adelaide update

[silversands]

Thx Rory,Kegger and Steve.
Nice to receive an official welcome! We had entertained strange ideas about selling them, that was b4 some serious reading (long o'due) showed thinking was flawed, suppose we were just looking for some reassurance that in other people's oppininions the area was a good choice.
Best decided b4 we built I suppose but like I said we built with the idea of flogging them off, not with intention to hang on. Would anyone like to put in their 2 bobs worth about what they expect this area to do capital growthwise in the next 2 yrs, just hoping it will stay healthy and rents will go north! Uncomfy with the idea of being negatively geared at present but hopefully not for too long? I have only found median price info for the last 10 yrs for Aldinga Beach, does anyone know what it did prior to this?

Incidentally the development next to Sunday is called Bayswood and just a little further over you'll find Seacrest and ocean acres, is that where your clan are building Steve?- You sound very knowledgable, would you give the pesky newby a heads up on your best guestimate on the best choice for new development area for ip no 4? Would like to begin new project mid year or sooner if can? We'd like to put eggs in a new basket, just to spread risk / stay safe, depending on ones viewpoint.
Wouldn't mind a suburb where knock-down and rebuild 2 town houses would work well. Busy researching, ( own due diligence and all that)but any info your inclined to want to share with us would be graciously accepted. Regards, Jo.

 

[ArJay]

I have only found median price info for the last 10 yrs for Aldinga Beach, does anyone know what it did prior to this?

Hi again Jo.

Don't have full data for Aldinga but do have the 1993 median which I gleaned from http://www.upmarket.net.au/ back in the olden days when the data was free
... it was $74,500.

Current median (4Q 2007) according to REISA is $280k so by my calcs that's makes it approx 9.2% growth per year over the last 15 years.
Not too damn shabby...

 

[steveadl]

Incidentally the development next to Sunday is called Bayswood and just a little further over you'll find Seacrest and ocean acres, is that where your clan are building Steve?- You sound very knowledgable, would you give the pesky newby a heads up on your best guestimate on the best choice for new development area for ip no 4? Would like to begin new project mid year or sooner if can? We'd like to put eggs in a new basket, just to spread risk / stay safe, depending on ones viewpoint.
Wouldn't mind a suburb where knock-down and rebuild 2 town houses would work well. Busy researching, ( own due diligence and all that)but any info your inclined to want to share with us would be graciously accepted. Regards, Jo.

hmmmm Bayswood sounds familiar, but don't quote me.

For 1D2U properties, it depends on your price range? If you are looking in the mid $200k's you can check out Para Hills, Salisbury etc.

Personally my favourite at the moment is the inner northern suburbs of Enfield, Blair Athol, Clearview, Kilburn etc. Prices here for development sized blocks are in the mid $300k's. To give you a better idea, two recent auction results are an old timber frame place in Enfield for $322k big enough for 2 houses (but we're talking immediate knockdown, no rental), and a quite nice solid brick home (which would be fine for rental) that sold at auction this Saturday - big enough for 3 dwellings on 900m2+ that sold for $394k.

Generally speaking, whilst the market has been moving pretty fast in these suburbs, you should still be able to find blocks for 2 dwellings in the mid $300k and blocks for 3 dwellings (if you can find them) for around $400k. The catrch being trying to find decent frontage is hard, a lot of them would be hammerheads.

You could also check out Woodville suburbs for similar prices. Or if you have more cash - say $400k+, check out the other ones I like - Seaton and Findon. Half way between the beach and the city, how can you go wrong!

 

[steveadl]

PS Yup, it is Bayswood. The brickies finished last week, roof and gutters are on and plumbing electrical done. He thinks gyprockers are next.

 

[silversands]

Hi, Steve. Thx for sharing all that knowledge. I spent the 1st 2 years of my life in Ingle Farm, (wish I had mum and dad's old place now!) but apart from that have always been a southern suburbs girl so advice from those in the know re unchartered territory is very useful.

Will have to go for a drive early next month.

Bayswood is coming along nicely. Almost built in there ourselves but because we were going to sell originally the margin looked healthier in Sunday. The 1st house we're building in Sunday should be handed over middle this week. Build time was 5 months. (statesman homes)

 

[silversands]

Thanks Rory, you are resourceful! It's a little lower gain than I hoped for but way better than I feared!

 

[ArJay]

Personally I prob wouldn't trust the historical data for Aldinga really anyway.

Like Kegger mentioned earlier, in the past before the expressway and general southern expansion it really was a bit "unwanted" down there. Perhaps that could've been said for most of the southern beaches (Christies, Pt Noar, Moana, etc). Now that everyone's has awoken to the value of the area the CG will be higher IMO.

I remember a close friend bought in Christies Beach about 15 years ago and tried to advise me to do so at the time. Unfort I was too immature and thought that I had better things to blow my $ on. Back then you could buy a place on the esplanade for under $200k... .....doh!

We'll prob try and get into one of these areas with the next IP (whenever that is).

