Elizabeth Downs -Hot lead for low cost Mortgagee Sale
- Thread starter Stangman
- Start date
LOL too funny Anon - we will be laughing in 10 years not the idiot agents who have good deals around them every day and don't act!
I think I might move to Adelaide for a few months to really hone my skills on the market! Don't discount the Southern suburbs either as they are just as good but not mentioned enough!
I think I might move to Adelaide for a few months to really hone my skills on the market! Don't discount the Southern suburbs either as they are just as good but not mentioned enough!
Not if I can smell $$$
Will move to Antarctica with no clothes for the right amount!
Thanks Stangman for the outline. I always thought Grove and South were good suburbs as next to Vale.
Am not worried about the hoons etc... as I'm not living there - and you guys under appreciate the area so it keeps prices low for now - so opportunity for me.
The interesting thing about this area is just 10km south prices are at least double (so arbitrage opportunity as gentrification and urban sprawl takes effect.)
Will move to Antarctica with no clothes for the right amount!
Thanks Stangman for the outline. I always thought Grove and South were good suburbs as next to Vale.
Am not worried about the hoons etc... as I'm not living there - and you guys under appreciate the area so it keeps prices low for now - so opportunity for me.
The interesting thing about this area is just 10km south prices are at least double (so arbitrage opportunity as gentrification and urban sprawl takes effect.)
Good summary overall Stangman.
The 2nd CBD argument is actually running off government planning for the next 30 years. Council chambers, district police, medical, cinemas etc. are all centralised along Elizabeth Way, and for a reason.
They are still planning extensive development for the inner area, with a proposed 8 storey high-rise on Philip Highway, white collar offices next to the train interchange. Also have the re-designation of Elizabeth West as "Edinburgh North" as the businesses in the area increasingly win engineering contracts for the RAAF and BAE.
All very interesting stuff, I'm sticking with my long-term view of Elizabeth.
The 2nd CBD argument is actually running off government planning for the next 30 years. Council chambers, district police, medical, cinemas etc. are all centralised along Elizabeth Way, and for a reason.
They are still planning extensive development for the inner area, with a proposed 8 storey high-rise on Philip Highway, white collar offices next to the train interchange. Also have the re-designation of Elizabeth West as "Edinburgh North" as the businesses in the area increasingly win engineering contracts for the RAAF and BAE.
All very interesting stuff, I'm sticking with my long-term view of Elizabeth.
Anon- Love your humour mate. That was a pearler.
JWR, Working with your theory of Elizabeths future , properties like the following would be excellent investments -
http://www.realestate.com.au/property-house-sa-elizabeth+park-109551361?listingType=buy
http://www.realestate.com.au/property-house-sa-elizabeth+park-109551261?listingType=buy
http://www.realestate.com.au/property-house-sa-elizabeth+park-109533531?listingType=buy
Land is a very reasonable price too -
http://www.realestate.com.au/property-residential+land-sa-elizabeth+park-200049431
http://www.realestate.com.au/property-residential+land-sa-elizabeth+park-200049436
When you can buy new homes or land at the above prices, why would you buy a house on a 700-800m2 block and demolish for the purpose of subdividing?
Stangman
JWR, Working with your theory of Elizabeths future , properties like the following would be excellent investments -
http://www.realestate.com.au/property-house-sa-elizabeth+park-109551361?listingType=buy
http://www.realestate.com.au/property-house-sa-elizabeth+park-109551261?listingType=buy
http://www.realestate.com.au/property-house-sa-elizabeth+park-109533531?listingType=buy
Land is a very reasonable price too -
http://www.realestate.com.au/property-residential+land-sa-elizabeth+park-200049431
http://www.realestate.com.au/property-residential+land-sa-elizabeth+park-200049436
When you can buy new homes or land at the above prices, why would you buy a house on a 700-800m2 block and demolish for the purpose of subdividing?
Stangman
That is pretty much on the money.
The area is being rapidly redeveloped, rents are rising. As the rents become 'unaffordable' for the 'hoon' types, they further travel down the sprawl. This has happened for generations. A lot of the less desirable types in Elizabeth were in Salisbury 10 years ago, etc. Of course some will stay, however the massive shift in demographic garners a different culture.
In regards to Stangman about old block vs. Post subdiv properties:
You are right, it wouldn't make much sense to do a subdivision in this current environment, when you can get H/L packages as such (however beware the sting of footings, the builders have altered the packages specifications to keep the prices artificially low).
My investment strategy is to still buy large old blocks with free standing houses, or pairs of duplexes, with the intention of subdivision/redevelopment in 8-10 years. The idea behind this is the most capital gains can be achieved when you are one of the last on the street to redevelop and buying earlier on at a cash flow neutral to positive puts you in a good position to do substantial development (demolish duplex pair and replace with 4 townhouses) at the later dates.
Don't worry, cold feet is a sign you are evaluating your decisions and aren't assuming that all decisions you make are right. A good sign. 
