Adelaide Investment Opinion

[wll6568]

Opinion, opinion!!!

Which one would you go with:

- A brand new house and land package, with around 400sqm block of land, less than 7km from cbd. Brand new, nice for depreciation. About $450k total price.

- An existing old house (70s built) with about 750sqm, less than 7km from cbd, very old, but can still rent out for $320 per week. About $500k price tag in eastern suburb, or $300k in outer ring suburb.

- An existing character home (victorian style), with 800sqm, less than 7km from cbd in a classic suburb, nicely renovated, priced at $650k. Can probably rent out for $450/week.

- A two bedroom unit/ apartment in high end suburb, priced around $350k, with rentable price of $350/week.

- An existing old house with about 10k sqm of land, in Adelaide hill, priced around $700k.

 

[D.T.]

Which one best fits your strategy?

 

[ellejay]

look at the numbers. what do you expect any of the above to achieve for you?

 

[bez23]

Opinion, opinion!!!

- An existing old house (70s built) with about 750sqm, less than 7km from cbd, very old, but can still rent out for $320 per week. About $500k price tag in eastern suburb, or $300k in outer ring suburb.

If my understanding of outer ring suburb is <12km from CBD. I'd go with this one with the 300k renting out for 320 on a subdividable block. But as others have said, it might not suit your personal circumstances and strategy.

 

[Brady]

- An existing old house (70s built) with about 750sqm, less than 7km from cbd, very old, but can still rent out for $320 per week. About $500k price tag in eastern suburb, or $300k in outer ring suburb.

Either one of these is what I would be doing as long as block could be developed at a later stage. Doesn't mean that you have to but just having the potential will get you the best growth IMO.

 

[Corey Batt]

Either one of these is what I would be doing as long as block could be developed at a later stage. Doesn't mean that you have to but just having the potential will get you the best growth IMO.

Agreed. The development potential adds a third type of purchaser into the market after owner occupier + investor - the developer. This blows a lot of prices out of the water, because so long as the development numbers stack up (which inner suburb land values are always being snapped up due to their relative scarcity), you have a strong market which will keep pace.

 

[Rixter]

WLL, this is what I do...

Ask yourself does it fit into your chosen strategy & is buying this particular property getting you closer to your reason why you are investing or is it taking you further away?

If its towards your reason then you are one step closer.

If its away then keep looking for the property that does.

I hope this helps.

 

[Jaggannath]

#2 or #4, I try to stay away from anything that might have an encumberance placed on it like character homes, as it prevents development. #4 is because you can usually rent them with minimal effort, you rarely need to bother with a PM.