R

 

[steveadl]

I also don't put that much faith in the stats. of areas that are being re-generated or have greenfields developments.

The figures from 15yrs ago in Aldinga would have been for a 1970 3/1/1 house. That house still exists, but the figures are also now being influenced by all the new developments with the 5/2/2 double storey etc. houses. So what does the median figure really mean? Comparing apples with oranges. Compare that same 3/1/1 house 20yrs ago to now, and you would have a more accurate figure.

 

[ArJay]

Very good point Steve...dead on...

 

[steveadl]

Thanks Arjay. To be honest, it's the reason I never pay that much attention to Median prices, other than to 'feel good' that an area is trending up (or down). The specific figures can be pretty much irrelevant - they are with my IP's.

Out of my 4, only 1 fits the 'median,' and therefore subsequent growth figures. The other 2 are new houses in an as yet majority old area hence worth more (but these would be a perfect example of dragging the median of the area up despite all the old houses still), and the last is an abnormally large land for the area hence worth more.

 

[silversands]

Thanks all of you!

You are all giving me a lot more food for thought. Won't set hopes too high but I think I may have found a tennant today for one of the Aldinga properties, so if it works out will manage it myself and offer her a small discount. ( I hear you all groan! BUT she is desperate for a long term, as her last 2 landlords have sold on her after 6 and 12 mth leases have expired. She is well known in the area with a bit of a reputation to protect) Don't think I can do much worse a job of managing it than anyone else. I'll hand the reigns of p/m over if I can ever afford to be a lady of leisure! or when I get burnt, whichever comes first!

 

[Mike F]

Won't set hopes too high but I think I may have found a tennant today for one of the Aldinga properties, so if it works out will manage it myself and offer her a small discount. ( I hear you all groan! BUT she is desperate for a long term,

Offer her a long lease (with rent increases), but why the discount for self managing? You should keep the saving not her

Cheers
Mike

 

[kegger]

Do you mind if we put money on how long it might be before you decide NOT to manage the property yourself.....maybe this should be a new thread.....admiration for you giving it a go. I kind of wish I had of given it a go to start with because now I would know what to look for in a PM. I think I know who my next PM will be - they have lots of IPs themselves !

Aldinga will run in the next few years. With a massive shortage of homes predicted over the next 10 years, that area will be ok. As will the inland town/mini city of Willunga........the next boom area !

And no, I don't own property there, but it is a very nice little place about 5 mins drive inland from Aldinga.

 

[silversands]

Lol!

Thanks Mike, I hear you but don't worry, discount will only be small, but your advice re the long lease including regular increases is sound.
Hey Kegger, hedge your bets!
Believe it or not I was flattered last week when a local real estate principal offered me the role of property manager! ( no I haven't accepted, but am thinking about it. ) Yes, I agree all pm's should have their own i.p.'s.
Interesting view you have of Willunga, I also think it is doing well and will only recognize more capital growth, and soon, - but why would you call it a mini city? Just curious. They don't even have a super market? HOWEVER, it sure is pretty. It's home to Russel's, finest pizzas in Adelaide! The Saturday morning produce markets are becoming a legend in their own right and gentrification is becoming a buz word in that vaccinity.
Kegger how are your plans going, any joy from DESTINY recently? What hope do you have for ypur next purchase?
Regards, Jodie.

 

[Timelord]

Hallett Cove

hi all, first time user

i have just bought a 3 bed townhouse (in a complex of 4) 200M from beach at Hallett Cove. paid $4ooK.

i am a interstate buyer so i confess i don't know the area as well as perhaps i should.

can anyone offer any thoughts on Hallett Cove

also

need a good Quantity Surveyor if you know of one?

 

[granev]

there is no "beach" at hallett cove , just cliffs and ocean.

do you have any views of the ocean at all

 

[Timelord]

NO Beach



hi there

yes good views of the ocean from both levels

the google map showed what i thought was a beach, not very big and in shape of cresent (maybe a cove even)

not to worry the water views is the main thing

what do you think of this area

 

[asdf]

hi all, first time user

i have just bought a 3 bed townhouse (in a complex of 4) 200M from beach at Hallett Cove. paid $4ooK.

i am a interstate buyer so i confess i don't know the area as well as perhaps i should.

can anyone offer any thoughts on Hallett Cove

also

need a good Quantity Surveyor if you know of one?

PM Depreciator, he'll sort you out. What rent you're getting? Its a nice place I'm told. Prices have certainly come a long way. I was told you could buy brick homes with nice ocean views for around low $300s just 18 months ago. Another boat missed..

 

[firstmillion]

RE returning calls !!

Recently am looking for my 2nd IP and found an interesting change in the REs. they hv started returning calls and today one of the agents did wait for 10 mins after the inspection to show us the house. This was not the case 8 months back when i bought my1st IP.

Seems like things have changed.

Cheers

 

[firstmillion]

The house i was looking at in Christies beach was auctioned today and passed in at 280K. Now the agent is looking for offers . The median price in Christies Beach lately has been 340K. Is it a reflection of increased interest rates ?