Cheaper Adelaide Beach Suburbs

Hi all,

A mate of mine has his mind set on building a duplex or a house or two down in a beachside area in Adelaide. He is looking at the cheaper beach side suburbs with the potential to grow. He wants me to go in with him in this project. He is looking at Christies Beach as starting point. If we get a duplex, looking at selling one and keeping the other ?

I have looked at the more expensive ones such as Glenelg, Semaphore etc but that is out of our league. Anyone got any suggestions of cheaper suburbs with potential ? Or have we missed the boat for this type of investment. I know there is some healthy infrastructure going in down there of late....

Always liked the Adelaide market and potential.

Thank You
 
Heya,

What's your budget? And why do you want to build a duplex near the beach? If you come inland a little, like the suburbs next to the beach ones, the prices come down significantly and more likely to find something that works. Eg Christie Downs instead of Christies Beach, Ethleton instead of Semaphore, etc etc.

Seems odd to have 2 criteria like that. Either you'd want to be near the beach or you'd want to find a project that makes a profit. Sounds to me like you have an emotional attachment whereas I'd rather find a profit not really caring where it comes from.

There's definitely no shortage of opportunities available in Adelaide at the moment, but you'll need to do some looking.
 
Hi Dave,


Mate first thing is to make money. We live in Sydney. We wont be ever living in it but we want to do what is basically least risky option. WE are going to fly down and have a good look around and get a realistic idea of what we are trying to do.

The suburb choice is the key and then we can start to look closer at the infrastructure and the other ticket items. The closer to the beach was my mates preference for capital growth whilst I am leaning towards transport & infrastructure and jobs. Between both of us we are either going to have shocker....
 
I think DT has raised a great point. Two arguments going on simultaneously - beachside location, and profitability. The sub argument of development profits.

Sometimes the best development profits can result in stock which may not make the best investments - so best to offload.

Other times you will have a development which has marginal profitability, but the end stock has a good long term trajectory.

Then you have the consideration of beachside vs anywhere else. I'd be careful not to fall too much in love with the idea of beachside developing, whilst there is an obvious reason for long term appreciation in values, the market may not present opportunities which can outstrip the other areas. Weigh up each property on it's individual merit, than pidgeon hole yourself into a specific submarket. :)
 
He is looking at Christies Beach as starting point. If we get a duplex, looking at selling one and keeping the other ?

Christies Beach is good but good luck with a duplex in there.I went for the poorer cousin at Christie Downs,and so far so good rent yields and good CG over the last 12 months.
 
If you want cheaper Adelaide beachside suburbs with potential for capital growth then you are on the right track with Christies beach.
 
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