SA Elizabeth Property 2019

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

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  1. TMNT

    TMNT Well-Known Member

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    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

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    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.
     
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  3. Brady

    Brady Well-Known Member

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    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.
     
  4. TMNT

    TMNT Well-Known Member

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    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
     
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  5. Erica

    Erica Well-Known Member

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    @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?
     
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  6. TMNT

    TMNT Well-Known Member

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    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
     
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  7. TMNT

    TMNT Well-Known Member

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  8. spludgey

    spludgey Well-Known Member

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    Who was it, out of interest? I'm very happy with RPRE.

    I've got six IPs in Elizabeth and am quite happy with them. Sure, at times there are issues, but having a good PM is half the battle.
    Not looking at selling any time soon.
     
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  9. wilso8948

    wilso8948 Well-Known Member

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    Supercar or not. A horrible incident that resulted in a young girl losing her life. Tragic.
     
  10. Ben Chifley

    Ben Chifley Well-Known Member

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    I was also pretty astonished to hear that someone from Elizabeth North (apparently) had a garage full of supercars. And yes, it was a terrible, tragic accident. Most people don't know how to drive those things anyway.
     
  11. Ben Chifley

    Ben Chifley Well-Known Member

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    City of Playford's average capital growth for 2018 was -4.7%.
     
  12. 2FAST4U

    2FAST4U Well-Known Member

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    Source?
     
  13. Ben Chifley

    Ben Chifley Well-Known Member

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    Your Property Investment magazine. Actually on second glance that figure is only for Elizabeth proper (not the City of Playford); other surrounding suburbs have had similar losses though:

    Elizabeth South -1.14%
    Salisbury -3.39%
    Munno Para -11.35%

    Not sure why Munno Para has plunged that much, might be to do with the large land releases happening out there?
     
    Last edited: 27th Jun, 2019
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  14. skater

    skater Capitalist -- www.skatepro.com.au

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    I'd agree that a good PM is key. We've got two in Elizabeth Downs. Although I'd sell if there was some CG, it's for retirement purposes, not dissatisfaction with the investment. They are a maisonette pair on separate titles & had several tenants since we've bought them. They seem to get a rent increase each year, & have had no issues with them, or the tenants. My PM is amazing, and a lot cheaper than other SA PM's from what I've seen, but he came from Western Sydney, so probably had good training on dealing with those that like to push the boundaries.
     
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  15. 2FAST4U

    2FAST4U Well-Known Member

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    It's amazing that growth has not been higher. With interest rates at historic lows a 300k mortgage only costs around $350 a week.
     
  16. Ben Chifley

    Ben Chifley Well-Known Member

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    Everyone who can conceivably qualify for a mortgage has already got one.
     
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  17. 2FAST4U

    2FAST4U Well-Known Member

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    https://www.saplanningportal.sa.gov.au/data_and_research/population

    upload_2019-6-27_17-13-55.png

    upload_2019-6-27_17-16-52.png

    I don't see Elizabeth doing much in 2019. Low population growth, the affordability of Salisbury, and new builds in surrounding areas (Eyre), constraints capital growth in the region.
     
  18. Ben Chifley

    Ben Chifley Well-Known Member

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    The "Committee for Adelaide" has completely the wrong solution to South Australia's problems. They recently proposed a special economic zone for regional South Australia where employers would be allowed to pay 10% less than award to migrants coming in on (what used to be) 457 visas; something similar is also going to be applied in the 'Top End' of the Northern Territory to try and stem the loss of population currently occurring.

    Pressuring wages downwards by rapidly increasing the number of people allowed into these areas will not help the current housing slump - it'll exacerbate it. Added to that is the fact that these special visas are often gamed by migrants who relocate almost immediately to Sydney and Melbourne - which is where a good 85% of them end up anyway.

    Instead of flooding South Australia with more migrants to force wages down why not consider decreasing costs for business by (oh, I don't know) cutting electricity prices? Abolishing payroll tax altogether? Nup, instead Steve Marshall is busy making business even more expensive here.

    His announcement today that power would go down as a consequence of building the NSW interconnector - so we can stabilise the grid after it was ruined by Jay Weatherill's disastrous renewables push - doesn't gel with the Liberal's own figures before the election that stated the entire $1.5 billion cost of the project would have be worn by consumers. Suddenly it's 'cost neutral' or better.

    Steve Marshall is full of it, I don't believe a word.
     
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  19. TMNT

    TMNT Well-Known Member

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  20. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I haven't bought anything in Playford for a couple of years now. Better options in better suburbs for not much more