SA Hype Davoren Park, Adelaide

OK, I get it, but I have a better proposition USA, I will be looking at least 15% returns pa and you will also achieve CG because there is low stock and it is not meeting demand. I will keep you posted we are working on deals at the moment.

MTR

 

Is Salisbury heights tagging along, or vise versa? (which has the higher median value?)

Exactly, A lot has been put on the fact of such a low price base for the Playford area translating to high yields, but i think there is a lot of potential for growth along the Main nth rd corridor from Playford to Parafield. The planned infrastructure/developments along this stretch are going to vastly improve the serviceability of these areas, Daveron park included! (just to stay on topic)

 

I would not like to be holding negative geared propertys purchased lately. If the unemployment rises, at least I'll know davoren park tenants will be always paying their rents on time. Bring on cashflow baby.

CPI Falls For First Time Since 2008

 

Correction : taxpayers will be paying the rents for them..as they currently do.

 

Yup, setup Centrepay and govt pays you directly

 

David what's the maximum 2 full time unemployed adults can rent? Would they be fit for say 350/week?

 

It's possible. I'd prefer to keep them under 275 though to prevent affordability issues down the line.

 

Just needed to know how much in increase is possible. Cheers

 

Adelaide is quite a compressed rental market compared to other states.

 

so...is anyone going to be buying in davoren park? I wrote a big-ass spiel on it in an earlier post.
It took considerable brain power to hype it ( its probably the most un-hypable place in australia, some would say the south pacific), and would like to see some results with people considering buying there.

 

Probably not

 

I'd prefer to do this, but its not as easy to come by information there as it is here.

 

What do the net yields look like (as opposed to gross)? I looked into Detroit when they went bust. The council rates were ridiculous!! Some houses wanted $10k+ per annum for a garbage truck to pick up the rubbish...

 

Detroit is not for foreign investors perhaps not even for US investors, though some have made a go of it and made it work an it is turning around.

Atlanta
Florida
Texas

and a couple of other markets I am keeping close to my chest at the moment. More than happy to share soon as I am currently working on deals and may benefit other investors

 

as mentioned will share more information shortly, may suit some investors on PC but its just a little early at the moment.

 

How do you factor in exchange risk with the AUD at a historical low? Are you hedging, or are just hoping to pull out of the market before a reversion to mean AUD/USD ratio?

 

I'd be curious to know about this, MTR.
Misse dmy golden opportunity for the US a number of years ago due to fear and a lower risk profile than the one I hold today.

 

Back on davoren and surrounds. So if labor wins and neg gearing is only allowed to new propertys.
My theory is that investors will target new homes to continue to use NG, which will be in direct competition with new home owners trying to get into the market, pushing low end propertys up.

See. Davoren park will boom. You read it here first.
Tomorrow the herald will claim it as their own.

 

I dont own or manage any properties in the Davo, but I hope you're right.

Although if ALP got in the country would be screwed so it might not matter.

 

Barny
It depends on what they are earning. To afford a property of $330/week, combined income should be around $1000 / week and that is not usually a centrelink payment.

However, it's not how much they can afford, it's how much the rental property is appraised at. We had an applicant recently for a $320 per week property. Their affordability was for a property that was $280 max. Application rejected. You can't reduce the prices of your rentals to accommodate the tenants when you can choose a tenant that can afford the rental.