SA Outer Southern Suburbs Adelaide Summary

We bought a house in Morphett Vale (about..7 years ago) - it's been rented as 2 x 2 brm dwellings so returns have been good (paid $296k and currently getting $510pw) I know I can officially subdivide the two sides but given I'm planning on keeping it long term I figure there's no need. I'm already paying 2 lots of council and water rates.

The address is 1a/1b Stanley St (Randell Rd) Morphett Vale.

Given its a corner block, do you guys see any further potential for this site ie units etc down the track? @D.T. do you think $255pw is decent rental for each side?

 

Hiya
Quite familiar with that pocket, have a few properties we manage around there. There's a variance on rents there - can be 250 to 280 depending on what they're actually like inside (they look kinda old from the outside). Given your setup would have backyards, I think they'd rent well as well compared to 2br units in the area that usually wouldn't. Obviously as they get older they'll get harder to rent, and wear and tear brings them down slowly over the course of a decade.

If you're getting that sort of yield I'd probably keep those properties like they are for now. It's likely you'll be able to demolish and build 3 there in the future. What do you think will be your timeframe on this?

 

Woodcroft has had some decent growth this year +7% YOY

 

Hiya
They are pretty basic and at least 15yrs old from memory. Its been very much a set and forget IP. My thinking is to leave them as they are for the medium/long term, but this thread got me curious about what potential the site had, and whether my PM was doing a good job!

 

I think you need to think about your development timeframe. They might be cruising along now. If the timeframe is 'soon' then perhaps let the cash roll in for a bit and set / forget til you're ready. If its longer term, I think its worth updating them inside to increase the rent and / or keep them ticking over (they get harder to rent as mentioned earlier).

Investment focused PMs can help you put a plan into place. Even if it means doing just one prioritised thing per vacancy if the budget is low.

 

Doing some preliminary research on the area and for my budget, I'm leaning towards Morphett Vale / Reynella / O'Sullivan Beach. I see a huge variation in prices between seemingly similar properties:
https://www.realestate.com.au/sold/property-house-sa-morphett+vale-134888622
https://www.realestate.com.au/sold/property-house-sa-morphett+vale-135004530
The former is a lot cheaper and much larger (regular block shape), and the latter is on a main road. That's 'only' a 60k difference, I've seen 100K as well.
EDIT: I see in the Salisbury summary the internal size has a lot to do with value. Does this apply to the south?

- Would a value add strategy work? ie Increase selling price (I've seen some nice looking properties go for cheap, while seemingly similar ones sell for a lot more). Does it increase rent
- Any difficulty finding (quality) tenants in those areas
- Probably looking at medium density areas but I don't see a reason to choose one part of a suburb over another (apart from avoiding the housos)

This seems like deal of the century? In Medium density, not Houso from what I've gathered. ~330k purchase with 390 4BR medium rent??
https://www.realestate.com.au/property-house-sa-morphett+vale-134967638