What is Really Happening Around The States??

I have asked you because you say, that the value of your property is around 680k. It would be correct ONLY after you sell it for that price, everything else is only a price prediction. I can say that my property is worth 500k, but when I start selling no one is willing to give me more than 350k for it.

 

Agree. For Adelaide I found that you either have to go for growth in blue ribbon/premium suburbs or go for yield. Otherwise you would be middle of nowhere, with money losses as well as not getting the CG required. Being zoned in and not far from Norwood Morialta also helped.

 

So why on earth are investors buying in Elizabeth, SA? I think its the largest thread on SS/PC.??

 

But to be quite frank.. if we are talking growth in Australia for the last 3 years, clearly investors should have been targeting Melb and Syd, that is where the money is/was.

 

Elizabeth is the high yield capital of Adelaide ...... It is like Logan in Brisbane ......

I have friend who had an IP at Adelaide for 7 years. No growth on the property and negative gearing/cash flow means at the end they have to sell it (along with their Gold Coast IP) to try to buy a house at Sydney (right now!!!!).

 

Actually last 3 years, certain part of Adelaide jumped, especially the blue ribbon suburbs (inner eastern, inner south eastern and inner south suburbs all jumped). That is because they have some of the best public schools, excellent demographics and they are the suburbs that people actually want to upgrade to. With interest rate dropped Adelaideans try to upgrade to there.

Now the rate of increase is not like Sydney which has gone ballistic but it is still a decent gain. But you won't hear much from here because to invest you need to be on negative cash flow and not many people here do this.

 

Just to show how much Sydney is still booming, and with strong demand, have a look at these articles:

Very expensive apartments, but the demand for St Leonards is huge:
Apartments at St Leonards Embassy Tower snapped up

First home buyer forking out $1.7 million for a 2 bedder terrace ......
First homebuyer in his 20s nabs Paddington terrace for $1.7 million

 

There is a difference between finger in the air guesstimates by an owner, and an appraisal by a licensed real estate agent or a value by a qualified valuer. You were arguing that there is no prospects for buy and hold, then when shown an example now argue there has been value gain in Adelaide but its not worth anything until sold as that is the only time it is really worth anything?

It is a good example too.. poorly bought properties happen Australia wide.. whether its buying in the wrong location, wrong market cycle, or the wrong type of property for the area. Informed investments are generally the best ones.

There was no secret to making money in the 2013-2015 Sydney boom, anybody could have just pointed at any house in sydney, bought it, and made money along with everyone else in sydney who owned property. Other markets are not as simple, but there is always money to be made.

 

If @DaveM is worth his salt as a BA, then fair to say his market valuation would be fairly accurate.

 

Us land agents aren't allowed to use the word valuation unless we are also valuers... we have to use euphimisms like "market appraisal"

 

Or acronyms like WFG which often resembles the advice.

 

Yes, I'm also a LREA. You can value your own properties and appraise others.

 

We won't hold that against you

 

Bahaha I don't practise in mum and dad real estate. Weekends blahhh. Got it when I was doing vacant land sales. Prefer development but it's good to get qualifications when you can.

 

The return on Tranmere is pretty ordinary....stamps and registration in SA are atrocicous....the cost to get in would have been 30k (stamps, registration, legals).

So the profit is about 110k gain...which represents 20% gain....the real issue is the 3.62% return which will not cover the holding costs. Assuming a 500k mortgage...you are dipping into your pocket. I feel some of the middle areas offer much better bang for buck. Personally...you could have made 110k in Melbourne a lot quicker with less risk....

I also feel that places like Elizabeth...offer no potential period....my personal opinion...

 

right so they prefer to make $2000 pa cashflow than perhaps making $100,000+ pa in CG...?
I guess they don't realise you need capital first to grow a property portfolio

 

... and that is the point Dave why invest in Adelaide in 2013 when a buyer could have purchased in Syd as per your example and made money sitting on their hands.

BTW, I have nothing against Adelaide, but I do want to make money

 

That might be why.
Continually talked up.
The people who bought early might have a vested interest perhaps?

 

Some people may not have had the foresight or confidence or cash to do so,.. or they preferred to invest locally, who knows. What many on PC forget is that not everyone is as financially educated as people here, and they buy what is safe. Some people also just make the wrong call and buy the wrong thing at the wrong time.

 

Still, its doing better than your $0 increase after 8 years Elizabeth semi?

Not claiming its the pinnacle of CG in the region, there have been some stellar inner ring growth numbers this year.

I agree for the most part, I havent bought anything in Elizabeth myself or for clients