SA Elizabeth profiled in this months API magazine

Is it only for new homes now?

https://www.revenuesa.sa.gov.au/__data/assets/pdf_file/0019/7309/FHOG-TABLE.pdf

 

Yup

 

Yeah the first home changes were a little upsetting but i was one of the last apprentices to qualify for tools for your trade payments. You win some you loose some.

Hardest thing is to stay focused and motivated. Ill have to actively seek out the next hot spot in Adelaide when my time comes and im sure you lads will have some great tips.

One of the things i am most excited about is putting a team together and watching it all fall in place. Then ebay a hairpiece like Trump, wack on a few kilos like Reinhardt and set up my empire.

 

Sorry off topic - but what kinda apprentice are you Liam? And when do you complete or have you already?

Send me a message if you want tips on who to use for your Adelaide team.

 

Hi Liam B,

I've been prowling around Elizabeth properties; many of the [low-cost] properties on sale are semi-detached and are 800sqm+ (good for sub-dividing and squeezing in 2+ properties). If you buy one of these semi-detached IPs, you'll have trouble doing major changes to the property (demolishing for example) because of the next-door neighbour's house being attached to it.

If you plan to demolish and sub-divide in the future:

• You'll have to buy the attached house from thy neighbour (more land!! )
• Or, find a standalone property

All the best in saving for that deposit.

 

Reasonably balanced article which has touched on what I have experienced with my portfolio, and likewise what I've seen a lot of client's portfolio's go through.

Fundamentals stack up well if you understand the local tenant requirements - @D.T. can touch on this no doubt. No point having a deluxe semi in Davoren Park..

Running on quick numbers, the last 10 valuations I've put through in the Playford area have had a range of 10-35% increase since last valuation OR purchase, note the upper end is usually from short term purchase with renovations so a bit of a distortion. Generally with the purchase/reno properties I buy have a post reno increase of 24-29% increase after purchase price + costs.

A couple weeks ago I ended up at over at the commercial precinct at Playford Alive - quite impressive in size and quality. Gone are the days of cheap construction - real money is being invested in the projects:



Would I invest directly in the Playford Alive (Munno Para) section specifically? Not really. Supply will keep the prices tempered, so I will continue to focus on the medium density zoned old trust areas with 8%+ yields and development potential.

 

The property he linked is actually both sides of the semis on 1 title, so he doesn't need to check with neighbors

 

@Zii i have come across that golden fact among the ramblings on this site (thanks tho). The original property listed is for BOTH sides on the semi which means i can choose the tenants and live in 1 reno the other then swap.

@D.T. Im a qualified landscape gardener and am studying landscape design atm

 

Got any tips on where to buy cheap plants in adl? I'm after some capital pears and Japanese magnolias.

Sorry, I know off topic...

 

I'll start looking again in a few weeks. Unlike many, I don't foresee capital gains any time soon, but the yield is good enough for places to pay for themselves, plus puts a grand or two into my back pocket each year.

 

How can I make money in the Outer North?
http://www.realestate.com.au/property-house-sa-smithfield+plains-120538673


Purchase: 129k
Renovations: 15k (full retrofit + repair of Housing Improvement Order - already read this)
Reval Potential: 170-180k
Rent: 250wk
Yield: 9.35%* factoring in purchase price + renovation costs
Assuming a 90% LVR initial purchase, equity release at 90% post reno will be ~36.9k for a 170k revaluation.

Total initial deposit + 15k renovations = $31,234.

You effectively come out with more money than you put in and gain a 9%+ yielding property.

Then you jump onto the next one, rinse and repeat.

 

http://www.wholesaleplants.com.au/

Cheapest in Adelaide. It says trade only but they don't uphold the rule much.
Capitals in 400mm pots will probably set you back 50ish dollars. They are great for Manturian Pears, Prunis, Conifers, Weeping anything. Perfect for touching up those poo spots in your garden.

#Thread De-Railed

 

I was looking at this one the other day. Didn't realise the potential it had!

 

As was I Joel, just goes to show what potential places there are to uncover.

 

I have one similar to that renting for $255 so I think Corey is accurate. Cost to renov might vary depending on whether you can do any of the work yourself.

 

Plenty of those deals around - I think I've seen a dozen of those in the last two months.

So long as you have your finances carefully structured, you can keep purchasing, renovating and releasing funds ad infinitum (obviously reliant on servicing - but 8%+ yields will certainly slow the erosion of borrowing capacity).

 

I've never heard of a housing improvement order before - what has to be done? I'm pretty keen to get my hands dirty.

Only downside would be giving up the Affordable Homes eligibility.

 

Essentially a previous tenant was a bit of dibber dobber saying the property isn't up the scratch.

Few problems with the place - lack of fly screens, shower leak and windows jammed so don't close properly etc. They can be quite pedantic, but where there's a will there's a way.

Lots of non Improvement order options out there, but I think that will make this one go exceptionally cheap - it's already reduced it's price 3-4 times.

 

For you I think you'd get more out of AH Program to be honest.

HIA order is unique to SA. Basically a tenant has complained about the state of the place, and a building inspector has been out and "condemned" the place. Whilst the order is active, you're still allowed to rent the place out for a reduced amount or to get it lifted you have to fix it up and have them re-inspect.

If you email the agent he'll send you a copy of the report. If it's gotten to that stage, it's going to take some fixing, but those who put in the work get the potential rewards.

Alternatively, you could just demolish the place and build 2 new dwellings (same size and suburb as my one)

 

Is it worth knocking over and building 2?

Buying would be at 130k as stated before...

Each block would cost at least 80k before building.. Doesn't seem worth it