Adelaide - Northern Suburbs

[vdm]

I am hoping someone based/currently invested in the Northern Suburbs of Adelaide is able to help me with my decision making. I have searched this forum but could not find what I am looking for.

1. I am not sure if I am too late in looking to invest in this area but do people think that it is still not too late and there is still some growth to be had ?

2. What suburbs do people think have better prospects, I have been looking at Munna Para West lately ?

3. Is it better to buy a off the plan 'House and Land' package or buy something less than 5 years old ? Depreciation is important but not at expense on capital growth. I have a budget of mid to high 200s.

4. With so much new supply coming due to the Playford alive and other housing developments - would than hamper the future capital growth in these areas ?

many thanks in advance

 

[Richrich]

Adealide Northern Suburbs

Whilst I live in Adelaide I have not invested here for years. I am concerned with the amount of land that is available in the north and that I think the state government release parcels of land when required. Thus control the supply and price. Sure you can make good money but I seem to look to other states.

 

[Comper100]

I've also been looking to buy again in the northern suburbs this time, and whilst i think its not a bad time to invest in Adelaide, I think there are better states in terms of capital growth to invest in. I already have a couple here so my next move will either be regional SA or interstate.

 

[vdm]

I've also been looking to buy again in the northern suburbs this time, and whilst i think its not a bad time to invest in Adelaide, I think there are better states in terms of capital growth to invest in. I already have a couple here so my next move will either be regional SA or interstate.

Comper100 - with the couple you have already in the Northern suburbs - what suburbs are they are in and are you happy with the rental and growth yields ? Is it easy to find quality tenants ?

 

[Comper100]

Sorry the couple I have are in the southern suburbs but I'm looking in northern suburbs, sorry if I was confusing.

 

[argentina]

I purchased an old semi in elizabeth grove in 2006. capital growth has been great. it was a cheaper property and we were not in a position to buy a newer build at the time. we did some basic renovations

there is a lot of money being put into adelaide's northern suburbs infrastructure. developers are in the area. I think it is only a matter of time before a developer looks to buy up some of the old semi's. already one end of our street has been transformed by new development.
i believe that any investment in the northern suburbs will reap rewards in time.

in terms of tenants. our old semi (being on the cheaper end of the market) does attract individuals on benefits/pensions. I have a property manager who takes care of screening tenants (i would recommend this) and I have no problem with tenants who receive benefits. Money from Centrelink is guaranteed, but an employed tenant can lose their job. In fact, in the 5 years we have owned the property I don't think we have had one working tenant. However, we have also not had any problems with them looking after it.

having said all that, I later went on to buy our next investment interstate. And you will find higher rental returns elsewhere than adelaide. also, south australia has one of the highest stamp duty in the country and that is something that puts me off being in this state.

 

[vdm]

Thanks to everyone who has replied.

I am still thinking about this, last week I was offered to buy a $320k 3BR+study H&L package at Munno Para West . I am not sure if it is better to go for something brand new (more depreciation, better rental returns, but more expensive and the 5-6 months possession delay) as against to something which is relatively new (less than 5-7 years) and still offers decent depreciation and rental returns but without the high price tag.

 

[rstephenp]

Hi,

I and my wife flew into adelaide looking at places in Elizabeth, Salisbury and the south of Adelaide.

My wife was not impressed with any elizabeth at all since we drove around the entire of Saturday. We found Salisbury a bit better. However, when we visited Christies beach, we gave an offer and the offer was accepted.

I did not consider Munno Park ...as it is further away from Adelaide CBD and lot of new stock available

Steve

 

[eKwatee]

I am hoping someone based/currently invested in the Northern Suburbs of Adelaide is able to help me with my decision making. I have searched this forum but could not find what I am looking for.

1. I am not sure if I am too late in looking to invest in this area but do people think that it is still not too late and there is still some growth to be had ?

2. What suburbs do people think have better prospects, I have been looking at Munna Para West lately ?

3. Is it better to buy a off the plan 'House and Land' package or buy something less than 5 years old ? Depreciation is important but not at expense on capital growth. I have a budget of mid to high 200s.

4. With so much new supply coming due to the Playford alive and other housing developments - would than hamper the future capital growth in these areas ?

many thanks in advance

1. I do like the Playford Alive development but you're right when you say there is still plenty to be released + there is also this http://www.lmc.sa.gov.au/home/news.asp?nid=151 so you would need to look at buying here as a long term investment with initially a slow growth rate. However with so much on the market you could potentially find a good buy. If I was buying I would look at a house around 12-24 months old in theses suburbs (Blakeview, Craigmore, Munno Para West) before looking at buying new or buying a house & land package. The reason I would look at these as when these buyers bought & built, the land & construction costs were significantly cheaper & with the market & oversupply at the moment, these buyers who are now selling are struggling to recoup even what the home currently owes them + things like all the annoying builder problems have been fixed & usually extra features like pergolas, air conditions, established gardens have all been built.

2. Now depending on what price you are looking to spend, if you could spend up to $380,000 there are other suburbs I would recommend which I believe would achieve a higher growth & much better investment overall & still getting a new or near new house. (Note: I have no homes for sale or to sell in these suburbs, I'm just providing my personal opinion & information to the discussion)

 

[Comper100]

Hi,

I and my wife flew into adelaide looking at places in Elizabeth, Salisbury and the south of Adelaide.

My wife was not impressed with any elizabeth at all since we drove around the entire of Saturday. We found Salisbury a bit better. However, when we visited Christies beach, we gave an offer and the offer was accepted.

I did not consider Munno Park ...as it is further away from Adelaide CBD and lot of new stock available

Steve

When did you do this, was it recently? I will be doing the same soon...

 

[vdm]

Hi,

My wife was not impressed with any elizabeth at all since we drove around the entire of Saturday.

Steve

I think Margaret Lomas was the one who first started to talk about the Elizabeth and Christies area openly in the media and one of things she mentioned about Elizabeth was not to go for an on-site visit because there is a good chance that people won't like it ! Congratulations that you did make a decision and your offer was accepted.