conflicting ideas... what do you suggest?

[RumpledElf]

Doesn't matter if you find a 'nice' (lol) street in SP, the fact is that people won't bother looking in certain suburbs, lowering your tenant candidate pool to people of even less discriminating tastes, which in turn makes one ask questions.

I wouldn't live in smitty plains if you paid me, its the ar$e end of Adelaide. Sure, that's just my opinion but I'm entitled to have an opinion. And I spent 10 months living in Lizbeff Souf. People who work in the city certainly won't be looking to rent there, you're limiting your pool to people who already live in that area. People who work in the city and live out in the distant north will be in the new estates in brand new houses.

I could go on and on about the cliches about the locals - I worked in Elizabeth for 6 years. I was the only one brave enough to rent locally. Finding a rental in Elizabeth was an exercise in letting yourself be treated like the 3rd class dirt that renters are percieved to be in that area - quite a degrading experience. The only upside was that with rent assistance and a housemate I was paying $50pw

In the 10 months I lived there there was one shooting, one drug raid, one house burnt down, and about 20 cars burnt out. And that was just on my street.

Unless the area has changed dramatically since then, and apparently I was renting in one of the nicer areas of the suburb (the house I was renting was sandwiched between two immaculately kept houses owned by lovely old couples), this has turned me off the area 1000%.

 

[Corey Batt]

I wouldn't live in smitty plains if you paid me, its the ar$e end of Adelaide. Sure, that's just my opinion but I'm entitled to have an opinion. And I spent 10 months living in Lizbeff Souf. People who work in the city certainly won't be looking to rent there, you're limiting your pool to people who already live in that area. People who work in the city and live out in the distant north will be in the new estates in brand new houses.

I could go on and on about the cliches about the locals - I worked in Elizabeth for 6 years. I was the only one brave enough to rent locally. Finding a rental in Elizabeth was an exercise in letting yourself be treated like the 3rd class dirt that renters are percieved to be in that area - quite a degrading experience. The only upside was that with rent assistance and a housemate I was paying $50pw

In the 10 months I lived there there was one shooting, one drug raid, one house burnt down, and about 20 cars burnt out. And that was just on my street.

Unless the area has changed dramatically since then, and apparently I was renting in one of the nicer areas of the suburb (the house I was renting was sandwiched between two immaculately kept houses owned by lovely old couples), this has turned me off the area 1000%.

You'd be surprised RE. Not saying the area is a shining beacon of culture, the area is rapidly being developed. All the commissioned houses have been destroyed and the like. And there are a LOT of people who go to town, my partner and I both have to catch peek hour trains to the CBD, not many seats available on 3 carriage trains.

My partner is in a law firm, and neigbours in my development include one of Australia's (two?) Air force group commanders, lawyer etc. But I live in a nice part.

My mothers partner grew up in Rostrevor as a child, at this time it was all commisioned housing, lots of single mothers - sound familiar? When his parents bought the land up there they were told they were crazy for 'living in the ***-end of town'. Now today its one of Adelaide's premium suburbs, with properties going for 550k+.

I wouldn't live in Smithfield, Davoren Park, Eliz. North. I live in Elizabeth Park and this is about as slumming it as I'd get. The area still has its knuckle draggers, but to think its going to be like this long term isn't exactly wise, particularly from an investment point of view.

 

[wobbycarly]

I wouldn't live in smitty plains if you paid me, its the ar$e end of Adelaide. Sure, that's just my opinion but I'm entitled to have an opinion. And I spent 10 months living in Lizbeff Souf. People who work in the city certainly won't be looking to rent there, you're limiting your pool to people who already live in that area. People who work in the city and live out in the distant north will be in the new estates in brand new houses.

I could go on and on about the cliches about the locals - I worked in Elizabeth for 6 years. I was the only one brave enough to rent locally. Finding a rental in Elizabeth was an exercise in letting yourself be treated like the 3rd class dirt that renters are percieved to be in that area - quite a degrading experience. The only upside was that with rent assistance and a housemate I was paying $50pw

In the 10 months I lived there there was one shooting, one drug raid, one house burnt down, and about 20 cars burnt out. And that was just on my street.

Unless the area has changed dramatically since then, and apparently I was renting in one of the nicer areas of the suburb (the house I was renting was sandwiched between two immaculately kept houses owned by lovely old couples), this has turned me off the area 1000%.

I have/had the same attitude toward Norlane/Corio, even when places were <$100k and renting for about $135pw. Cost me a lot of money!

 

[veebeeseewee]

Doesn't matter if you find a 'nice' (lol) street in SP, the fact is that people won't bother looking in certain suburbs, lowering your tenant candidate pool to people of even less discriminating tastes, which in turn makes one ask questions.

What I'm suggesting as a development opportunity is that buying two ex-housing comm attached houses together is generally cheaper (I've seen buy one for 165k, or two for 150k deals). With blocks around 800-900sqm, you then have the bowl over potential of 1600-1800sqm.

In essence:

300-350k on getting such a deal, hold on for 4-5 years. Lots of development in the area provides you with nice appreciation. As you're one of the last on the block with ex-comm style, bowl over the two properties, subdivide to fit four properties on 400-450sqm, sell one/two/keep all depending on your circumstances. 8 town houses, a dozen units, what ever, there are so many options.

This process allows for dramatic increases in your portfolio growth, whilst keeping your borrowing relatively low.

Whether or not this situation is good for the current housing market is another question, but if the market continues south for a while I will be tempted to buy up half a dozen properties at the right time.

That is a good plan, CJ, just unfortunately it's not for me at the moment, borrowing can be an issue, just can't afford the cost yet. But it can definitely be on my list maybe at least a few years down the track. Thanks for sharing your thoughts, CJ.

 

[locko24]

I've told the agent that I might want to withdraw from the contract and he suggested more negotiations may be done, so I provided him the list to do and out of 13 requests, only 2 got rejected (eventhough I forgot about the toilet!):

Wow! Very impressive! Should save you a lot of time/money.

If you're happy, imo you should go ahead. Remember, if worst comes to worse, there's always insurance

 

[veebeeseewee]

Wow! Very impressive! Should save you a lot of time/money.

If you're happy, imo you should go ahead. Remember, if worst comes to worse, there's always insurance

Thanks for your support, locko. Because of that, I can easily rent out the place on settlement day and only worry about improving/maintaining other parts after the tenants move in. I'm still deciding my insurance atm, not much time to think and choose now...