SA Will Adelaide perform from late 2015/2016..will it be a goer?

On the back of Steve's Brissie thread...I thought I would do a thread for Adelaide. I know there are ones for specific areas in Adelaide but one for the whole city would be good I would have thought.

Based on some local *****s on the ground (i..e DT) and others...this is what I am hearing:

1. Elizabeth/Playford area is showing promise
2. The Southern beaches like Christies Beach are starting to move...

The only concern I have is the impact of Holden...but that may have been factored in. And some are saying money is spent to negate this from the Federales.

Look forward to people's responses...

 

From speaking with agents there are pockets in SA that are moving right now.What I like about Adelaide is the low buy in, higher yield, and in my opinion an overall lower risk investment. From a state that some are skeptical of, there are still plenty of people making money.

 

True...as some of the suburbs are only 10 klms from the city and they sell for well under 300k. Split then and put 1 new house for 180k and you can sell them over 600k.

 

No one cares about Holden. There's like 500 people left there who are all going to get 6 figure redundancy packages, enabling them to pay off their homes and retire.

There's also 2500 people about to be employed by the $40Bil ship building contract the state has won.

Advantages as I see it are:
- Low cost of entry
- High returns
- Very easy to find opportunities make money via renovation / developing
- Commercial / Government spending occurring in key areas

 

where are they making money?
what are they buying? is this a buy and hold or are they developing?

 

All will work...just a matter of time...

You mentioned that you were not convinced about Brisbane...now there is hard evidence the market is moving rapidly. The people who got in last year or earlier this year will make a motsa....the buying part is a lot harder as multiple offers are being put in and agents are spoilt with cashed up Sydney buyers.

 

My immediate thoughts on the Holden closure was remembering back to the BHP plant closure in Newcastle and the benefit it gave that area in diversifying employee/industry spectrum over time.

It will impact short term no doubt but I believe longer term it will be a benefit to that particular area in Adelaide.

 

Well done with Brissy
Melb is also hot, middle ring East, my playing ground

...but SA, you won't convince me, back to my original question... What are the drivers? lower entry level is not enough, especially with current state of our economy

 

Maybe this will help......as posted by Coota9.........note QLD is now creating more jobs than VIC.

Any bets that SA as a smaller state will trump WA...in the jobs stakes as manufacturing/ship building industries ramp up again due to a much lower dollar?

 

Get on a flight...get there...do your own Due Diligence... Comapre other market.. And carry on!

 

Don't need to convince anyone, the intelligent people have already bought, and are still buying

 

Perth is certainly going through some pain at the moment, house prices falling

Holden closing = more job losses

 

@sash

Word from most Brisbane REAs are that interstate investors are driving the markert.

Interesting time ahead for brissy....lower entry price point certainly attracts investors ...for how long not sure??

 

MTR...this is what people also carried on about Geelong....in the end most of the jobs had already been lost. The total to go now at Ford is very small. The impact is negligible compared to new jobs at Epworth Hospital, TAC, Deakin Uni, and potentially the Workcover Authority if the nod to move down is approved.

 

In Logan absolutely....in other parts...believe it or not...it is first home buyers. Logan is the one to watch with caution ...but it is a big area...there are parts of it which are quite good and the prices are rising steadily. That is why doing recon on the ground is so important.

 

Difference is Melb/Victoria is not Adelaide/SA...Melb has many drivers not too mention Chinese /overseas investors

mtr

 

@sash

Few (top of head suburb)

Zilmere (Lmr sites)
Chermside
Rocklea
Caboolture(okay out of brissy)
Redbank plains/goodna
Holland park West (Lmr sites)
Greenslopes
Annerly
Moorooka

I have IPs in some....so love the drive... But time to exit around spring-summer


Take money off the table and invest elsewhere..

 

What if you could buy something for say $270k within 10 klms of the city. Build for say 340k...and sell for 770k plus....does that sound like a good deal???

 

Don't bother to take money out of Chermside, Annerley, Moorooka, Holland Park, and Greenslopes...these suburbs will continue to grow steadily.

Zillmere has too much unit/TH stock...Rocklea..well most of it went under....Caboolture...get in and out....same with Redbank.