SA Pooraka or Ingle Farm ?

Hi Guys

Im thinking about Pooraka and Ingle farm as an investment with a view to develop in the near future . Both suburbs you can get 700sqm for approx 330-350k.

Do you see growth in these areas ? noted it has been pretty slow recently . Or would a better option be investing in the south ie Christies Beach

P

 

Hi,

If your thinking of developing in the near future, don't factor in any growth. Run the numbers at current market values.
Look at your buying costs, dev costs vs the end values.... Will you be in profit after the development?

If you catch and growth, that's just icing on the cake.

I can't comment specifically as I haven't researched the area, but the goal of development is to turn a good profit relative to risk. Personally I aim for greater than a 25% margin, but others are happy with less.

Don't develop for the sake of developing as many seem to be doing these days.

 

I own in Pooraka, have for the last 7 years. Growth wise where we are has been pretty good in the last 2 years - Most places similar to ours are over the 400k mark. We own a 3/2/2 on 650sqm.

 

Ingle Farm probably the better bet IMO.

Pooraka has some nice sections (which in turn cost more) but also some industrial sections as well. Ingle Farm is predominantly 60s built 600sqm type properties.

As noted above, don't develop for the sake of developing. Get something thats easy to rent, attracts the right type of tenant and sit tight for a while as Adelaide is going up.