SA Where to invest in greater adelaide region for <450k

Hi, I'm a new invester planning to buy my first IP in greater Adelaide region. My budget is 450k. I've done some research and found that the southern part is more gentrified. I would love to buy in Hallet Cove and nearby area, but it seems I've been priced out of that. I see some old properties in mophett vale, seaford rise etc in my budget. Are these good areas and is it worth buying an old property that needs renovation (in current market when material cost is sky rocketing)

I've also evaluated northern part- Salisbury, Elizabeth, Andrews Farm, Munno para, Evanston. I've heard Salisbury and Elizabeth, though in my range, have a really bad reputation and the probability of finding a good tenant who'll take good care of the property is far too less. Andrews farm, Evanston, Munno para i think are too far from the cbd.

Can locals or people who have bought there share their experiences?

Thanks

 

Have you looked at Christie's beach? I'm currently interested to buy there.

 

I second Christie’s beach as well as Seaford and maybe Ridghaven and Redwood Park if you look hard.

 

450k budget you are probably limited to hackham west, christies downs for ok condition. might get you into morphett vale with a good amount of work needed. assuming you want 3 bed and decent land.

older house small land or 2 bedder 450k will get you something nice maybe with change

seaford is ok but anything south or the river has a real traffic problem personally I would have a look at noarlunga downs over seaford for similiar money

 

Yeah, I've checked christies beach. Can't find anything in my budget though, seems like I've missed the boat

 

Buy both sides of a duplex in Elizabeth? 7% yield.
I've got 5 IPs with 6 tenancies there.

 

Hows your experience so far with tenants? I heard it has a very bad reputation, high crime rate n all. As a landlord should I be worried?

 

The Salisbury LGA is huge. Tennant quality will vary exponentially from North to Heights. For a balance of Tennant quality to median buy in, my recommendation is East which fits around your Sub 450.

 

I've got a fantastic PM down there. Sure there have been issues in the past and if I had a crap PM, they would have been a pain.
But I had one break in in six years across the properties and that was while a property was vacant and someone stole the copper piping. My PM just claimed it on insurance and that was the end of it. Only lost a few hundred dollars.

 

I would have thought you’d struggle to get 7% yield at the moment.

 

Do you think with current inflated price it's worth buying there?

 

Yeah, don't think 7% is possible atm

 

https://www.realestate.com.au/property-house-sa-elizabeth+north-139414067
This should rent for $620+, making it between 7.2% and 6.6%, based on the advertised price range.

 

Do people like to rent such property? Seems like the ceiling needs some repairs. I know rental vacancy rate is at its all time low but do you know what has been the vacancy rate in this area historically?

 

You won't be getting much in Salisbury for that price. Although it's a very large area that stretches from the sea to the hills. Down St Kilda way or Salisbury North you might be able to get something old and run down or maybe a unit somewhere. I definitely wouldn't look at Salisbury as one suburb you have the slums and then multi million dollar mansions with indoor swash courts and then houses on 10 acres. Salisbury is over 10 percent of Adelaide population wise.

 

How did you go with your search? Find anything? have just started looking in this area.

 

No, still looking. I'm really confused about where to buy. Some friends from Adelaide tell me that southern area (around morphett vale) is better for my budget. They say north side has low socio-economic demography and would likely remain that way. I had put some offers on properties in Largs North and Greenwith and they were all rejected. I've now up my budget to 550k. So again confused whether to invest in logan area (crestmead, edens landing) or SA.
What does your research tell you?
I

 

My budget is still $450k so I've been looking at older homes in Morphett Vale, Hackham and Noarlunga Downs. I've also heard that the north is low socioeconomic, although yields are high.
Have also been considering Leda in Perth which is the neighbouring area to Rockingham (which I've been priced out of now)

Interestingly I just tried to organise a virtual viewing of a property in Morphett Vale and was told no! Based on interest and availability, the agent wasn't willing to accommodate !

 

If it were I, and I was set on Adelaide for that price point I’d almost certainly go north east. Ingle farm and the surrounds.
I don’t own in the area, so no bias, just my opinion.

 

Can I ask why those areas?