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Hype Davoren Park, Adelaide

Discussion in 'Where to Buy' started by Barny, 26th Apr, 2016.

  1. Barny

    Barny Well-Known Member

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    In tradition of hyping areas which I have a vested interest in.

    Bought here as its cash flow positive.

    Development friendly council.

    It has some trees.

    It's a very community friendly hood, everyone tends to sit on couches and catch up with neighbours and friends.

    I heard people on the train talking about it. So word on the street is people from Sydney and Melbourne are moving across to start a better more affordable life.

    I think it's going to boom soon, so best get in while you can.
     
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  2. Gmikes

    Gmikes Member

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    I've been following this area too. Not too sure about CG potential, and it hasn't seemed to have moved in a while. If I do pull the trigger, it'll be purely for cash flow...
     
  3. Gmikes

    Gmikes Member

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    Barry, care to share what your numbers look like?

    I'm eyeing freestanding houses on decent blocks of land for c.$160k, returning $240/week
     
  4. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    You can get cashflow without having to buy in Davoren Park. It is the lowest of the low and generally to be avoided.
     
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  5. joel

    joel Well-Known Member

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    I hear that every new build in Davoren Park comes with free installation of ventilation apertures in your windows - its a Centrelink-led initiative.
     
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  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    4/136 The Parade Norwood, South Australia
    Loving the Adelaide hype
     
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  7. Barny

    Barny Well-Known Member

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    Purchased a 3 bed, 2 garage for 217k, rents at 270/week for last 3 years.
     
  8. Barny

    Barny Well-Known Member

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    My strategy changed over the years, this purchase was a need for more cashflow properties, and live off the rents as I replace my working wage and sell off high growth property earning low 1.5%

    I believe growth is in the far distance. Not sure when.

    Need a great manager to make sure the best possible tenants are selected.
     
  9. meme plecko

    meme plecko Well-Known Member

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    ok locals, please help me understand this property:

    Last sold 3 and a bit years ago for 140k, had a cosmetic reno and sold for less (135k) this time. On a big block (800sqm+) and asking rent 270/week. 10.4% yield!?!

    So, has somebody been murdered in this house or something? That's cheap even for DP and looking at the photos, no work needed really.

    Sold Price for 5 Worden Street Davoren Park SA 5113

    Sold Price for 5 Worden Street Davoren Park SA 5113

    5 Warden Street Davoren Park SA 5113 - House for Rent #418274410 - realestate.com.au
     
  10. JDP1

    JDP1 Well-Known Member

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    not sure if there is anything anyone can say that will do davoren park justice...:)
    its in a class of its own. It the chief of all struggle streets; makes Druitt and Co. look refined, classy, and full of double PH.D holders.
    Even the SBS crew of Struggle Street fears to run a show from there, and that says something:)
     
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  11. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Its not worth $270pw.. tiny house. And if they do get $270 will be for a desperate tenant who is accepted by a greedy landlord who will have a tribunal hearing and insurance claim within 2 months.

    As a tenant, $270pw will get you a new 3br 2 living in a bit better suburb.
     
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  12. TMNT

    TMNT Well-Known Member

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    I love your optimism my friend ;)
     
  13. Barny

    Barny Well-Known Member

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    The agent is probably dreaming at 270. Mines now 9 years at 270 and immaculate.
    I actually first signed up to her to lease mine, sat vacant for a month. Changed agency and rented in 3 days.
     
  14. meme plecko

    meme plecko Well-Known Member

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    Sure @DaveM, 270 is too high but it looks like it was rented for 250 last year. But 135k for 814sqm...
     
  15. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Last rental was $240pw looking at historical data. Its worth $225-240pw.

    Re returns, like anything its risk v returns. I own a bunch in nearby suburb, but won't buy in Davoren Park.
     
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  16. D.T.

    D.T. Adelaide Property Manager Business Member

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    Nearby suburbs offer more but for the same kinda price / returns, IMHO.
     
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  17. Barny

    Barny Well-Known Member

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    Are nearby suburbs really that much better?
    I see all near by suburbs as low socioeconomic.
     
  18. D.T.

    D.T. Adelaide Property Manager Business Member

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    Davoren Park is to Elizabeth as Elizabeth is to Adelaide.
     
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  19. Barny

    Barny Well-Known Member

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    Elizabeth is to Adelaide as Adelaide is to Australia?
     
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  20. D.T.

    D.T. Adelaide Property Manager Business Member

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    Hey :(