adelaide update

[singingtheblues]

median prices for dec

aussieboy2010, i'd say that with such a low sales volume the figures mean very little - and Wayville has a wide range of property on offer from doer uper 2 bed cottages to luxury rennovated houses $1mil+ - properties on the main road v properties in nice cosy cul-de-sacs.
i'm still cautious about adelaide prices despite the hype (although they are certainly increasing across the board) - it's difficult to say quite what the value of a suburb is - the number of properties for sale are well down on the prior year - from 'the advertiser's' home opens listing - last year (spring 06) there were around 1800 home opens each weekend - now it's down to less than 1000 (spring 07) - the lack of supply has certainly helped to push prices up (& currently adelaide is having a net inflow of people as well) - i'd say each house needs to be judged on its merits - (block size, state of renovation, location etc) this is verified by the increase in the number of houses going to auction - a sign of a) a rising market and b) that valuers are really not sure of the market value since there are so few similar properties in the same area for sale to compare against.
Wayville is a great area & i'm sure that it has risen & will continue to do so - however 50% is perhaps an unrealistic indicator of reality - maybe next december qtr there will be 3 sales - 450k, 500k & 1mil - then your median change will be -50%! - however i wouldn't be throwing myself off the top floor about it! ha ha ! - ot LoL as the online community says

 

[Gools]

Thanks Steve.

As you know, I recently bought in Wayville. Was just looking at those Wayville figures and unsure how to interpret them.

It says that the median price went up from 580k to 873k, a change of 50%? Clearly there was a s low number of sales that influenced these figures. How can we determine the true change in median price for that area?

Aussie,

I bought a 2 bedroom unit on Rose Tce early last year for $165k. Seeing as though you can't get a 2 bedder anywhere near the city for under $240k now I think we may have seen a 40%+ rise on ours, not that it shows what houses in there have been up to but as you know it is right next to the CBD and will always be a great suburb for solid investment.

Gools

 

[TommyR]

I am looking at something I have no experience with (although I have 3 investment + PPOR properties) My sister has land already approved for subdividing for 3 houses in Gawler for around 120k, however they need the cash. I feel it is good to go ahead, is it OK to sit on the land for a couple of years, or is it best to build asap before increased costs occur? In S.A, what would building costs be for a simple 3 X 2? Is there a reasonable margin in building and selling?

I am also based overseas with work, is this too complicated to carry out whilst overseas?
Thanks
Rob

They land seems very cheap, anything Ive looked at recently was a lot more than 40k per site!
I'm currently doing a subdivision at Christies Beach and ended up using a major building co in Adelaide - I notice in their brochures they can build a 3brm 140m2 house for about 100k
You could do it from overseas, what I'm doing is very hands off, I just write cheques

Tom

 

[steveadl]

They land seems very cheap, anything Ive looked at recently was a lot more than 40k per site!
I'm currently doing a subdivision at Christies Beach and ended up using a major building co in Adelaide - I notice in their brochures they can build a 3brm 140m2 house for about 100k
You could do it from overseas, what I'm doing is very hands off, I just write cheques

Tom

Who are you using Tom? Have you built with them in the past. Sounds like what I'll be looking for down the track - hands off approach.

 

[TommyR]

Hi Steve,

We are using Sterling Homes, we've got six places at three locations signed up with them at present. Their pricing was very competitive, even though like all builders they show you one thing ie their display home, then quote to build you something that looks similar but without the extras and the nice bits. When we compared apples with apples they were a lot less than the three other quotes we got. For example, we are building two town houses at Glengowrie their price was between 40k - 100k less than the other builders for the two.

We have to organise things like air con, landscaping, driveway etc ourselves, they would do it but they weren't really competitive on those things, in fact they were quite expensive, I guess they didn't really want to do them.

They beauty of all this is I don't have to be involved on a daily basis.
If you decide to go down this track PM me, it might be worth getting together and having a natter!!

Tom

 

[steveadl]

Thanks for the info Tommy. They sound pretty good - hands off which is what I want. I'm not looking to build for a couple years yet I wouldn't think, but will definitely take you up on the offer of catching up to see how you've gone with the process.

