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Sydney property buyers turn to Adelaide as they sacrifice capital growth Read more: http://www.afr.

Discussion in 'Where to Buy' started by ATANG, 17th Nov, 2015.

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  1. ATANG

    ATANG Well-Known Member

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  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Finding this as well - about 30% of my recent clients have been Sydney based.

    Most seem to be targeting either high yield suburbs or development prospects, at various places throughout the metro.
     
  3. ATANG

    ATANG Well-Known Member

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    Hope ADL picks up the growth soon... it's too slow for the past 5, 6 years... barely matching inflation levels.
     
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  4. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    We've seen a continually growing high demand in interstate investors buying Adelaide property. There has been two consistent types -

    • Borrowing capacity limited investors buying in the outer suburbs where their capacity will still be sufficient to grow.
    • Inner/middle ring investors actively targeting blue chip areas at the expense of extremely low relative yields (sub 4%).
    Both types are doing well, with the inner ring booming, and outer areas showing strong continued rental demand + trending up of prices.

    I'm interested to see what will happen to outer ring properties as inner area values plateau, the price differential ratio for inner vs outer has remained constant for quite a long time, so whether this will result in a feeding of an outer boom is a possibility (much the same as the previous boom).
     
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  5. Bullion Baron

    Bullion Baron Well-Known Member

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    I expect a lot of the interstaters buying Adelaide property circa $800k will end up burnt. Twice the median, it's like playing with $2m property in Sydney, except Adelaide has a much smaller pool of buyers who can afford that range, so lower liquidity.
    I would be surprised if that is not a direct result of your marketing here, rather than a ratio that reflects the current pool of investors who are buying in Adelaide.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    Are you suggesting I can single handedly affect a capital city market? :p

    Lots of home opens I go to, agents comment on volume of Sydney (as opposed to "interstate") inquiries. Stealing a glance at their call sheet confirms this.

    Did you end up finding a place?
     
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  7. Bullion Baron

    Bullion Baron Well-Known Member

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    Nope, but not in any hurry, I will wait for the vendors to come to one of my offers before I meet their asking price :p
     
  8. barnes

    barnes Well-Known Member

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    Interesting. Maybe it'll help to sell my last IP faster. :)
     
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  9. Elives

    Elives Well-Known Member

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    what do you mean by this? your saying it will have no effect on your borrowing capacity?
     
    Last edited by a moderator: 20th Nov, 2015
  10. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    No, investors who had their servicing axed by the APRA driven lending policy changes will be seeking out positive cashflow properties in the outer ring to increase income and servicing, or buy something they can still service for
     
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  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    Either what DaveM said, or the fact that some Sydney people can't service say 650k for a local property so they look interstate for a 250k one that they can.
     
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  12. DanW

    DanW Well-Known Member

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    Curious why you are selling in Adelaide right now?
     
  13. MTR

    MTR Well-Known Member Premium Member

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    .. its neither logical or makes much sense for investors to buy in Syd or Adelaide at these price points, I am sure mortgage brokers would confirm...?servicing and yields would not stack up
     
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  14. sash

    sash Well-Known Member

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    Watcha saying...MTR are saying a return of $570pw on a 800k house is puss poor! :p:D

    The great unwashed will lynch you...!

    Very shortly APRA will be be gone with one Abda Cadabra.....the clowns at APRA will go back to being academics again....;)
     
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  15. D.T.

    D.T. Adelaide Property Manager Business Member

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    Completely correct - don't know anyone looking at that price bracket for IPs (PPOR maybe).

    APRA issue is overblown, IMHO
     
  16. sash

    sash Well-Known Member

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    Plenty mugs out there...just got off a call earlier with the broker who was telling me about clients who bought in Ryde for 800k..trouble financing...and rent only 560pw...go figure.:rolleyes:
     
    Last edited: 20th Nov, 2015
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  17. MTR

    MTR Well-Known Member Premium Member

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    Is Ryde one of those bullet proof areas that Euro mentioned....;)
     
  18. sash

    sash Well-Known Member

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    Don't know what Euro said.......but as bullet proof as American marines in the middle of Mosul...:p

    Over 5000 units in the vicinity....
     
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  19. larrylarry

    larrylarry Well-Known Member

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    5000 units in Ryde or Top Ryde? There's no end to projects (units) in Macquarie Park.
     
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  20. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    At least its not dominated by massive highrise developments (at least to this date anyway)....and generally speaking if you are near transport its not too bad! Though Rhodes just on the other side of the river has heaps of not too dissimilar units.