SA Outer Southern Suburbs Adelaide Summary

Ok, nice to see its new. Could sometime be repealed sometime... and for food bowl, in Sydney that has gone further and further out... What was orchard country for fruit turned into freestanding housing. Which then 40-50 years later turned into a duplex style housing as everything became too expensive. But this is fairly well located middle ring Sydney i'm talking here.

 

Cash strapped Governments will always advocate for urban infill and density housing as it saves the heaps of $$$ on creating infrastructure. Local councils are usually happy to accommodate infill as it provides them more revenue via rates- recently the Prospect council was in the news as residents were complaining that Prospect was losing parts of its heritage (big blocks, leafy streets, character homes) as the council was approving 4 story developments in parts of Prospect.

From a non-Government viewpoint profit is one of the largest factors influencing the size of new land releases. Smaller blocks provide bigger profit margins, which also suit the Governments agenda as well as large property developers. Another thing to consider is that Adelaide's population is something like 1/4 of the size of Sydney's so if Adelaide just doubled in population land would be very scarce- Adelaide already has some of the smallest block sizes in the nation.

The real issue with Adelaide is the economy and attracting the population in the first place. Net interstate migration is always negative in Adelaide and Adelaide's migrant intake pales in comparison to the likes of Sydney and Melbourne. From a lifestyle perspective I actually prefer having less people, but strictly from an investor standpoint it's an ingredient that's currently missing for Adelaide to have a property boom. With the price of property in Sydney and to a lesser extent Melbourne I can see this trend changing though. People in their mid-early 30's with some career experience and family (especially if they are already from Adelaide) might realise what's the point paying $1.2 million for a house in Sydney and living the rat race when you can get the equivalent house in Adelaide for 400k? The challenge for Adelaide is creating these middle level jobs for professionals to come back to, and also for creating more professional entry level for graduates and Gen Y, which will help stem the 'brain drain' and net interstate migration loss.

Getting back on topic you can't go wrong buying a house in the Southern suburbs with 550sqm+ of land.

 

Ps. Guys, thanks. I knew my comment would not be popular. But thanks for taking a calm and measured approach in responding to my posts. I really like the area but if there's something to hold me back... I will just monitor it for now.
So far the gut instinct has served me well....

 

Can't move further and further out as we are bound by the Adelaide hills. The primary production zoning in onkaparinga is pretty well set in stone, even though there is an absolute glut of vines in the area

 

I've been buying heavily in south since last year. Using equity from Sydney and Brisbane. And if you asking me why not keep buying Brisbane, we had enough, diversification risk and too much competition for my liking already.

Since last year, all of our Christie's property cashflow positive. I can't get that from Brisbane now.

In terms of growth so far, Brisbane little bit up but not much in terms of percentage.

Future wise I personally think Brisbane for buy and hold but..
What I really like is dip into the market early and low ball like crazy.. (But damn, dont try that on Max de booze).

We pick up properties from Trudy, John Drabic, etc and arrange repair via our PM Judy. I haven't leverage DT but i will. Buy $200-230k, reno cosmetic around $10k. Rent $310-330/week
Currently similar house sold for $260-280k

For the same price in Sydney, I can get 4-5 or compare to Brissy 3-4 IPs in this area.

Will I recommend people to buy? Hell no, coz I'm not finish. That's why I thank Cliff not to elaborate MV in his Goodna treat.

Over and out

 

Thats ok Gockie, we all make mistakes / like to make up stuff now and then

 

Differing views... we can see things differently... would be boring if everybody always had the same opinion.

 

Look at all this unused land I spotted while on the ferry to manly. Therefore manly will never go up in value.

 

This. I have plenty of houses on my watchlist, but these are the ones that are still on the market after many months.

 

Same here Joel, if its more than 600sqm than different story

 

Fascinating insight, will keep you guys in mind if/when I decide to invest in Adelaide.

Generally speaking, what's a good owner-occupier:renter, or owner-occupier:investor ratio, and why? And is there's a way to look up the latter - the ABS stats only lists renter

 

The RP data free suburb profiles show some of the demographic make up of individual suburbs including the percentage of renters, houses paid off and those with mortgages etc

 

Investar is a pretty good source of information.

As to a good ratio... it's quite subjective. I'd say around 1 in 3 is a good start (so 33% in above graphs), but you need to know the full story. Eg is the number trending up or down? If it's trending up and it's also putting pressure on the vacancy number, then that spells to me that the horse has bolted. If it's trending down, but vacancy rate is still healthy (as Corey pointed out with the example of Christie Downs) then it's about to start going up.

 

Interesting map, but a little unbalanced. I think shifting some of that excess northern residential zoning south would only be fair! on a serious note though a smart piece of legislation.

 

Part three: Inner Western Suburbs Adelaide can be found here.

 

O'sullivan's beach. How would this compare to the suburbs listed?
A dingier Christie's beach? The old oil refinery I heard will be redeveloped into residential with parklands and a nice foreshore area.
Besides the extra supply of housing at the refinery site to the north, it would have to have some future upside positioned in between Christie's beach and the new area to the north?

 

Antos, I'd avoid it unless you want a very long term speculative play. Its mixed with industrial which makes it quite undesirable, has unattractive housing, has no beach despite the name. I think it'll be a long time before people want to live there by choice.

Meanwhile some of the surrounding suburbs are similarly priced and are safer options.

 

I believe Sully's will always lag behind the surrounding suburbs, 2 main things for me. There is no main roads that ppass through, you literally have to drive through an industrial estate. Secondly there are no local shops apart from a fish and chips/ deli etc you have to go to morphett vale or Christies beach. I supposed thirdly the only beach is the only full time off lead dog beach in adelaide, which is great if you like dogs.

In saying that it has done well over the last 10-15 years as it was very under valued but it has since caught up. A mate of mine snapped up a few 900+sqm properties just on 10 years ago for $150-180k and has been splitting them over the last couple years doing well for himself.

 

houses on nice size blocks of land under 250k all seem to under contract

 

Surprisingly Adelaide is going up