SA Elizabeth profiled in this months API magazine

Hiya,

How many of you saw Elizabeth profiled in this months API magazine?

The TL;DR version:

Quoted from the magazine article (bracketed comments are my own)
1.0% vacancy rate vs 1.9% for Adelaide metro
3.8% year on year rental growth (this combined with the above means rental demand is great)
44% of the area as renters vs owner occupiers & mortgage holders
Median house price increased 15% in the 12 months to May this year
Last boom was in 2010 at $228k median (it's just now reached this again, so presumably this is the break out signal you'd use on sharemarket charts?)
Elizabeth itself has just 1,000 residents (Elizabeth itself is mostly the commercial hub, where one of the states largest shopping centres is) but the greater area has 60,000
Median rent is Elizabeth is $258pw at about 6.9% yield.
Nearby Elizabeth Vale has one of Adelaide's largest hospitals and average rent nearby at $265pw for houses or $201pw for units at about 7.3% yield.

Treasurer Tom Koutsantonis delivered the Northern Economic Plan ($93 million in 15-16 FY state budget) for a range of initiatives aimed at boosting economy in northern Adelaide and Elizabeth. Upon Holden closure in 2017, he promises to use all the levers at their disposal to support new and growth industries and stimulate the construction sector. A new Manufacturing Technology Centre will be established to provide a physical location for manufacturing and services businesses. Budget also signals the development of nearby Northern Adelaide Industrial Food Park to create more job opportunities.

Margaret Lomas contributed with (snipped down in length by me) "... worried about economic matters, including Holden closure. News like that often creates often creates a sentiment that doesn't necessarily ring true but it has a short term negative impact. ... In fact many of the residents of Elizabeth work in the city and other suburbs and will continue to do so even after Holden's closed". She also went on to say she owns 5 properties in the area and is about to bulldoze 2 of those to build 4 units on each.

Who else has invested or will invest in Elizabeth area? Any thoughts in general?

 

Isn't Liddabef meant to be Adelaide's second CBD in the future?

 

Yeah, possibly

 

haha i thought it was pronounced Lisbuf by the locals ?

 

That depends on how many teeth they have & whether they can annunciate the "s".

Prices have risen a fair bit in the last year or 2. You can no longer get a free standing house under ~150K.
The shopping centre has everything - used to always do Xmas shopping there (drove 3 hours, I'm a country bumpkin!) - also has bus and train links. 40 mins or so to the city.
There's a Cash Converters strategically placed near the train station.

I think the pub in the shopping centre closed down recently, didn't it? That can't be a good sign.

 

There looked to be quite a bit of building/construction out that way - I went out there when they were building the new skate bowl a few mths back

 

Is this like how Melton in Vic is meant to be a major satellite city soon ( for the last 30 years)...

 

Yeah probably.
I'm not familiar with Melton at all, but Elizabeth already has everything you need though - train station, shopping centre, schools, hospital, council amenities etc. Doesn't have a university campus but Mawson Lakes isn't too far away. What else would you want in a satellite CBD?

 

http://www.realestate.com.au/property-duplex+semi+detached-sa-elizabeth+downs-120849305

Im still 20 months away from having the deposit. It hurts

 

Stop going for 20% then you goose

 

*Mumbles*

 

How much longer for 10%?

Assuming you have some already, lets say you have 10% in 2 months time and 20% in 20 months time. That gets you into the market and you pocket 18 months of capital growth, rent, tax deductions, etc. You'll be buying your 2nd one in 20 months.

 

88% LVR +LMI is the sweet spot as mentioned in many threads/posts on how much should you have for deposit,use OPM to leverage and control twice the asset base to capitalise on future Capital Gains

 

Yup, breadth of asset base is important

 

Nah im still right at the beginning of my journey DT. Got 4g saved up and have budgeted for 1700 a month to go away.

Long ways to go mates

 

(((255k x 12%) - $4K )/ $1.7K) =15 months

 

@Liam Blanden
Everyone's journey has to start somewhere...the starting is the hard part..

 

Keep going young fella you will get there.

It took me 3-4 years of "hard" savings to get a deposit. Alot of users on here would have a similar story.....

 

First home owners grant?

 

Yeah he's eligible (hence why he linked an Affordable Homes Program property above), but it's nil for established properties in SA as of July last year.