Crime RE new homes out of control in Adelaide?

[HiredGoon]

I have said previously that there should be a massive risk premium in those suburbs for non-payment of rent and vandalism, but hey - make your own decisions.

Here's my revolutionary idea for interstate investors:

Before you go and spend hundreds of thousands of dollars on a house somewhere, why don't you take the time to physically visit the location.

Elizabeth is like Mad Max with the dole and more petrol. I recommend a helicopter drop with a side gunner to take out the ferals who WILL try and strip the chopper down for scrap metal to buy ciggies and bourbon.

 

[ArJay]

LOL ^^^ what they said....for once I fully agree with both your opinions

Buying sight unseen in Elizabeth is playing financial Russian roulette IMO...

 

[steveadl]

Sigh....

I wouldn't necessarily suggest to a newbie to buy sight unseen anywhere, let alone Elizabeth.

As far as the area, yes it's a lower socio-economic demographic, but the ignorance some people on SS display is astonishing.

But what would I know, my Elizabeth North property is only on a yield of 7.8% 13 months after purchase. But yes, I'm sure it's a terrible place to invest and anyone who buys there is going to be sorry, as well as any outsiders who venture into the area will be dragged out into the street and shot.

 

[Aaron Sice]

this is where you need to buy a paintball gun.

as soon as there is trouble, call the cops and say there are some kids with flouro pink paint all over them vandalising your house.

then start shooting at them.

 

[pennyk]

Hi Steve,

Don't know whether I mentioned this already but at one point my site supervisor told me that on one weekend (where we had also had a break-in) he had a large number of clients (10? from memory) call him because their house had had a break in. The supervisor only had one home in the same area as ours, so it's not just us. At another time, I heard the site supervisor on the phone talking about how a number of their houses in Munno Parra West had had the wiring stripped out of internal walls and the gyprock ripped out.


Thanks Steve

Sounds like it could also be an inside job... someone in the building company knows which houses to steal things from at which time,
Pen

 

[ArJay]

Here's a graphic from the SA Police website...

R

 

[steveadl]

Yes, my point is it doesn't mean it's a place that you shouldn't invest in. Ask anyone in Adelaide who lives south of Salisbury and they'll whince when you mention Elizabeth. God forbid you mention that you're looking at property up there.

The same attitude was around when the houses up there cost $25k. The attitudes were the same when the houses were $50k. The attitudes were the same when the prices were $100k. The attitudes were the same when the prices were $150k. Do we see a pattern emerging here?

Guess what, the posts above illustrate the attitudes from the locals are still the same and the prices are around the $200k level. Not sure if these people have actually been to the suburbs in recent times, or if they're just reciting the usual prejudice.

Just because a lot of Adelaide wouldn't want to live in Elizabeth, there are thousands who do. I for one wouldn't want to live there, but that's because I have the option not to. It doesn't mean it's a bad area to invest in. So I would sincerely hope that people looking at investing in property in the area do proper research and not take too much heed of local prejudices.

Perhaps that's why so many of the investors who have made very large profits over the years up north aren't from SA.

 

[RumpledElf]

I lived in Elizabeth for almost a year ... worked there for about 5, so my opinion of the place is based on being there a lot from '99 to '05. Half of my street was full of nice old people with manicured yards, half was full of commodores on blocks and a house down the road got burnt down out of revenge while I was there. It has its good spots and bad spots.

Have to say the area I live now probably has more ferals per capita, but then it also has more weird people per capita too, and unlike a big area like Elizabeth everyone knows everyone else here. Takes a special kind of nutcase to live in a small town. You do fit in better in black jeans, ugg boots, a black beanie, flannie and duffel coat, though. The average income here is $200 a week (bit less than Elizabeth), please to not be buying investment properties here thankyou

 

[weg]

Got talking about vandalism with an elderly gentleman living at PW the other day, who told me his son has built 5 IP's there (elderly man lives in one) and that he has only had some windows broken at one house during the building phase.

With that said, drove into the Estate today and saw some graffiti for the first time .

 

[poppy]

I've just received a letter from my insurance company stating that unless I install the following within a certain time frame they will no longer insure me.

ie

"double cylinder" deadlocks to external hinged doors or patio bolts to external sliding doors.
PLUS window locks to all accessible windows, OR
security screens/grilles to all accessbile windows OR
an alarm system (doesn't have to be monitored)


They say this is based on my claims history, however even with all the issues I've had, I've only had one incident where I have been able to make a claim and/or it has been worthwhile making a claim. So only one incident they've paid for, which I expect to be around $1000 minus the excess.

Also I have a number of policies with this insurance company and have had no other claims. They also state that this condition only applies to this one property.

So I think insurance companies are starting to realise what is going on and there may be problems for people trying to insure in these areas.

A couple of things I'm not sure about;
How would I know whether the deadlock to the external hinged door is "double cylinder"? Wouldn't most deadlocks installed to a new home be "double cylinder"?
Shouldn't it be sufficient to have security doors (triple lock, with deadlocks) instead of patio bolts to sliding doors? Seems like such a waste of money to install patio bolts to those sliding doors when I already have close to the best in security doors installed.
What if the tenant doesn't use the security devices? (The letter doesn't state that the security devices must be activated)

I'm going to ring the insurance company tommorow and check RE the security doors being a subsitute for the patio bolts.

If you have an IP in the area, be prepared for a similar letter, especially if you are with Suncorp!

 

[craigb]

my sparky has 6 guys working for him on a large industrial site in cnbr they layed cable for two weeks it was approx 3 ton worth, gone in a day every single cable, 3 hours they reckon, must have had a hell of a project manager?

 

[craigb]

get another quote, before you change the locks, no lock can stop scum breaking into your house, hence the alarm? why bother with the locks then?

 

[Rob Williams]

Perhaps that's why so many of the investors who have made very large profits over the years up north aren't from SA.

Well said. I know quite a few locals who invest there and have made good money doing so. They have one thing in common - they are not emotional about the deal. They look at the numbers and if they work, then they do the deal. Positive cash flow is one phrase that keeps coming from them

 

[steveadl]

So I think insurance companies are starting to realise what is going on and there may be problems for people trying to insure in these areas.

......

If you have an IP in the area, be prepared for a similar letter, especially if you are with Suncorp!

For the 5 properties I and my family own in the area - no policy's have been issued with a letter like this. Having said that, we're not with Suncorp.

I'd say the letter is more likely because of your claim (yes I realise only 1), as opposed to a blanket canvas of the whole area.

 

[poppy]

Contacted Suncorp today, after much waiting on hold to get approval from high up, they decided my triple lock, deadlock security doors were an acceptable subsitute for a patio bolt on a sliding door.

Apparently the "double cylinder" deadlock for hinged doors just means a deadlock that can be locked so that it cannot be opened from the inside (without a key). I am worried about being caught up in the fine print. I had thought the definition of a deadlock was something that could be locked so that it couldn't be opened from the inside without a key. What is the difference between a "double cylinder" deadlock and a deadlock? I know I paid the builder for a deadlock on this door. I also know that when the deadlock is locked with a key, it can't be opened from the inside. However, can't remember whether the deadlock can be opened from the inside with a key (ie it may be that once locked, the deadlock can only be opened from the outside with a key, no way to open it from the inside).

I'm interested to hear whether it is normal for an insurance company to impose the above conditions after only one small claim...

 

[boomtown]

You do fit in better in black jeans, ugg boots, a black beanie, flannie and duffel coat, though.

Thanks RE I now know how to spot you in a crowd