Property in South Australia - First Investment

I’m looking at buying my first property with the goal of owning a few by the end of the year.
Looking to make use of the FHOG and First Home Builders Grant (save myself up to 30k), plan is to live in it for the minimum amount of time and then turn it into an investment property. Looking at suburbs such as Enfield, Kilburn, Woodville, Seaton Gilles Plains/Holden Hill
Thoughts? Although, the land itself in these areas isn’t great for the amount I’m looking to spend (350square metres). I’m seeking to spend 400k.

Once the first property has settled and been built I will look at suburbs such as Hallet Cove, Trott Park, Sheidow Park, Noarlunga, Para Hills and Adelaide Hills which have larger land compared to the above with the intent to potentially subdivide in the future - subject to Council approval. I would be looking at purchasing land above 550 square metres.

Alternatively, I could purchase a large block say 800-1000 square metres and develop 2-3 houses on it in areas such as Elizabeth, Gawler, Evanston Gardens, Salisbury, Reynella potentially Christies Beach and sell them at some sort of profit and continue developing or keep them as rentals.

I’m still very new to the whole investment property industry and trying to understand the market.

 

Woodville would be cool.

Can't quite put my finger on why Elizabeth isn't a good idea - perhaps someone else can comment. Employment is a problem that is all i know about that area.

When i bought my IP in adelaide i tried to be close to CBD with a good land component. I ignored the traditional expensive areas and looked for undervalued pockets. That might be trickier now with the market in an upswing. I ended up with an old house and good block.

 

Generally good idea but what I want to say is better do it hurry,the market is crazy now.

 

i haven't been to South Australia since 2012 , but from memory jobs was a problem in rural SA and smaller towns ( apart from near mining projects )

that MIGHT have changed but if your tenants are on govt. support you can't really charge much rent

however in 2012 those prices WERE attractive out there ( at first glance ) .. never got around to checking fees and charges etc. etc etc.
ALSO floods might be a problem i know it doesn't rain every year in outback QLD , but when it does you get wet knees in SA ( and western NSW )

 

I live in Adelaide and ive been actively searching with my son for his first home.

The market is very hot at the moment. We went to an open last week in Morphett Vale and there were more than 100 people present.. with around 20 offers made on the property.

We also went to display homes at Seaford and were told there is no land available in the south at the moment and we are too late for the home builder grant due to lead in times. The house and land packages they are advertising on realestate.com.au are already sold. They are using them as bait to get people to enquire and register for future land sales.

There are potentially blocks available from individuals who have subdivided.

I dont see any upside in Elizabeth or adjacent suburbs (others may disagree).

My pick would be an older house in a southern suburb where equity can be generated through renovation or subdivision.

 

I wouldn’t disregard the likes of kilburn. Rough around the edges... yes. But close to town, on the train line, good infrastructure etc. Shopping centre with the only Costco in SA. You might even get a 3 bedder on 700m2 for just shy of 500k. If you’re extra lucky it might even be in the urban renewal zone with potential to whack up 4-5 townhouses.

 

here’s a good example...
26 Hopetoun Avenue, Kilburn, SA 5084
https://www.realestate.com.au/sold/property-house-sa-kilburn-134933038

 

Very interesting. I made offers on several properties in Seaford during September and October but kept getting pipped and ended up buying in Happy Valley which has worked out well.

Do you expect strong demand to continue in this area?

 

Id also suggest talking to a mortgage broker upfront to discuss how you should structure your lending so you can buy more than one. Do this to start with so you know what your borrowing parameters are.

 

I'Ve been watching the southern market closely for a few years. Its really heating up.

I think the ability to withdraw super combined with home builder has had a huge impact. I also think SA hasnt been impacted too badly by covid and people are feeling optimistic about the economic outlook for the state.

Id estimate properties in Morphett Vale that would have sold for 260-270 6 months ago are going for $40k-50k more now and it doesnt look like slowing. People are sensing a boom and trying to get in.

A lot of the cheaper properties in MV ive been watching are being subdivided and the blocks selling for up to $180k. One we put an offer on sub $300k but didnt get currently has 4 townhouses being built on it.

 

Interesting views from you all! Appreciate the advice and will consider in my decision.

Not wrong with the fact that the market is heating up.

 

Seaford is hot. Was looking at a couple of properties last quarter, and they are now up at least 50 to 60k.

Moana (Seaford Beachside) is booming. One property is now worth 80k more than last year. As others have said, there is an extreme shortage of properties at the moment.

+1. You need to get into the market quick smart.

 

The sleeping giant has awoken, my thoughts are its going to be hot for awhile yet.Im trying to bring my 2 lot sub division forward,the land is like Gold in Christies Beach.

 

If i follow the data and I have been researching markets to find pockets with scope.of upswing, you can't go wrong with Tea Tree Gully council. The most benefited council with all the infrastructure and projects.

Cheers

 

Hi is that you Steve?

 

No.

 

A lot of the pricing in many of the Southern suburbs still seems like there will be more growth coming over the next couple of years. What I have noticed is the prices of trade work is a bit lower than Victoria making maintenance more affordable. Unemployment for SA as a whole was reported at 7.1% yesterday which is a bit of a jump however.

 

Happy Valley appears prime for a boom:



It's not as much as a factor in Adelaide since we don't have sprawling suburbia >50km out of the CBD. However, with working from home I think suburbs like Happy Valley will become much more attractive for families that are looking for relatively modern houses with a backyard for the kids to play. Most of the Marion council is slowly losing the austerity houses that are being demolished and subdivided into court yard homes.

500k no longer gets you much in the Marion council but if you head up the Expressway suddenly you have a nice home with land content. That's what I did 5 years ago. In hindsight if I knew that my household income was going to increase by 50k per year and interest rates were going to decrease I would've taken on more debt and lived in the inner South. However, those houses that used to be 500s are now in the 700s so people are going to look further afield into suburbs like Happy Valley, which are family friendly areas with decent schools (as opposed to further South in the beachside suburbs).

 

Thanks. When I was over there almost two years ago it was the first time in the city and I saw a lot to like about Adelaide in general and especially the southern suburbs. If local and state government can work more on employment and commerce then we should see good steady growth continuing I think.

 

Have personally purchased my first investment property in the Modbury Area a month ago. Seeing great growth in the area and has access to the O'bahn to get to the city easily.

The market has been super hot right now, property had 20+ groups come to inspect on the 2nd day of listing and was rented out within a few days.

I see growth in the southern areas in Morphett vale as well