SA Where to buy in Adelaide??

Hi,

I live in Adelaide and I love the place. I am looking to buy an IP in Adelaide for around 350-400k. Looking at a brand new IP with the excellent capital growth and nice depreciation.

Simply, I am looking for an IP that will be easy to rent out & enjoy above average capital growth over the next 5 years,

At this stage, Bowden, Hallett Cove and Hilton are the suburbs I am most interested in.

Can anyone who has investments in these areas please let me know what they return are or mention any other areas that offer great returns?

Thank you!

 

Adelaide prices might go up, but they might not too.

Personally I wouldn't be investing in Adelaide solely hoping for capital gains. I would look for something that will definitely make you money.

 

I'm not sure if that price budget will get you into those suburbs you mention. They are in different parts of the city, what makes you choose them?

Do you have any interest in renovating or subdividing? These ideas would help you get your preference for new IP in a different way.

Or if you want brand new, as per your post, you might want to look into house and land packages. Might be some in that price range in ingle farm for example.

 

I see people on this forum buy in Adelaide and have a plan to manufacture equity via renovation and than re-val or buy properties with high yields with future development potential..

 

I understand the logic of not investing in Adelaide searching for capital growth. But there must be some hidden gems that people have heard off.
Where would you invest instead?

 

The reasons I have selected the previously mentioned suburbs is that they have large potential for capital growth. Bowden and Hilton are the suburbs I am closely keeping an eye on as I expect them to increase in median.

I have no experience in subdivision or renovation as they take a long time requiring significant time and energy.

Do you think Ingle Farm can offer stable rental returns and good capital growth?

 

Can you really generate significant equity by renovation? Do tell me of how a new kitchen can significantly increase the price of a home.

 

1-1.5 years ago Ingle Farm had plenty under 300k. Now its only rear cutoffs and awkward blocks that cant be developed that go for that typically.

There are plenty of new builds for 350-400 in adelaide... however you are generally paying some elses profit margin to do so and will either forfeit yield for CG or vice versa.

 

I should have added some more detail to my answer.

Buy under market value,Reno and than pull out equity for future purchases,few guys here have done this in Adelaide market.

 

Yep has been done a fair bit by people I know down here. Forum member Corey Batt has a renovation for reval overview which is an interesting read for those starting out http://www.precisionfunding.com.au/11366/

 

how did you go with this one, @Marco_Polo ?

 

I personally like Adelaide but like the others mentioned don't expect a big capital growth. I want to look at some areas more in detail after the Financial Year.

 

I dont know about that. I own in eastern suburbs and have seen circa $80-100k value increase in a year.

 

Can I ask Dave what the entry price for those properties are? Are we talking 200 to 350k amount?

 

I wish. No for standalone houses on developable land. $400-550k buy in

 

The inner-middle ring north has taken off as well, particularly in a couple of suburbs (Kilburn & Blair Athol). Than again there are other suburbs in close vicinity (Clearview) that have stagnated, which keeps the median price flat. Markets within markets and all that...

 

My personal investing style is to target properties in areas where there are more owner occupiers than investment properties. Properties need to have an owner occupier appeal and be sought after by the richer demographic.

If the target market for selling the property later on is to another investor then you could be purchasing in suburbs that are poised to turn to ghettos during market cycle down turns while those closer to the city (North and South) and all of Eastern and Western Regions will always keep rising.

 

Especially in the inner ring - I'm finding some of the properties we're getting revalued over 12 months are up 15%+.

Adelaide has had it's prices temper somewhat in certain suburbs especially due to the complete relaxation of development rules, leading to the boom of the decade with subdivisions.

Whilst this has seen median prices appear flat, the price per sqm on dwellings has risen dramatically and this is where you see 'development blocks - ie anything which used to be a standard block with a 3x1x1 home on it' rising considerably. I'll take a punt to say that with these areas drying up in terms of supply of future subdivision sites, the demand equation will start weighing in heavier onto prices.

 

How's Athelstone area ?? Any potential there ?