Adelaide inner city unit?

W

wll6568

What's your thoughts on inner city established units? Are they worth investing?

I saw some listing pretty attractive but when I searched for the sale history, it's kinda depressing. For example, one sold at $200k in 2006 and now selling $300k. I am talking about like very eastern suburbs, the traditional prime areas.

The same location and unit would have had double the price tag in Melbourne.
 
Depends on what you mean by inner city. If you mean Adelaide 5000, then I'd avoid it.

If you mean within boundaries of say Richmond, Prospect, Maylands, Unley, etc, then go for it. I'd definitely prefer single story separated units over 'apartment' units, though.

My pointers (my opinion only)
1) Go for ones with a parking bay or 2.
2) Do check the strata history / meeting notes.
3) Go for ones you can do aesthetic internal improvement to

You can get much better value here than in other cities. Decent enough yields as well (some will be positive, depending on point 3 above)
 
D.T. said:
Depends on what you mean by inner city. If you mean Adelaide 5000, then I'd avoid it.

If you mean within boundaries of say Richmond, Prospect, Maylands, Unley, etc, then go for it. I'd definitely prefer single story separated units over 'apartment' units, though.

My pointers (my opinion only)
1) Go for ones with a parking bay or 2.
2) Do check the strata history / meeting notes.
3) Go for ones you can do aesthetic internal improvement to

You can get much better value here than in other cities. Decent enough yields as well (some will be positive, depending on point 3 above)
Click to expand...



Yeah I am talking about eastern suburbs like Unley, park side, Norwood, Kensington, etc. they look so much better value but the growth history is not impressive at all. I don't wanna hold it for ten years and gain 70k, 80k. That's deprssing.
 
wll6568 said:
Yeah I am talking about eastern suburbs like Unley, park side, Norwood, Kensington, etc. they look so much better value but the growth history is not impressive at all. I don't wanna hold it for ten years and gain 70k, 80k. That's deprssing.
Click to expand...

I think those areas will do real well. I'd rather a house than a unit though, if you can afford it.

Bottom of market in Adelaide was fairly recent, so that'll affect your recent growth stats that magazines and stuff publish. Next 10 years will include the upswing so will work out well.
 
D.T. said:
I think those areas will do real well. I'd rather a house than a unit though, if you can afford it.

Bottom of market in Adelaide was fairly recent, so that'll affect your recent growth stats that magazines and stuff publish. Next 10 years will include the upswing so will work out well.
Click to expand...

Not sure about 10 years but next 2 years could be no good as all Holden is closing, ASC is very uncertain, and unemployment is all time high. Also interest rate could bottom out at end of this year so higher interest rate would drag down house prices.

The thing about Adelaide is that all other mainland capital cities needs to fire before Adelaide can fire up as well, unless Australian Government throws in billions of dollars shoring up defence industry.

Having said that it is a great place to live and is also affordable. I wouldn't mind moving back again as I can have a very comfortable life there after I sell out Sydney and buy there in the future.
 
freerange said:
Holden closing isnt going to affect the inner city at all.
Click to expand...

Actually have a clinet who works for Holden, he lives in a nice place in Norwood, also has a nice place on Hutt St. But he's going to get a nice payout, has invested pretty well so I'm sure he will be fine :)
 
edison said:
Not sure about 10 years but next 2 years could be no good as all Holden is closing, ASC is very uncertain, and unemployment is all time high. Also interest rate could bottom out at end of this year so higher interest rate would drag down house prices.

The thing about Adelaide is that all other mainland capital cities needs to fire before Adelaide can fire up as well, unless Australian Government throws in billions of dollars shoring up defence industry.

Having said that it is a great place to live and is also affordable. I wouldn't mind moving back again as I can have a very comfortable life there after I sell out Sydney and buy there in the future.
Click to expand...

Holden closing is just media hype. There's only like 500 people left there which is a drop in the proverbial ocean when it comes to the whole employment base. According to my cousin who works there, majority of those remaining have been there for quite some time so are either at retirement age and/or nice redundancy payouts :)

If you look at http://profile.id.com.au/australia/employment-status?WebID=250 then you'll see Adelaide's unemployment isn't any different to the other Australian state capital cities
 
Sure, it isn't mind blowing but a 50% gain in 9 years isn't anything to sneeze at?

Demand in those prime areas will always be good as people will always want to live there, paricularly those which are close to your hipster "cool" hang-out areas.

I would agree with DT's area boundaries
 
D.T. said:
If you look at http://profile.id.com.au/australia/employment-status?WebID=250 then you'll see Adelaide's unemployment isn't any different to the other Australian state capital cities
Click to expand...

This seems to be data from the census which is now over 5 years old?!

South Australia currently has the highest unemployment of any of the states as measured by the ABS:

http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/6202.0Main+Features1Feb 2015?OpenDocument

& has negative employment growth measured over the last 5 years.
 
wll6568 said:
What's your thoughts on inner city established units? Are they worth investing?

I saw some listing pretty attractive but when I searched for the sale history, it's kinda depressing. For example, one sold at $200k in 2006 and now selling $300k. I am talking about like very eastern suburbs, the traditional prime areas.

The same location and unit would have had double the price tag in Melbourne.
Click to expand...

That may be the case but the previous owner may have over paid. I bet the holding cost in Adelaide would have been much less meaning you could hold several for the same cost. If you consider CG+yield the total return might look a little better. 50% growth over 9years isn't too bad and could become the new normal going forward. There are lots of markets which have seen no growth from 2007 until early 2014
 
D.T. said:
The link you provided is Australia as a whole. Can you guide me to where to get separate capital city pages?
Click to expand...

Not sure if this link will work:

http://www.abs.gov.au/ausstats/meis...4CA257E050011BA2B&&Feb 2015&12.03.2015&Latest

(Otherwise, it's click the downloads tab on the original link I gave & then the '6202.0 - Labour Force, Australia' PDF which goes through state by state break down).

Here's a chart from the RBA bulletin (released this morning):

CAa7qeOVAAAO2rs.png
 
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