 

[Gools]

Tom, can I ask who else you got quotes from? Feel free to PM me the details if you don't wish to make it public. Just going through the builder selection process at the moment. It appears that any of the extras like the landscaping, fences etc that you mention most of the builders put a fairly large mark up on it so it's cheaper to organise it yourself.

Gools

 

[Sam Watts]

Hi Steve

Can you possibly recommend a similar suburb to Thebarton being close to the CBD for around $300k - $350k? You are right about Thebarton there doesn't seem to be anything up for sale in that area...

Thank you for your stats I will definitely be looking through this evening.

Thanks Sam

 

[steveadl]

Hi Steve

Can you possibly recommend a similar suburb to Thebarton being close to the CBD for around $300k - $350k? You are right about Thebarton there doesn't seem to be anything up for sale in that area...

Thank you for your stats I will definitely be looking through this evening.

Thanks Sam

Sam,

As close as Thebarton to the CBD - no, won't happen. You could look at surrounding suburbs of Thebarton, where for an extra couple km's you may be able to find something eg. Welland, Hindmarsh, Findon etc.

About the closest I think you'll get to the CBD with a decent sized block for that price range (& please, someone correct me if there are others!) would be Blair Athol, Kilburn, Enfield, Clearview and probably not anymore but Sefton Park and Broadview. You could also look to west in the Woodville suburbs, but again we're talking further out.

You will get closer if you aren't looking for development size, but from memory you were?

 

[Gools]

Sam, suburbs like Thebarton that close into the city I just don't think you are going to find a 3 bedroom house on some land for $350k. You may want to push your search area out a little bit. I would have said maybe an older house in Brompton might be your last chance that close to the CBD. There is lots of development going on in there at the moment so average prices went up a fair bit last year but there are still older homes available through there.

You can get old houses through the Hillcrest area with sub-division potential but that is a bit further from town than you are looking. I like the "View by Map" feature on realestate.com.au. Do a whole of Adelaide search for $300k to $350k 3 bedroom places and see what pops up on the map.

If you need any more motivation then have a look at this article I was reading this morning in the paper. Says it all really.
http://www.news.com.au/adelaidenow/story/0,22606,23064214-5006301,00.html

Gools

 

[Gools]

A bit more news released today regarding the SA defence sector.

http://www.news.com.au/adelaidenow/story/0,22606,23071821-5006301,00.html

 

[Sam Watts]

Thank you guys,

Sorry for the delay in responding. To be honest I am quite confused on where it is I should be buying in Adelaide. I have started researching the Adelaide market but having only been there twice it is so hard to know a good suburb to a bad one. Previously I have always foccused on IP's in Brisbane. I have a relative in Mt Gambier who is convinced I should be buying there with the new pulp mill pushing through...

I am not so worried about the size of the land just the stock standard 600 plus sqm. I am looking for capital growth with a good rental return that i am not having to top up too much. A 3 bedroom house either close to the city or close to the beach is usually what I aim for that i am not having to spend money on repairing. I have started researching Christies Beach and have noted there are only two properties currently for sale in Thebarton. Steve I will definitely start researching the areas you mentioned.

Any further advice you can give is greatly appreciated.

Thanks Sam

 

[steveadl]

Thank you guys,

Sorry for the delay in responding. To be honest I am quite confused on where it is I should be buying in Adelaide. I have started researching the Adelaide market but having only been there twice it is so hard to know a good suburb to a bad one. Previously I have always foccused on IP's in Brisbane. I have a relative in Mt Gambier who is convinced I should be buying there with the new pulp mill pushing through...

I am not so worried about the size of the land just the stock standard 600 plus sqm. I am looking for capital growth with a good rental return that i am not having to top up too much. A 3 bedroom house either close to the city or close to the beach is usually what I aim for that i am not having to spend money on repairing. I have started researching Christies Beach and have noted there are only two properties currently for sale in Thebarton. Steve I will definitely start researching the areas you mentioned.

Any further advice you can give is greatly appreciated.

Thanks Sam

Yield are around the 4-5% level (obviously less in some areas), so chances are you will have to do a bit of topping up of the loan.

If you want low maintenance, then perhaps look for a house that has been recently updated so shouldn't have things going wrong with it. The new fittings will also help you out a bit with depreciation etc. Without having much of a look around - this sort of thing jumps to mind http://www.realestate.com.au/cgi-bi...er=&cc=&c=16619557&s=sa&snf=rbs&tm=1200955935 . (Note: I'm not recommending this one necessarily as I don't like that it only has 2br, but it's just an example I'm aware of off hand.)

