SA Elizabeth North/Elizabeth Park

Thanks @D.T. They are just starting to look around really so just getting a feel for different areas. I will let then know and they can add these to the list. So far they are quite keen on North East, so Ingle Farm could work. I appreciate the advice.

 

http://www.adelaidenow.com.au/news/...h/news-story/2b6baddf65273e9dcbb85c274379620f

"Another resident, who did not want to be named, said it was the latest in a series of incidents in the area in recent weeks.

The woman’s front pavers were still spattered with blood from a man who stumbled to her front door after being attacked with a baseball bat.

“There was a stabbing on this street and the following week a fellow was beaten in the head with a baseball bat a few doors down and staggered here,” she said".

 

Haha

Not trying to defend the beth but stuff like this doesn't happen often around there.

The media making it a lot worse than it is.

Also funny that all of the teenagers charged were not from Elizabeth but surrounding suburbs

 

Parents we house hunting on the weekend. Dad's found a property he likes. Guess where it is @D.T. ?

9 & 11 Charmouth Road Davoren Park SA 5113 - Duplex/Semi-Detached for Sale #123977486 - realestate.com.au

 

Good luck

 

I am trying to guide them away from certain areas..

It's hard to argue with the yield. For a buy in price of $230,000 - $250,000 the rent is 2 x $210 with existing long term tenants. Good on paper. The issue is the risks, which we all know very well. Sigh.

 

Risk adjusted return

 

Ask for a copy of the ledger to see how good a set of tenants they are. A sales agent isnt going to say "OH THEY ARE A REAL TROUBLESOME SET OF TENANTS WE HAVE TO CHASE THEM ETERNALLY FOR RENT AND THEY HAVE 32 STAFFIES WITHOUT APPROVAL".

 

8-9% yield for lowest of the low in terms of tenant/suburb quality - I can see the attraction but if you were fishing from such low parameters you can still get similar yields on detached freestanding homes, which will give you a slight step up in terms of tenant quality and a lower $/sqm cost for the land component - which whilst not profitable for developing now is better than nothing.

 

Thanks @D.T. @DaveM and @Corey Batt - all good advice. I will be passing on all relevant information and do my best to guide them to better areas.

 

@Perthguy , I would recommend you put your folks in touch with @DaveM . He will be able to source them a good property which is both cashflow positive and in a better area then E park and it surrounds. I can personally vouch for @DaveM having used him for a purchase in the Salisbury area. @D.T. is your man for management , you probably won't get more hands on manager in Adelaide (this is from my experience with numerous managers in Adelaide)

 

Thanks for the recommendations and I have only heard good things about @DaveM and @D.T.. I won't be able to talk them into using a BA though. They love looking at property and buying property. The most I can do is give them feedback on different areas, which to look at and which to steer clear of.

EDIT: they are retired too so they get to look at property all day. I'm not jealous much

 

Agreed this stuff happens everywhere. Even Suburbs within 10km of the CBD.

 

More of a "news" story if it happens in rotten old Elizabeth

 

You're trying to downplay it because it was you who did it , right?

 

Haha I was at work at the time, unlike other Elizabethans

 

Mate be careful with this area and surrounds. Are your parents after growth or just high rent return?
From personal experience having a newer type home in davoren park for the last few years, no growth until recently, tiny growth,
Rent returns 6.1% on purchase price with included stamps etc etc.
Tenants are ok, most are ****. Only had 2 crap experiences in the past 4 years, insurance will take care of most, and first step is a good manager.
Hardly any vacancy, had 3 tenants in 4 years with the latest signed up recently. Time to find a better tenant is about 2-3 weeks with lots of applications, most are trash though.
Depreciation on the newer houses is heaps better than the old crap boxes, and I'm not sure how depreciation works with retired incomes?????
I understand you want development potential later, I just don't see profits in development to be worthwhile for a looooooooong time, I mean very looooooooong.
If you want growth, and good returns, and only an opinion, Werribee has units or small houses rent returns for 5.5%.
6%+ with a small Reno. Melbourne is hot dude, at least they get similar returns with growth right now, 100,000 people coming to Melbs every year, Adelaide 15,000.

 

That just means theres 15,000 smart people out there

 

Agreed. If I was smart I'd move to Adelaide

 

How many ppl leaving Adelaide each year?

If i was to guess I would say Adelaide has the same population as 10 years ago