Elizabeth Downs -Hot lead for low cost Mortgagee Sale

[Corey Batt]

Which is why you take the northern expressway and south road

I'm not so sure about that.

Using Elizabeth as a base point, Adelaide as destination:

Main North Rd:28.7km's - 37 minutes
Expressway + South Rd:45.8km's - 46 minutes

If you were going from Gawler, absolutely that would make sense to take the expressway however.

 

[tasso10]

Hi everyone,

We have been informed by one of the local agents that there may be houses affected by land movement around the Elizabeth Area. Houses on the lower side of the pipeline have movement of the ground. I assume the pipeline they speak of is the one alongside Midway Road. I have searched through the search function here on SS and couldn't find anything about it.

I was on the ground yesterday inspecting a few areas/houses and was just curious if anyone else had experience about these conditions? Obviously I'd want to get a B&P completed prior to committing however the more info, the better.

Many thanks in advance!

 

[Corey Batt]

Hi everyone,

We have been informed by one of the local agents that there may be houses affected by land movement around the Elizabeth Area. Houses on the lower side of the pipeline have movement of the ground. I assume the pipeline they speak of is the one alongside Midway Road. I have searched through the search function here on SS and couldn't find anything about it.

I was on the ground yesterday inspecting a few areas/houses and was just curious if anyone else had experience about these conditions? Obviously I'd want to get a B&P completed prior to committing however the more info, the better.

Many thanks in advance!

Most of Adelaide suffers from highly reactive soils, but you will find this becomes more apparent with the older 50-60's stock as housing trust building quality was terrible during this period. Basic forward planning such as directing storm water drains away from the houses isn't present with a lot of properties too, which can cause a lot of the significant movement.

Over all if you're buying in the area I would suggest having an exit plan if the stock isn't A+ grade and you're not proactive with maintenance. For most people this is to develop their blocks eventually.

 

[D.T.]

Hi everyone,

We have been informed by one of the local agents that there may be houses affected by land movement around the Elizabeth Area. Houses on the lower side of the pipeline have movement of the ground. I assume the pipeline they speak of is the one alongside Midway Road. I have searched through the search function here on SS and couldn't find anything about it.

I was on the ground yesterday inspecting a few areas/houses and was just curious if anyone else had experience about these conditions? Obviously I'd want to get a B&P completed prior to committing however the more info, the better.

Many thanks in advance!

There's definitely some movement in some properties and it's usually fairly obvious with corners of the house sinking down or large cracks in walls. Some houses there have been underpinned, which costs about 10k to do.

Always good to get a b&P inspection, I use Sam from BPI Adelaide. You can use this to get an idea of whats wrong and if it'd cost anything to fix.

What areas were you looking at while over, mainly Elizabeth ones? It comes down to ones goals, but minor problems can usually be ignored if you plan to only rent the property for a short time before demolishing and developing.

 

[hugh72]

I also used Sam from BPI and can recommend him, it was a very thorough report. Most houses I looked at have at least some minor movement cracks which isn't that surprising for 50 year old houses

 

[FormerLurker]

http://www.realestate.com.au/property-house-sa-elizabeth+grove-118765195

http://www.realestate.com.au/property-house-sa-elizabeth+grove-118691571

Here is another pair, not in elizabeth downs but just across main north in 'the grove'

What sort of rental return would these get? If structurally sound a 250k pick up and 20k reno on both (10k each) could be viable.

 

[D.T.]

What sort of rental return would these get? If structurally sound a 250k pick up and 20k reno on both (10k each) could be viable.

Low 200 - 220's each side would probably be a go.

 

[hugh72]

Low 200 - 220's each side would probably be a go.

And +geared from day1 post minor reno

 

[tasso10]

There's definitely some movement in some properties and it's usually fairly obvious with corners of the house sinking down or large cracks in walls. Some houses there have been underpinned, which costs about 10k to do.

Always good to get a b&P inspection, I use Sam from BPI Adelaide. You can use this to get an idea of whats wrong and if it'd cost anything to fix.

