Adelaide apartments

[Apollo]

I am looking to purchase my first residential IP soon, preferably something with reliable cashflow. CG would be nice but not relying on it. Budget up to $350k.

I have been looking at 2 bedroom units <10kms from CBD. I note that there does not appear to be a significant price difference between new apartments in the CBD and those in the inner suburbs, though city apartments generally do not include parking.

I have only just starting looking but there appears to be plenty of CBD apartments available and I wonder if this means there is a glut that keeps prices down, especially in the student accommodation market.

I am interested in Adelaide investors thoughts on CBD units vs inner city units vs a traditional 3 bedroom home in reasonable suburb such as Marion. I am not interested in the outer suburbs that could attract tenants with problems.

 

[Brady]

I am looking to purchase my first residential IP soon, preferably something with reliable cashflow. CG would be nice but not relying on it. Budget up to $350k.

I have been looking at 2 bedroom units <10kms from CBD. I note that there does not appear to be a significant price difference between new apartments in the CBD and those in the inner suburbs, though city apartments generally do not include parking.

I have only just starting looking but there appears to be plenty of CBD apartments available and I wonder if this means there is a glut that keeps prices down, especially in the student accommodation market.

I am interested in Adelaide investors thoughts on CBD units vs inner city units vs a traditional 3 bedroom home in reasonable suburb such as Marion. I am not interested in the outer suburbs that could attract tenants with problems.

Have a client who just purchased a 2 Bedroom in the CBD no carpark, he told me the address so I could look at it on re.com took me a while to find it, there was about 10 others in the same building for sale...

Don't know how you get demand when you have 10 of the same product for sale at the same time when there is many more available.

Not a big fan of no car parking but in that price range close to town something like this would be nice, something with some character that is different all the units in the same complex. No statra also.

http://www.realestate.com.au/property-house-sa-ovingham-114432239

 

[Apollo]

The link does not work but I think you mean the one going to auction by Toop and Toop. I agree it looks nice but there is no way that will sell for only $310K.

 

[alex9050]

What are your numbers going to be with a 310k purchase price? What will it rent for?

If you're not focusing on capital growth the amount that this property will return is incredibly important to you. What I've seen happen is when there is an influx of apartments in the CBD (Talking melbourne here) they have to offer extreme discounts to have them tenanted in a timely fashion... with some vacancies going as high as 10%!


Food for thought.

 

[Brady]

The link does not work but I think you mean the one going to auction by Toop and Toop. I agree it looks nice but there is no way that will sell for only $310K.

Link works for me

But agree $310k low ball...

Went to auction on the weekend, reserve was in the vacinity of $380k sold for $521k (my max was $453k )

 

[Apollo]

I am not surprised that it went way over the advertised price despite rules about underquoting the market price to entice interest.

Does anybody have recent experience of buying an apartment in Adelaide?, in particular those promoted for student accommodation

 

[Brady]

I am not surprised that it went way over the advertised price despite rules about underquoting the market price to entice interest.

Does anybody have recent experience of buying an apartment in Adelaide?, in particular those promoted for student accommodation

Possible confusion.

The above property that I linked hasnt sold yet.


Was stating I went to a different auction on the weekend which went well above reserve.

 

[Logica]

...CG would be nice but not relying on it. Budget up to $350k.....
I am interested in Adelaide investors thoughts on CBD units vs inner city units vs a traditional 3 bedroom home in reasonable suburb such as Marion. I am not interested in the outer suburbs that could attract tenants with problems.

With yields typically between 4% and 4.5% for inner and middle-belt properties, you must rely on CG. Unless you're buying to develop. In a nut shell, what and where you buy depends on what you want to do with the property = your strategy.

NB: Traditional 3br house in 5043, which includes Marion for up to $350k?
Today there were 77 houses for sale in the postcode, and there was only one around that price (the cheapest was for 350-370k)...

 

[simo123]

Thoughts?

http://www.realestate.com.au/property-duplex+semi+detached-sa-renown+park-114637987

 

[Corey Batt]

Not really a fan of 1 bed and a complete lack of character for that price. A client of mine purchased in the same area, 2 bed, same size land, 70's build for 230k. I'd pay the premium for the better stock IMHO.

 

[devank]

Not really a fan of 1 bed and a complete lack of character for that price. A client of mine purchased in the same area, 2 bed, same size land, 70's build for 230k. I'd pay the premium for the better stock IMHO.

Is it really hard to get loan for 1 bedders less than 50 sqm? CG seems to similar % to 2 bedders.

 

[Colin Rice]

I am looking to purchase my first residential IP soon, preferably something with reliable cashflow. CG would be nice but not relying on it. Budget up to $350k.

Had lunch with a good mate today in Perth who has a real estate/property company in Mawson Lakes, Adelaide and he was telling me he has some good stock, including NRAS available in Adelaide. Might be worth having a chat to?

 

[euro73]

Colin, I'd be interested to take a look. Can you PM me his details pls?

 

[Corey Batt]

Is it really hard to get loan for 1 bedders less than 50 sqm? CG seems to similar % to 2 bedders.

Hey Devank,

If greater than 40sqm it is still do-able without too many hiccups with the right lender. Under that and you'll hit all sorts of restrictions.

Colin:

90% of the apartments and townhouses in Mawson Lakes are sub 350k, that doesn't surprise me! Apartments in Mawson are generally a lot larger and secure parking, gyms and other facilities are standard for most complexes.

 

[Apollo]

I would be interested in Mawson Lakes too
please post or pm details

 

[Kippaxian]

NRAS in Adelaide. Can you tell me more about this, ay be interested.

Had lunch with a good mate today in Perth who has a real estate/property company in Mawson Lakes, Adelaide and he was telling me he has some good stock, including NRAS available in Adelaide. Might be worth having a chat to?

 

[Colin Rice]

NRAS in Adelaide. Can you tell me more about this, ay be interested.

Sent a PM.