SA Suburbs below $300k - Options?

Hi all.

I am relatively new in this game so any advice is more than welcome.

Looking to purchase in Adelaide. Strategy buy and hold. Filter used to shortlist were:

1. Median price < 300k (due to borrowing power )
2. CG (past 10 years avg) > 5%
3. Gross yd > 5.5%
4. Vacancy < 1.5%
5. Renter < 25%
6. Household income > $1,000
7. Median age < 35
8. Unemployment rate < State avg
9. Population growth > LGA (census 2006 and 2011)
10. Dwelling growth > LGA
11. Household income growth > LGA
12. Ancillary facilities/close to beach/ CBD/Activity centres.
13. House ( with future development potential )

Too many filters I know. At the end, three suburbs are in the mix ......Para Hills, Parafield Gardens and MV. Tracking the supply (listing) and demand (sales) of these suburbs for the past 3 months with days on market trend and an eye on the rental stock supply.

Have I missed anything or the filter is too demanding?

 

I like that you created a listing. Shows some thought and logic.
I'd remove/alter no. 2, 9,10 though.
I think you need to understand the reasons behind the growth. Building new housing because there's lots of available land? Not great. If the growth is due to people subdividing their own blocks of land causing higher density and more households, no problem (because it means this activity is profitable). And capital growth - that's more a state of the Adelaide market matter.

If it was me then i'd try to also try to buy as close to the city as I can afford with your criteria, as typically the people with the most money want to live closer to the city.
In addition, criteria no. 5 I'm not fussed on, no. 7 either.

"Tracking the supply (listing) and demand (sales) of these suburbs for the past 3 months with days on market trend and an eye on the rental stock supply."
This is extremely important. For capital growth, I'd want to buy in a location where supply will be tight and demand high in the future. There's a desirability factor. That way, if you must sell, you don't want your investment being one that takes months to sell. You want it to attract multiple offers in the first couple of weeks. Note there tends to be good areas of a suburb and not so good, so understand this.

Just a question. Once you know the suburbs you want to focus on, then how are you planning to select the actual property within the suburbs?

 

Sounds like analysis paralysis to me?

IMO my best picks under 300k are:
-north > ingle farm
- south > Morphett vale
- east > none
- west > old walk up units near beach

Really comes down to what you're actually trying to achieve.

 

Personally i prefer Morphett Vale. Was looking on the weekend and there were a few houses listed in the cheaper 250ish range that require a small tidy up. One of those would be my pick.

 

To many for my liking
1, 3, 4
And 12 near infrastructure and jobs
13 ties in to 1 3 4

 

Agree in full @bob shovel

 

If I was investing in Adelaide right now, I would be looking in Para Hills. For my strategy, I would buying a rentable house with future development potential.

 

Thanks @Perthguy.

Is the eastern side of Nelson road is more 'desirable' than the western side?

 

One of the locals like @D.T. or @Brady might be able to help you with that. I don't know Para Hills very well.

 

Hi @D.T. May be . A little homework doesn't hurt though. Thanks for your advice.

Is it possible to find something in Ingle Farm below 300k?

I am looking for a cash flow positive property (6% yd)with immediate value add potential (cosmetic reno) and also future value add potential (sub-division)

 

The part near Modbury Heights was recently renamed to Modbury Heights because of the Salisbury / Tea Tree Gully councils borders running through it. I'd still say the part closer to Modbury Heights is still slightly nicer.

 

As per above some of Para Hills was renamed > Modbury Heights, so it's no longer Para Hills.

Closer to Modbury nicer and Para Hills West would be the least desirable (closer to industrial)