Hi, I'd like to buy my 1st investment property in SA. My budget is $325k. I don't mind a bit of negative cashflow to make capital gain in 3-5 years timeframe. Should I buy a house or unit? Where should I buy? Realestate.com recommends the following suburbs (based on my budget): Salisbury Downs, Burton, Salisbury, Port Lincoln, Mount Gambier, Strathalbyn. Which ones should I pick and which ones which I stay away from? Thanks
Port Lincoln, Mount Gambier and Strathalbyn are all regional areas. Have you looked at a map of Adelaide to date?
I'll give my perspective as an Adelaide local. These are not guided by stats/numbers, just my own feelings. The regional areas may be great for lifestyle, but I don't see them providing much capital growth, unless you're beachfront, which would then be out of your budget. Reason being is all the ones I see moving to those areas are the ones priced out of Adelaide. If you're set on houses, it would be Salisbury area. It's a bit rough socioeconomically and the calibre of tenants are lower, but low 300s are very affordable even to low income earners and I would expect to see the median prices there reaching 500s by 2030. Units in Adelaide are still not very desirable for most people. 2-3 bedroom ones in nice inner city locations are already out of your price range for a start, but I also can't see it outperforming standalone houses in Salisbury.
Hiya Sorry, you're a year too late to a house buy in metro area with that budget. Is there anything you can do to increase it? Otherwise you can either consider the country towns you've already mentioned, or otherwise a unit in Adelaide.
Hello @D.T. I am in same boat budget 500k Is buying in suburbs like Reynella, Christie downs, Christie beach still offers any capital growth and rental yeilds? thank you
Not aware, Thanks for the pointer. One I was looking at ingle farm, Paralowie. Will the supply hamper growth?
Looks tough in these areas, I am confused to finale ingle farm or aberfoyle or Christie Downs in terms capital growth that can offer?
Christies Downs has a reputation for being bogan. Having visited that area, I can't say its not deserved. That said, it has a beach going for it. Aberfoyle Park is very scenic, nice streets, lots of families, good schools too. It has a lot of owner occupier appeal, and represents good value for those on tight budgets. Ingle farm is more multicultural. A bit rough around the edges, but it is near areas where prices are pushing 700-800+ (Walkley Heights, Oakden). Its by far the closest of the 3 to the city though, in terms of commuting times. I think all 3 will do fine, but my feeling is Ingle Farm is likely the strongest of the 3 in terms of future capital growth, mostly driven by proximity to the city.
Thank you. Most props going for auction, too old houses. Worth waiting for market to cool off as interest rate hikes around?
Thanks for that. I can increase it if I can get better options (return wise). With 500k, where should I buy?
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