SA Elizabeth Property 2019

Discussion in 'Where to Buy' started by TMNT, 23rd Jan, 2019.

Join Australia's most dynamic and respected property investment community
  1. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,376
    Location:
    Melbourne
    Here is my personal experience, I am writing here as I have sold out late last year
    im sure the usual suspects on here will jump up and down and be offended

    I have recently sold my IPs in this area
    had mixed experiences with tenants,
    IP1: 1x tenant, paid on time every month, didnt hear boo, but was filthy
    IP2: duplex with IP1, in 5 years, 5-6 insurance claims, a never ending revolving door of tenants , police, sherrifs, threats, arrears, in fact sometimes I was doing insurance claims in pairs!
    IP3 tenant always late like clockwork with rent, but always 10-14 days, only paid after multiple reminders,
    IP4: I call the subleasing house, seems every tenant tried to sublease it, for some reason, even though it was just a normal home, a few ok tenants, a few bad tenants

    what got to me and I would recommend investors to consider carefully for this area and SA in general is the high transaction/ongoing costs involved

    Stamp duty is high for buying, management fee is very high, tradies I think are expensive,
    however council rates arent too bad, water rates arent too bad
    however with the new laws/changes recently for interstate landlords is quite alarming (even if nothing comes of it)

    my property manager was 99/100, my selling agent 99/100

    my experience
     
  2. Ben Chifley

    Ben Chifley Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    315
    Location:
    South Australia
    Tradies simply won't go to Elizabeth for fear of having their tools flogged, many agents will refuse to manage properties there. I know there's a fortune being spent there on a luxury hotel right next to Elizabeth City Centre but honestly the concentration of poverty in that area will continue to drag it down for years to come - if anything the poverty has gotten worse since Holden's exit.

    Buying an IP in Adelaide consider ANYWHERE but Elizabeth.
     
  3. Brady

    Brady Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,426
    Location:
    Adelaide, SA
    Do you own property in Elizabeth @Ben Chifley

    I have a property in Elizabeth East... had it for ~5years
    - Haven't had any issues in trades going there
    - Haven't had any issues with my PM
    - Have had the same tenants in there since I bought it and they pay on time

    I've heard many say Elizabeth is getting better, personally haven't been out there in a little while so can't comment. Would suggest it doesn't happen overnight, but there is definitely a lot of money being invested in the area - no one can argue with that.

    Right now I personally wouldn't buy again in Elizabeth only because I'm looking for growth a bit faster through development or reno.
    I think Elizabeth will still be another 3-5 years before there is some significant growth
    I would much prefer to buy in Para Hills, Brahma Lodge, Salisbury for a little bit more.
     
    ollidrac nosaj likes this.
  4. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,376
    Location:
    Melbourne
    I dont disagree that elizbaeth will clean up.
    I just didnt want to wait around and get grey hairs dealing with the issues,
    At one stage i was on speed dial to the pm
     
  5. Erica

    Erica Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    141
    Location:
    Adelaide
    @TMNT do you mind if I ask what year you bought into the area, and have you exited with a profit or not?

    My personal opinion on the suburb of Elizabeth is that there is just to much available land adjacent the suburbs to the North for the government to convert into residential and mass sell off to developers for house and land packages (Andrews Farm, Muno Para, Muno Para west). Just a huge amount of potential future supply to keep capital growth subdued for years and years (maybe decades) to come.

    Your thoughts on the future capital growth for potential for Elizabeth?
     
    2FAST4U likes this.
  6. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,376
    Location:
    Melbourne
    If i recall, the first 3 were purchaed 2012 to 2013
    The 4th one was 2014 or 2015

    3 x i sold at pretty much purchase price.
    1x 20% higher because of a substantial reno