Bare in mind, with places that have been renovated like this - they usually build it into the price, so you'll be paying for it in effect anyway. So it may actually be cheaper to buy an old house that may just need the hot water system etc. replaced at some point. I wouldn't be overly scared of buying an old house because of maintenance issues, but that's just me, and everyone is comfortable with different scenarios.

You may not be interested in the land as such, but be aware that if you want to have over 600m2 (in a lot of councils) you are getting into the sub-dividable properties - which even if you aren't interested in doing, is still priced in there.

As far as knowing a good suburb from a bad one - everyone here will be more than happy to give you info. on the suburbs you have questions about.

 

[Sam Watts]

RIGHT thanks Steve once again great advice.

I will keep you posted!

Sam

 

[burty85]

Personally I'd be looking down south in that price range.
As Hobo said, O'Sullivans Beach is the go or even Christies Beach if you can...

IMO the prob up north is that there isn't the coastal charm of the southern areas....furthermore if the Holden plant ends up shutting shop the long term growth will suffer badly...

My opinion FWIW
R

I have to disagree hear to a point, what would be the likely hood of of the plant shutting down completly, maybe downsizing, sure it will hurt the area a little. Tho there is a new army battalion being rasied in the next few years making a 1200-strong 7th battalion Mechanised Battle Group at Edinburgh from 2011.

http://www.ministers.sa.gov.au/news.php?id=2193

 

[imonmyway]

Is the SA population increasing?

My concerns about buying in SA and Tassie have been that I thought there populations were fairly static where as places like Melbourne and QLD are increasing at record levels.

Happy to be corrected on this though

 

[Sam Watts]

Further advice

Hi guys

I am currently researching the following suburbs in Adelaide - Goodwood, Glandore, Torrensville and Richmond. Any good or bad advice you may have on these suburbs would be greatly appreciated. I am looking to visit Adelaide over the next couple of weeks to get a better feel for the place but as you know there is nothing like being a local.

Thanks Sam

 

[mingling]

My experience to purchase a house within 6-7km of Adelaide CBD.

Hi Sam,

I have never been to Adelaide and also do not know where is good or bad suburb. I would like to share with you my remote purchase at Adelaide's CBD area.

like you, i am also target to invest as close to Adelaide CBD as possible within my budget of under 400K, hopefully good rental yield, minimum maintenance, ..the list go on.

After a solid 1 month of concentrating on Adelaide purchase, make offers, rejected offers return, cancel a contract before the form 1 (cooling off period, ie 2 business working day), deal with some unprofessional seller agent, even cooling off a property after the building/pest inspection done........ spend lot of time and phone bill.

sigh ! I manage to buy a house 6-7km to Adelaide CBD and it is under 400K, with potential subdivision of 2 dwelling (at the stage), very old house, need some money to fix some main issues reported in building/pest inspection. Rental yield is about 4%.

It is getting harder to get a property under 400K within 6 km of Adelaide CBD area. (I am referring to land+house with sub divisional potential).

I also would like to take this opportunity to thanks Steve, he has been a great help.

cheers,
Ming

 

[Gools]

Hi guys

I am currently researching the following suburbs in Adelaide - Goodwood, Glandore, Torrensville and Richmond. Any good or bad advice you may have on these suburbs would be greatly appreciated. I am looking to visit Adelaide over the next couple of weeks to get a better feel for the place but as you know there is nothing like being a local.

Thanks Sam

Hi Sam,

Just a few things to thing about for you.
Plane flight path for Torrensville and Richmond. There are good parts in those suburbs and parts that are a little cheaper because of this.
Also rail and tram lines through Goodwood and Glandore you should keep an eye on. Also the South Road upgrade may be a pain for a year or two but once completed will benefit these areas.

A good drive around will clearly show you where you should and shouldn't be looking in these areas.

I, personally, like your choice of suburbs now, much better than the Southern Suburbs you were looking at before in my opinion.

Gools

 

[Sam Watts]

Thanks Guys. I better book that flight sooner rather then later. My only other concern is almost everything is up for auction which is very difficult for me being based in Sydney.

Happy Hunting

Sam