1st timer looking to invest in Adelaide, any advice?

[Brettryder]

Hi All
I have used the search function but looking for a bit more info.

Am about to purchase my 1st investment property, (my 1st property actaully).
I live in Perth so cant really afford anything here.
Looking at north suburbs of Adelaide, thinking a 3 by 1 and spending around 180k to 230k. Looking at areas of Andrews farm, Elizabeth, Salsbury and surrounding suburbs.

Do you think this is a good idea or should I be looking for something closer the the city and spending more?
And do you think I could get a good rental return on this?

This is all new to me so any advice would be much appreciated

Thanks in advance

Brett

 

[hobo-jo]

http://www.somersoft.com/forums/showthread.php?t=32190

There is some good info there. Seems that the north is going fairly gangbusters at the moment with everyone wanting a slice.

I bought my PPOR (first property) last year in St Marys and looking to buy my first investment property in the next month or two if something comes up. I will be looking at Christies Beach @ around the 200k mark for a small house or a unit. Personally I feel that the south has more to offer in terms of entertainment, shopping, attractions (ie the beach), etc.

Goodluck

p.s. What is it you are referring to by saying '3 by 1'?

 

[LynnH]

hobo-jo

3 bedroom, 1 bathroom

Cheers
LynnH

 

[Xenia]

Have a look at some information on our website:

http://www.creativerealestatesolutions.com.au/cgi-bin/page.cgi?id=112

We also have a newsletter with the top 10 suburbs of Adelaide available through www.adprop.com.au or email me [email protected] if you can't find it. (Email please no private messages on this forum, I can't flag them for response or attach documents to them, they may never get answered, emails will!).

 

[Jase H]

Looking at north suburbs of Adelaide, thinking a 3 by 1 and spending around 180k to 230k. Looking at areas of Andrews farm, Elizabeth, Salsbury and surrounding suburbs.

We purchased a near new (18 months old) 3 by 1 in Smithfield on 392m2, Aug 06 for $185k with tennant in place at $200/week (5.6% yield and heaps of depreciation). Rent has just increased to $210 or 5.9% yield. Tennant and PM has been gold thus far. I suspect that property is now valued b/t $210-$220k now so short term CG has been good, but i suspect more to come due to demand and lack of supply of new housing in area.

We have also nearly completed building a 3 by 2 in Smithfield Plains on 375m2which has will have total build cost of about 190k (ie inc land, house and finnishing) and should reval for $225k and rent for $220-$230/week or 6% to 6.3% yield.

Also Steveadl has IPs in Smithfield Plains and Davoren Park which he has been happy with.

So to sum up Northern Suburbs acheiving solid rental yields on new and near new homes due to good demand for new homes to rent vs lack of supply of new homes for rent. Solid depreciation benefits due to newness of properties (9making holding costs even lower), and solid CG being achieved and likely to continue to be achieved in my opinion.

We are very happy that we invested in the area, and with gross rents covering our 80% IO loans holding costs are very low for a capital city.


Cheers

Jase

 

[Brettryder]

Thanks for the replys, im also thinking I might get a block in north salisbury and build a small basic house to rent out. Either way I think I should do ok.

 

[HockingWA]

G'day mate,

Yeah either way long term wise you cant go wrong.


Cheers

HockingWA

 

[Ahmad Azimi]

We were selling house & land packages in andrews farm afew months ago. 3 and 4 bedrooms in the low 200ks. I think they are all sold out now but I've got the project folder with me. I'll give you some info about the area from this.

Andrew Farm is 35mins from Adelaide CBD by fast road or train. It recorded a 9% rise in property values for the year to June 2005. REISA said vacancy rates for rental properties moved to below 2% for the fourth time in a year in July 2005. Renters paid $175 a week for 2bed, $185 for 3bed and $240 for 4bed houses. This provided investors with a gross retun of between 4.5% and 6%.

The profile produced by Hudson Howells said capital growth in Andrews Farm over the past 10 years outperformed the City of Playford as a whole.

Planned investment projects already undertaken are the $142 million Elizebeth Regional Centre development, the $90 million Innovation Network project, the $40 million BAE Systems (defence) program and the Bolvar pipeline expansion valued at $50 million.

There is heaps more but I'm too tired to type it all.

Andrws Farm could be another Kellyville (Sydney) but then again it's my personal opinion so don't take my word for it.

Overall I would recommend that area accroding to the stats and info.