SA Hype Davoren Park, Adelaide

Good timing Mr Cashflow.

...and there's people with 30+ house which have a Elizabeth North in their portfolio that was purchased for $112k in 2005. So you mean they made $30K gain in 10 years..?

no wonder they're p-i-s-s-ed with low socio economic houses

 

Pretty much. I knew of someone who had 30 houses in Elizabeth then got divorced and still had 13 or so around when he died. He held them for like 15-20 years and always did IO loan. He sold a lot of them around 2008 as there was a mini boom. He sold a semi detach for 180k. Now you would only get 140-150k for the same thing.

So you can make money out of Elizabeth will just take along time. Occasionally a bargain pops up. But you have to know what you are looking at. A lot of interstate people don't

 

Article from Adelaide advertiser regarding recent growth in property market, Salisbury heights topping the list with 27% for past year.

No Cookies | The Advertiser

 

This is a davoren park thread..not a salisbury thread ...buts its ok as its entirely consistentwith PC threads diverting.

 

True but if Salisbury is moving..it does hold some promise for Playford as it will eventually flow through.

My feeling on Adelaide is it is very early in on the cycle. Like Tassie....the better areas have already moved 10-20% over the last 18 months. However, I can't see Adelaide taking off like Sydney and Melbourne. However a 20-30% gain between now and 2020 is not of the question.

People focus too much on making money now..vs what can be done over the longer term. Over time property will track inflation or better.

 

Still a good achievement. It's easy to say why didn't he just buy 8 houses in Prospect instead, but he probably wouldn't have had the income/serviceability to do it.

 

There's both the ability for the initial purchase and also the capacity to hold onto the negative cashflow as well.

Of course, if you're on a squillion dollars a year you could just buy places in every city and then parade around like you know what you're doing

 

And maybe a SINK

 

Yes...spot on the holding costs would not ley you get there..but you could have bought in areas like Chrsties Beach say in late 2000s and done ok.

Interesting comments David.

One of reasons why I tend to take @Xenia more seriously when I look at Adelaide posts. She is also more commercially savy and more positive.

As for squillion dollars...yes I am on a great wage...but that only happened in the last 5 years. before that I was on mid 100s till 2010. I was already at 12 places by then. Plenty of people who had 250k back then...and still did not get to that point..more about mindset and will than anything else.

So the 64k question is how is he still doing int if his rental income is more than 2.5 times income.....

No need to comment....we will have to respectfully agree to disagree.

 

This post just got to a new level. I thought it suppose to hype dev park

some people just needed their ego stroked.

 

Would just like to point out for those not familiar with Adelaide, Salisbury heights is a world apart from Salisbury itself, its more the older and beginning of Wynnvale/Greenwith, in fact I remember not too long ago the residents petitioning for a name change to the suburb, the fact it had Salisbury in it has held it back for awhile but with Wynn vale and Greenwith on the up it is tagging along.

 

I do agree you can have headaches with tenants in any area.

I guess its different strokes for different folks, if you are happy with $730 pa cash flow then that is fine.

For me it is way too lean to forgo potential growth. All to their own.

 

We hold the record in WA, actually Rockingham, WA, voted number 1 bogan area of Australia.
Come down some time

 

I need to come to you in a years time for Bogan subs in Perth. I want to beat Sea Change to it ..

I thought Medina/Leda + surrounding is bad.. I might pick up some recent H&L packages in Wellard for a discount.

 

Just got the contract, so now I can disclose. It's $298k. A little more than I wanted to pay (isn't that always the case?), but the current rent is $220 and $240 per week and I think there's a bit of room to move up on the $220.
The area also seems to be gentrifying a fair bit, the whole street used to be all semis and now there's only five left with lots of new buildings around. I don't want to talk it up too much though, there are still burnout marks on the street and one of the neighbours has a couch out on their lawn.

 

The interesting thing I've noted is that Davoren Park has consistently held similar to slightly higher rents in some cases compared to the Elizabeth's - making a marginally higher yield distortion. You're more likely to find sub 150k bargains there, but keep in mind a lot of the stock still remains in the 175-200k range (which you would be better of buying in the Elizabeth's for that price)

 

Sorry that was from me being in a hurry to get to an open, and the couch is a courtesy rest area for busy investors to relax

 

hehe, never give up..

Yes, your right Medina, Leda, Kwinana are very much on the nose, I would prefer Rockingham any day over these areas.

I buy in State housing areas and have had amazing growth, however the key was development potential, rezoning, when significant changes occur where investors can add value then you have a perfect storm, buy low, make quick CG when zoning is ratified, and when the herd get wind of it the growth has already occurred.

 

Hell no, I always want more cash flow and growth lol.
You don't risk 200+ k to only get 730 bucks cashflow.
But it was part of the transitioning move for my portfolio. For me it works as I needed it. Are there better areas for growth? Probably.
Do I believe long term growth will happen? hope so.
Right now I need cashflow to keep building my wealth. Buying and holding negative geared propertys these days is not my strategy, I'll leave that for people that think property will continue to grow as it did over the last 15 years.
Either develop and create money, or cashflow from day dot.

 

Hypothetically. If I bought one whole street of davoren park(every house), and placed 24/7 security monitoring the whole street, with boom gate accesses. For example, like neighbours. Do you think this would increase values?