buying in smithfield, munno para SA

[whippee]

Hello all again,

As I was considering building my first IP, I have gone off of the idea strictly due to building times (I want to get a house that is tenant ready). I have caught wind of the new Playford Alive development in the north. I read there will be shopping centers, new super school , parks, ect. The housing around this area is still quite affordable. I am looking at purchasing a newer, say less than ten years old, home. Not after a large block, just something low maint.
The only thing I am a bit hesitant on, is some of the current clientle in that area. I know you can get good and bad tenants in all areas but it is a known fact that the northern suburbs are a lower social economic class of people.
I would really like to think that this new development will turn some things around out that way. but am just a bit sceptical.
Does anyone on here own property out that way, if so how is it going with tenants ect?
All advice is welcome
Thanks again
Andy

 

[The Underdog]

Hi Whippee, we have an IP in Munno Para West. We built approx 12 months ago for approx 220k (villa) and it is currently rented for $250 per week with no tenant issues (good depreciation too) and the IP has definitely gone up nicely in value judging by similar properties on re.com.au. However, the house next door is also an IP and there have been a few issues with non payment of rent and looking after the property. Not sure I'd buy in the area again though as it is certainly a different rental pool as you indicated. A good PM is a must! PM me if you'd like more specific information.