SA Prospect 1838 Churchill Rd

Hi, anyone had a look at the townhouse release at Prospect 1838 on Churchill Rd?
Close to city, new development, however many apartments being built along that section leading up and past Churchill rd.
Not sure if it's worth taking a punt in the first release for an IP or leave alone.

 

Hi Ralphman, that looks like a good development. I have an interest in that area, and the proximity to CBD tends to be the key for people who want to live or invest in the general area. From the perspective of someone who has an interest I hope that development does well.It seems to have an advantage over some of the others along the 'strip' of Churchill Road in that it appears a more integrated development.

So the question is are all those developments along Churchill Road doing well? What would be the alternatives to that development, and does it have enough difference to make it a good investment. I would hope that it would.

But I am keen also to hear different views on it.

 

I go past pretty regularly, it's a good spot close to the city.

Have seen a few of these marketed - be very cautious of rental estimates given. They all appear high to me. The road has been given high density so houses are being replaced with apartment buildings which contributes to the supply level rapidly

 

I hear it all over the radio a lot.. but no real comments beyond that as I dont like off the plan apartments on arterial roads

 

I find myself in agreement with David - it's a very busy main road, there's a helluva lot of supply coming on stream as Churchill Rd has been re-zoned and lots of new apartments along there - on the plus side it has its own railway station on the Gawler line. But think of this: for the same price as one of those townhouses you can get a house with some significant land around it in nearby Kilburn or Blair Athol - given that the capital growth in Adelaide seems to be restricted to houses with land then I'd suggest you'd be better off with something like that.

 

Thanks for your comments all. I've just finished looking at the development and the floor plans and came to the same conclusion:
1. a lot of apartment supply coming on along Churchill rd.
2. originally I though the vacant patch in release 1 was a reserve, its actually future apartments
3. there are 60 apartments in release 1, you will be a price taker if ever looking to sell, and also in competition with all others for rental levels
4. you are getting about 60 - 70m2 of land
5. prices are $485k to $565k

Last year I bought a 3 2 1 IP for $507k on 250m2 Plympton Park off a developer for my SMSF. Something similar is what I will look for again.
The plan was wait 2 - 3 years to build up a better deposit and buy, however if Labor get up next year they have said ban borrowing in SMSF so may have to bring forward the purchase. As SMSF I'm looking for a slight bias with yield over growth as like to hold and live off the income come retirement - not be asset rich income poor!

 

Interesting, thanks for letting us know - does sound expensive for what it is. There's proximity to a railway station and newly-developed shops that it has in its favour but that is rather pricey for a very small allotment... as we were discussing recently it's the value of the land in Adelaide, the dwelling itself will never experience capital gain. But the land the dwelling is on will... even with a focus on yield you need to think about that.