SA Elizabeth Property 2020

{Note from mods - this thread continues from here: Elizabeth Property 2019 [SA]}



Only in Elizabeth!
Alleged pizza thief arrested by 'supremely confident' police in Adelaide backyard

 

"Police patrols were called to the property shortly afterwards and allegedly found the stolen items inside the unit and the suspect hiding in bushes in the backyard.

"As you can guess, Ali, police were supremely confident of an arrest," Senior Constable Brown told host Ali Clarke."
---------
A play on words??? Supreme!

So they found the pizza uneaten?

 

The hood don't change. Another arson today.
Suspicious house fire at Elizabeth Park

 

34 Mavros Road, Elizabeth Downs, SA 5113

For those looking in the area

Land value plus a free house (almost)

House doesnt look too bad for rent for a few years

Im guessing termites might be a factor

 

Looks like a very good deal, but ads can be deceiving.
Is it me, or does it look like freshly sanded floorboards?

I thought I did well with similar house for $145k.

 

Maybe the previous tenant sanded it and snorted the white dust


Ps you bought or sold for 145k?

 

2014/2015 Q3 values



2018/2019 Q3 values

 

Why is it a good deal? Because its cheap?

It an awkward shaped block, made from fibro which is atypical for the area which will peg it down val wise, opposite a park with all the antisocial elements that come from that after dark and all the parking / noise issues during the day, and a small awkward floorplan that will make it not particularly desirable to tenants.

Floorboards are raw, carpets would have been removed for sale due to how feral they would have been.

 

Some people go for the yield play,
Plus if you are looking at developing, its a big block size, so the house will be torn down, so a crappy floor plan wont really matter

As for undesirable park, the whole suburb's undesirable!
I used to own on that street

 

If you were to put $10k into it, you might well get $250/week in rent.
That's a yield of 9.3%.

At 80% LVR that's a pretty decent cash on cash return!

I've got 5 (6 if you count both halves of my duplex) in the area. Are they the best Investments? No, but they're still quite decent from a cash flow perspective, allowing me to offset some of my cashflow negative properties. So all in all, I'm not complaining.

 

4 & 6 Knighton Road, Elizabeth North SA 5113 | Domain

Last sold for 320k in 2016. 2x4 bedroom duplex's could get up to $500 a week return. Extremely long term development potential

 

Rental of $540? Clearly I'm doing something wrong with mine!

On a more serious note though, I'm quite happy with how my 6 Elizabeth properties have been performing in this climate. Even got new tenants into one of them without a problem, three weeks ago.

 

Looking at current Elizabeth North duplexes for rent they range from $240-$260 a week but they are only 3 bedrooms. These are both 4 bedrooms so it's quite reasonable that you could get at least $250 a week for each property. That would be $500 a week. Not sure where you got the $540 from?

Congrats on having 6 properties in Elizabeth. With current rates they would literally be paying P+I for themselves.

 

Don't I look silly now! Didn't realise they were 4 bedders.



Unfortunately I fixed just before covid hit. Seemed like a very good rate at the time, does not now! Still 3.09% isn't terrible.

 

Have bought 3 duplexes in Elizabeth and surrounds and would never do so again. More problems than a New York Nurse at the moment

 

Did you buy both sides of the duplex or individual duplexes?

I was strongly considering purchasing a couple of Elizabeth duplexes about 5 years ago. However, reading posts from Somersoft like David Traegar put me off that option. Yield wise I believe I would've been fine but capital growth wise I definitely haven't missed anything.

What are the problems that you've encountered?

 

Bought both sides each time:
-Constant tenant vacancy
-Constant Repairs
-Police matters
-PM issues
-Capital Growth @standstill

 

Sorry to hear that.

I can relate with the police matters. One of my tenants was arrested just this week (northern Adelaide) on drug trafficking charges. Hopefully the tenant elects to give up tenancy of his property willingly depending on whether he is granted bail or not. This would then remove the need for SACAT action. It's a pity because he always kept the place neat and tidy and always paid his rent in advance.

 

Did you buy them close together? or were the issues not that apparent early on and you kept buying?

I have always been skeptical of duplexes and 1.bed apartments in low socio areas. They are always in average areas, attract drongo temants and are the last to be rented and first to.be vacated

I think you can buy well in crappy areas if you put yourself in the tenants shoes
things that you might not value - such as a big shed/ garage can be worth more to a tenant than a fancy kitchen and bathroom

personally i would rather buy cheap housing with high yield in country towns than outskirts of the city
reason is that for the same price you can buy a house in a desirable area as opposed to somewhere people live because theyy cant afford to live anywhere else

 

Some of those issues could very well be Tenant selection, which is on the PM. It's important to have a good PM.