Hi, Looking at investing in a townhouse in Bowden, 3km from Adelaide CBD. Coming from Melbourne the prices are affordable, and the whole precinct seems to have potential. What rent can be expected from a 2 or 3 bedroom TH? Any general thoughts on expected growth? Thanks
That area is affordable,, Mike so is a good place to be looking. I am not sure that townhouses will have the same capital growth as houses on land in that region, but maybe look slightly beyond Bowden into Ridleyton, Renown Park, Croydon Park. There are some gems around there .. tiny suburbs that even Adelaide people don't know exist. Growth from a house with 3 beds and large block will be better than townhouses. Good place to start. I am happy to PM the gems that i know of ....
Issue here is oversupply - there's quite a lot of them. As per above, might be better with a house in the surrounding areas if the budget stretches that far?
As DT said, there is an over supply and lots of new units going up. A friend bought a 2br Bowden unit in the last month for low 300's. Seller paid about 390k brand new 2 years ago. Settlement delayed as purchase price didnt pay out sellers mortgage. Some bargains to be had, sure, but go in with eyes open and hope you don't need to sell short term. I'd go house in Croydon for a bit more $$ personally.
Thanks for the comments everyone, very valuable. What’s the long term rentability like in Renown Park and Ridleyton? And the estimated monthly rent for a 3br house?
I think rentability around there is good based on location and renters liking the proximity to CBD. I think you have to be slightly cautious of who you rent to, some are squeezing ppl in like sardines, adn then problems start. Only rent to someone who will live there, not someone looking to fill it full of their ppl. You can't overcharge the rent, cos options allow renters to move on quickly. So all in all, a steady approach will work best, squeezing too much rent will lead to vacancy (IMHO). My 2 bed house gets 360 consistently, stats say 390, but when i push i can't retain tenants. 360 with stable tenancy works for me.
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