SA Elizabeth SA Mega-thread continued..

Discussion in 'Where to Buy' started by Corey Batt, 18th Jun, 2015.

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  1. BingoMaster

    BingoMaster Well-Known Member

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    *tumbleweed blowing*
     
  2. hotmail

    hotmail Well-Known Member

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    What do you guys think about paying 205-210k for subdividable properties in Elizabeth Park? Just talked to an agent today who said that any offers below 200k would be "insulting"? Has the world gone crazy
     
  3. D.T.

    D.T. Specialist Property Manager Business Member

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    What sorta condition? A free standing established house would rent anywhere from 230-285 depending on condition. What does that do to your investment assessment?
     
  4. hotmail

    hotmail Well-Known Member

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    They are quite small houses internally and rent for about 240-250 which is a pretty bad yield right? Do you think it would make a difference if they rented for 260-280? I'm just a bit shaken because the agent just tore me a new one for even attempting to put those numbers on paper...

     
  5. D.T.

    D.T. Specialist Property Manager Business Member

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    $5 says it was ray white ?
     
  6. Corey Batt

    Corey Batt Well-Known Member

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    Not worth it - it may be a PPOR grade property, not investor spec. A lot of properties will indeed sell for over 200k in Elizabeth Park but this is catering to owner occupiers.
     
  7. hotmail

    hotmail Well-Known Member

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    That's reassuring to hear guys. I'm just a bit worried that there is literally nothing available and prices seem to be going up quite quickly which is making agents become dismissive of anything that's not in their listed price range. Seems that the stuff available at this moment is all overpriced.

    @D.T. It was Harcourts sergeant. Are Ray White bad too?
     
  8. D.T.

    D.T. Specialist Property Manager Business Member

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    I just did a search for houses under 200k with 3+ bedrooms with 600+ land. There are 71 matches.
     
  9. Kael

    Kael Well-Known Member

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    If you believe it is worth less then $200k, just say to them "Sorry, don't want you to feel insulted but this is my offer" ;) haha.

    Or you could just walk and if he/she seriously wanted to sell it, they'd come back to you.
     
  10. Kael

    Kael Well-Known Member

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    From what I've heard, agents are pretty incompetent down there though...? What if the agent just hasn't put the land in the ad yet or has decided against doing it?
     
  11. D.T.

    D.T. Specialist Property Manager Business Member

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    the selling agents in the area all come across as pretty demotivated. Its likely some skipped that like you said. That only proves my point further though that there's plenty out there for people like @hotmail who think its all gone
     
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  12. Kael

    Kael Well-Known Member

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    Agree with you 100% on that. Plenty of opportunities, just need to go out and find them.
     
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  13. mini2

    mini2 Well-Known Member

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    How accurate or optimistic is Pricefinder when it comes to 5112/3/4?

    It seems to fluctuate a fair bit..
     
  14. BingoMaster

    BingoMaster Well-Known Member

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    I'm gradually putting my thoughts together for a possible upcoming investment in Elizabeth. I am a first time investor, so I am mostly putting everything I've researched down on paper for my own benefit. But I would appreciate any people here to critique them, to just check I'm on the right basic path.

    - Back ground. My primary goals are for cashflow at this point. Of course I want the investment to grow, but since I am a beginner I believe my abilities to pick the next booming suburb will be limited. As long as the yield is decent, with a good chance of average growth for the very long term, I feel comfortable. This is what has brought me to Adelaide, as it seems to grow slightly every year with decent yields.

    - I want to get something which yields over 7%. Hopefully over 8%, if I can find it. Sound do able?

    - I will be a first time investor and from interstate, so not looking to develop or renovate. However, from what I've read, sub dividable land is more valuable in this area. What would the minimum size block be to fit into this category? 600sqm+?

    - Go for a free standing home. I've heard semi detached / duplexes can be riskier. Not exactly sure why this is, but I've read it a few times now.

    - My price range is the 160-230k range. From what I've seen, the median price range in that area is around 190k, so I wouldn't want to go much over that. I've heard it's a good idea to buy around the median or just under, when attempting to capture the general growth of an area
     
  15. D.T.

    D.T. Specialist Property Manager Business Member

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    Bingo-

    - Elizabeth with primary goal of cashflow. Tick.

    - Yield over 7. Tick. Over 8 requires some investment in time/skill.

    - Sub-dividable over 600sqm, tick. I wouldn't weigh this too heavily in your investment decisions though, let the property stand up under its own merits.

    - Free standing, tick. Reason is because things can happen to the other half (bad tenant, or fire/flood, etc) and that brings down the value of your one for no fault of your own. Exception to this is if you can own both sides.

    - Price range 160-230k. Tick. The lower you go the more renovating you might have to do. The higher you go the more likely you are to cater to the owner occupier market.

    Sounds like your research has been fairly sound. Get hunting.
     
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  16. Waldo

    Waldo Well-Known Member

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    Just to add to this, your quality of tenant is also likely to be lower in semi's than a stand alone house.
     
  17. spludgey

    spludgey Well-Known Member

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    I'm in the process of buying this.
     
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  18. D.T.

    D.T. Specialist Property Manager Business Member

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    How'd ya other offers go? (Privately if you prefer?)
     
  19. Corey Batt

    Corey Batt Well-Known Member

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    I don't find it reliable enough to use personally. In the office we generally use Residex as it has a good success rate + a good supplementary dataset. RP Data is decent, however the reports provided by them are subpar and really catering to the owner occupier market who aren't crunching too many numbers IMHO.
     
  20. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    What do you see in this one?

    Doesn't need much work?

    Block isn't anything big...
     
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