SA Elizabeth North/Elizabeth Park

My parents are looking to sell out of Melbourne and reinvest in Adelaide to improve their cashflow. Pretty much to get the best return on dollars invested. Total budget might be around $600k to $700k.

They will be looking for decent properties with good returns and preferably a low likelihood of long vacancies.

So far they have mentioned Elizabeth, Elizabeth North and Elizabeth Park. I don't know these areas. Looking on re.com.au, there seems to be some decent houses for sale in Elizabeth North and Elizabeth Park. For example:-

13 Grove Avenue Elizabeth Park SA 5113 - House for Sale #121460866 - realestate.com.au

I don't know what the rent return would be on something like that.

I would appreciate some feedback on these areas or other areas to steer them in.

Cheers

 

Epic thread?
SA - Elizabeth SA Mega-thread continued..

 

TL; DR?

 

Goodyield, big blocks, bottom of the barrel tenants. Can be an option if budget is severely limited - may benefit from gentrification / stigma-removal over the long term.

With that budget, they'd be able to get into nicer areas with slightly less yield but less headaches. Say 3 in Salisbury LGA, onkaparinga LGA or a mix.

 

If it has to be in Elizabeth I'd personally avoid Elizabeth North and Elizabeth Downs- I'd be looking at East and Vale, but for the price of Elizabeth Vale as D.T said you could try and sneak into the Salisbury lGA. From a PM perspective migrants generally make better tenants and you're less likely to have the issues of not paying rent, trashing the joint etc. Best wishes with the search.

 

Thanks @D.T. and @2FAST4U. I will pass that on. It doesn't have to be Elizabeth. Salisbury LGA looks good.

 

Park yes
North no
Craigmore better than both
Salisbury better than all

 

Thanks @DaveM. I will let them know.

 

@Perthguy i have also started some research into the area. I settled on one in Salisbury Nth 4 weeks ago. It was a little renovator (see link) bought for $220K. I have shared my numbers in the thread. Salisbury could also be a good option for you parents.
SA - First time into the Adelaide market - My recent purchase

 

Do you like punishment?

 

@DaveM from your perspective which suburb do you think is better ranked in order?

• Vale
• Downs
• Grove
• Park
• East
• North
• South
• Craigmore
• Smithfield

Thanks in advance for your comments!

 

I don't know what that means. So I am assuming no?

 

Can't rank areas without a criteria. Chance of being shot? Prior CG? Future CG? Yield in descending order?

 

Good point. I doubt that the ranking for future CG and the ranking for current yield would be very similar.

How about rental return on dollars invested with a lower risk of vacancies?

 

Craigmore top
Smithfield bottom
Rest is like asking someone to rank different types of cancer in order of desirability

 

Just got off the phone to my dad. All he wants is a decent house in a reasonable area that will rent well now for a good rental return but also have future development potential and not be too expensive to buy. That's reasonable isn't it?

I'll take a couple of those too!

 

What price range? Minimum acceptable yield?

 

Sub $300k for the purchase price. Looking for $280-$300 per week if possible. They are prepared to do a cosmetic reno if necessary.

 

I agree. I like Salisbury too.

 

Christies Beach / Ingle Farm possibly.

Morphett Vale / Paralowie more realistically.

These are south / north options. Prob not anything worthwhile east. Units west if want to forgo the dev potential.