In regards to money being put to better use, I'll avoid talking about CG for the moment as outside of mining towns it is difficult to assume growth over the next 12 months at the very least. Under that assumption what is the yield looking like, what do you think long term growth will be like, how does it factor into your overall investment strategy? I look at neutral to CF+ properties, as I prefer my investments to compliment, rather than drag down, my overall investment portfolio and its growth.
Market crash... I won't pretend I have a crystal ball, but my personal opinion and beliefs centre on the fact that the wage growth in the area, coupled with the cheap prices will make it difficult for the market to sustain low-values such as we see now. Properties near $1m in inner Melbourne may see more significant falls, but a sustained long term fall would have to come from a catastrophic event no doubt.
In regards to money being put to better use, I'll avoid talking about CG for the moment as outside of mining towns it is difficult to assume growth over the next 12 months at the very least. Under that assumption what is the yield looking like, what do you think long term growth will be like, how does it factor into your overall investment strategy? I look at neutral to CF+ properties, as I prefer my investments to compliment, rather than drag down, my overall investment portfolio and its growth.
Market crash... I won't pretend I have a crystal ball, but my personal opinion and beliefs centre on the fact that the wage growth in the area, coupled with the cheap prices will make it difficult for the market to sustain low-values such as we see now. Properties near $1m in inner Melbourne may see more significant falls, but a sustained long term fall would have to come from a catastrophic event no doubt.
Anon_, Consider yourself slapped!
Buyers Remorse needs to be nipped in the bud quickly. Why did you decide to buy these properties? Just remind yourself of the reasons.
I am currently covered in filler dust. Yesterday i scrubbed mould from the bedroom ceiling. Hard going at the moment as i paint through the house at the Vale - could easily have negative thoughts, but i just keep reminding myself of why i am doing this.
Capital Growth may not occur this year or for the next few years, but it will at some stage and that is when we will reap the rewards. Rents are going to increase as the years go by. If the area does develop as CJ and JWR suggest, you are surely on a winner.
I have been absolutely negative about property values for the last ten years and still consider it an absolute bubble, yet in that time property values have increased dramatically. I am not going to miss the next upsurge in prices!
I am investing in these properties with my son. We have argued about where we were going to buy property. I wanted to buy in Mt Gambier, he wanted local to us in Elizabeth. Eventually i relented. Main reason is immigration. Over the last couple of years a lot of Somalians and Muslims are moving out here. Obviously they are here for the lower house prices. So we cannot see these sub 150k properties ever becoming any cheaper.
Have Faith! In my opinion you have backed a winner long term.
Gotta get back to sanding.
Stangman.
Buyers Remorse needs to be nipped in the bud quickly. Why did you decide to buy these properties? Just remind yourself of the reasons.
I am currently covered in filler dust. Yesterday i scrubbed mould from the bedroom ceiling. Hard going at the moment as i paint through the house at the Vale - could easily have negative thoughts, but i just keep reminding myself of why i am doing this.
Capital Growth may not occur this year or for the next few years, but it will at some stage and that is when we will reap the rewards. Rents are going to increase as the years go by. If the area does develop as CJ and JWR suggest, you are surely on a winner.
I have been absolutely negative about property values for the last ten years and still consider it an absolute bubble, yet in that time property values have increased dramatically. I am not going to miss the next upsurge in prices!
I am investing in these properties with my son. We have argued about where we were going to buy property. I wanted to buy in Mt Gambier, he wanted local to us in Elizabeth. Eventually i relented. Main reason is immigration. Over the last couple of years a lot of Somalians and Muslims are moving out here. Obviously they are here for the lower house prices. So we cannot see these sub 150k properties ever becoming any cheaper.
Have Faith! In my opinion you have backed a winner long term.
Gotta get back to sanding.
Stangman.
Thank guys for reassuring me!
Sadly though I just had a call from my bank saying they would not give me a 90% loan, only at 80%, but I did want to initially put that much of my savings into the properties. I'm actually quite surprised and very disappointed in them. I know I don't have my last years NOE yet, but have all the BAS's. I've been with them for probably about 10 years and they can see how much I have in savings and how much money comes into my accounts.
Sadly though I just had a call from my bank saying they would not give me a 90% loan, only at 80%, but I did want to initially put that much of my savings into the properties. I'm actually quite surprised and very disappointed in them. I know I don't have my last years NOE yet, but have all the BAS's. I've been with them for probably about 10 years and they can see how much I have in savings and how much money comes into my accounts.
I do actually have a broker looking into this also. Initially my bank said no but after talking to them, they said they might go 90% now but it's under 'their discretion'. I'm seeing them later this arvo but the interest is 6.62% which is quite high, so would look to refinance after. See how we go.
Since the houses you bought you paid fair value for you won't be getting any extra equity any time soon - so I would get 90% loan now even if its a little higher rate - its not too much extra.
Then when you buy the next house you can go with a different lender and bring the other ones over at a cheaper rate.
Interest rate isn't so important - its just about getting the loan. When you get the loan you can start playing games with the banks to get the rates lower.
Then when you buy the next house you can go with a different lender and bring the other ones over at a cheaper rate.
Interest rate isn't so important - its just about getting the loan. When you get the loan you can start playing games with the banks to get the rates lower.