What areas were you looking at while over, mainly Elizabeth ones? It comes down to ones goals, but minor problems can usually be ignored if you plan to only rent the property for a short time before demolishing and developing.

Thanks to both Corey & D.T.

Looking at Elizabeth purely for yield purposes with potential for future development as a get out clause similar to what you both stated.

Will keep sussing and will probably use BPI when we decide. Many thanks!

 

[spludgey]

Looking at Elizabeth purely for yield purposes with potential for future development

I really don't get that part, I think that's way, way down the road. I don't think that developments will really be all that viable in the next five years and probably longer.

Am I missing something, or is this just a spin that's being put on it for silly out of state investors?

 

[Brady]

I purchased Elizabeth East in 2012. When I can sell for $230k each I'm at a level comfortable to develop. It's coming up faster then I thought it would. New houses selling in Elizabeth Park for $220k. 5 years same as the last 3 will be well and truly ready to develop IMO

 

[D.T.]

I really don't get that part, I think that's way, way down the road. I don't think that developments will really be all that viable in the next five years and probably longer.

Am I missing something, or is this just a spin that's being put on it for silly out of state investors?

It depends. In the Elizabeth prefixed suburbs I'm inclined to agree with you - but still good to land bank for when it inevitably happens. In the (still very) cheap suburbs surrounding Elizabeth, still in Playford Council, developments stack up already if you know where to look or just happy to hold for a while

 

[tasso10]

It depends. In the Elizabeth prefixed suburbs I'm inclined to agree with you - but still good to land bank for when it inevitably happens. In the (still very) cheap suburbs surrounding Elizabeth, still in Playford Council, developments stack up already if you know where to look or just happy to hold for a while

Agreed. When I meant Future Development, didn't imply within a year or two! Happy to hold on for a while!

 

[spludgey]

It depends. In the Elizabeth prefixed suburbs I'm inclined to agree with you - but still good to land bank for when it inevitably happens. In the (still very) cheap suburbs surrounding Elizabeth, still in Playford Council, developments stack up already if you know where to look or just happy to hold for a while

So long as the investment still stands on its own two feet if you disregard any possible future development, then I obviously completely agree.

 

[MattADL]

Thought I might ask in here, as it might be something agents do in the area.

Tenants are leaving mid-April and have been given notice. Agent has said they will do opens after the previous tenant has moved out.

Is it common is Elizabeth to wait till the tenant has vacated to do opens? Every rental Ive lived in Ive always had them during my lease.

 

[Joeyv]

What are everyone's opinions on selling a house I bought a while back in elizabeth.

Only paid about 160k for it, as it was a mortgage sale.

Have had it valued at 220-230k

If I sell for $225k will make $40k approx after fees and tax.

So it seems like a no brainer.

So question is sell now or hold till later?

Currently get $280 per week rent.

Thoughts?

 

[D.T.]

What would you do with the money joey?

There's transactional costs here. REA commission and CGT if you sell, then SD / LMI again when you invest the money elsewhere.

Why not just hold onto it?

Especially if its developable?

 

[hugh72]

What are everyone's opinions on selling a house I bought a while back in elizabeth.

Only paid about 160k for it, as it was a mortgage sale.

Have had it valued at 220-230k

If I sell for $225k will make $40k approx after fees and tax.

So it seems like a no brainer.

So question is sell now or hold till later?

Currently get $280 per week rent.

Thoughts?

Sounds like a good buy, it is yielding 9.1% on approximate purchase price why would you sell? Just use the equity and income for your next project.

 

[Joeyv]

Sounds like a good buy, it is yielding 9.1% on approximate purchase price why would you sell? Just use the equity and income for your next project.

Yes corner block bought for $160k approx ,rent for $280

Council rates say $215k if that anything to go by.

Appraisals at $225k

I just feel if I can sell for $225k I can reduce debt and buy more.

Don't need to sell to buy more just want to reduce debt a bit

 

[TMNT]

why dont you tell us the suburb and street and renoed/unrenoed

and people will give you an idea,
personally I think council values are a very dangerous way to get an idea of value