reality - there's plenty of older properties with high land content which have done exceptionally well, likewise there are many which have floundered. Same has gone with new builds.

As always, I think the key is to find market inefficiencies and supply restricted properties - this is where the new builds in infill locations + old character homes have done well as there is a finite supply whilst an increasing demand. Large develop-able blocks in those same areas are shooting up rapidly as the development margin's are widening from resale values gaining healthy returns.

 

Hey guys.. just thought i would join in as im based in Adelaide..

Mmmmm after reading these post of now deciding whether to renovate and add value to my PPOR or buy another IP! Grrrr decision decisions!

 

just buy again mate..your future self will thankyou....then update ppor

 

Hmm if possible why not both?, reno your PPOR to add value and then reval to extract equity to buy IP?

 

Anybody actively looking at the eastern suburbs?

I know someone who bought in Kensington last year for only 520k 3 bedroom house on about 550-600sqm rents for $500 per week. Seemed like a good buy at the time and now I can't find anything that price so perhaps the prices have moved already?

500k is probably stretching it for me at this stage so have been looking for cheaper suburb like Rostrevor, where a house on decent block is around 450k still.

Do familys want to live in Rostrevor so they can enrol their kids in certain schools?

What else has it got going on other than being close to cbd?

 

I think I mentioned it over on Somersoft but I’d prefer just to buy a PPOR in the Eastern suburbs rather than invest there. It’s traditionally a good area for capital growth but the numbers don’t really stack up unless you’re willing to negatively gear. Personally I’d rather purchase 2 houses in either the Northern or Southern suburbs on subdividable blocks instead of purchasing 1 house in the eastern suburbs. For 500k you could pick up 2 houses and receive $600 a week rent plus have 2 future developments in the future and you could build 4 houses and sell 2 and keep 2 etc. With the East you’d be lucky to receive $500 a week rent from a 500k house and the councils aren’t very development friendly.

 

Already have a few in northern suburbs that are cash flow positive so don't have to negative gear next purchase. Haven't seen much growth in the northern suburbs at all seems everything is flat too much land available

Just want to see some growth over the next few years where land is scarce

Have also been looking in North eastern suburbs but most has already gone up too much already I think even in the last 12 months. And it seems for an extra 50-70k you can get closer to the city in the Eastern suburbs.

Not sure what to do. Back to the drawing board