Elizabeth Downs -Hot lead for low cost Mortgagee Sale

[LoneWolf]

Just remember the rules: Don't make eye contact with ANYONE, don't stop at red lights and keep a bag of small change to keep the beggars at bay.

Ok, so maybe it isn't that bad!

No eye contact - check
Dont stop at red lights - check
Small change - check

 

[Anon_]

Guys see this?
http://www.adelaidenow.com.au/reale...northern-suburbs/story-fndbnymu-1226652183253

DETAILED plans to allow construction of 38,000 homes and an extra population of 100,000 people in Adelaide's north around Virginia have been revealed today by the State Government.

Planning Minister John Rau today released the plans, which are a detailed expansion of the 30-year development plan for Greater Adelaide that plans for a total population increase of 560,000 by 2040.

The area included in the Playford Growth Areas Structure Plan covers Angle Vale, Virginia, Buckland Park, Playford North and Edinburgh. The Government expects 43,000 extra jobs to also be created in the area.

Mr Rau said it was "the biggest planning exercise the state has undertaken since the 1960s''.

 

[SDU]

Guys see this?
http://www.adelaidenow.com.au/reale...northern-suburbs/story-fndbnymu-1226652183253

DETAILED plans to allow construction of 38,000 homes and an extra population of 100,000 people in Adelaide's north around Virginia have been revealed today by the State Government.

Planning Minister John Rau today released the plans, which are a detailed expansion of the 30-year development plan for Greater Adelaide that plans for a total population increase of 560,000 by 2040.

The area included in the Playford Growth Areas Structure Plan covers Angle Vale, Virginia, Buckland Park, Playford North and Edinburgh. The Government expects 43,000 extra jobs to also be created in the area.

Mr Rau said it was "the biggest planning exercise the state has undertaken since the 1960s''.

Im an investor with a few properties out that way. Is this development a bad thing for me? Will it mean an oversaturation of properties and therefor keep prices down, or is the development a good thing with improved infrastructure etc driving prices up?

 

[pully]

a lot of the land in that area is currently used for food production and some is on a flood plan. perhaps flood mitigation is proposed? sorry to see loss of food producing land.

good luck to those who live out there on the proposed housing/new townships, but it will need a lot of infrastructure to support the residents.

for investing we would prefer established areas with capital growth.

it will be interesting to see if/how this proposal goes ahead.

 

[jim1964]

it will be interesting to see if/how this proposal goes ahead.

Sorry,i just cant get my head around this thinking from the Government.I doubt it will happen.Who remembers Monarto? More Labor ********.

http://en.wikipedia.org/wiki/Monarto,_South_Australia

 

[pully]

yes thats right jim.

 

[Daniel121]

Sorry,i just cant get my head around this thinking from the Government.I doubt it will happen.Who remembers Monarto? More Labor ********.

http://en.wikipedia.org/wiki/Monarto,_South_Australia

Very true, Jim. Instead of a new city, a Zoo (I suspect it was the largest in SA) was build there in 1983. Just visited there a couple of weeks ago.

http://en.wikipedia.org/wiki/Monarto_Zoo

 

[Brady]

Im an investor with a few properties out that way. Is this development a bad thing for me? Will it mean an oversaturation of properties and therefor keep prices down, or is the development a good thing with improved infrastructure etc driving prices up?

Usually bad at start as more properties, more competition, excess supply.

Then once that supply has been soaked up and demand increase along with the services/infrastruce being completed values increase.

 

[Anon_]

Usually bad at start as more properties, more competition, excess supply.

Then once that supply has been soaked up and demand increase along with the services/infrastruce being completed values increase.

This is what I was thinking also. Bad at start, but good in the long run.

 

[strongy1986]

Why is Elizabeth and surrounds so popular on here?

I dont get it

Is it because it's cash flow positive?

I like cash flow positive but without good growth prospects then I see it as pointless unless you have a very aggressive strategy (ala Nathan birch). Let's face it though, most on this thread will be happy owning a few properties let alone 100.

The reason I don't see good growth prospects is because it is Adelaides worst area and it is in the worst location

Feel free to correct me

 

[weg]

Adelaide is slow atm, but when Adelaide and the surrounding suburbs go up Elizabeth follows, even if there is a lag.

I bought my first IP there around 1983 - 1984 for 30K and 18 months later it had almost doubled in value.

I bought that because I saw realestate starting to rise dramatically in Adelaide and that's all i could afford as the flow on in the northern suburbs was only beginning.

That house would have peaked at around 220K in 2007 - has now probably dropped somewhat in price.

If I was to avoid these suburbs it wouldn't be because i didn't think they went up in value, it would be because they can attract a more 'challenging' type of tenant, especially if the property isn't a desirable house in a decent street.

 

[LoneWolf]

Correct me if I am wrong, but property investment is a business investment which focuses on the long run..
If you are after a quick return, perhaps other forms of investments are more suited

 

[Brady]

Why is Elizabeth and surrounds so popular on here?

I dont get it

Is it because it's cash flow positive?

I like cash flow positive but without good growth prospects then I see it as pointless unless you have a very aggressive strategy (ala Nathan birch). Let's face it though, most on this thread will be happy owning a few properties let alone 100.

The reason I don't see good growth prospects is because it is Adelaides worst area and it is in the worst location

Feel free to correct me

- Large population
- Large lots which can be developed
- CF+ from day 1
- Low vacancy rates
- Low entry point
- Close to major shops
- Close to transport
- Close to schools
- Mixed industries/employment and for those not employed doesn't matter too mcuh as they can still afford the rent
- Good historic performer

My tenants in Elizabeth East have been 100times better then other tenants in a property that costs $100k more and pay $100 more per week...
Elizabeth East tenants haven't missed a week in rent, keep the place very tidy...
They didn't make any complaints when I raised the rent and happily signed on for another 12months.

 

[Corey Batt]

Guaranteed return vs. potential CG.

8% yielding Elizabeth property, even if it only tracks inflation at say 2% is an overall 10% yield.

Another property yielding 3% with the POTENTIAL for CG has the potential for a 3-13% range. The upper range is long term unsustainable at 10% year on year gains.

Now to throw another cat into the pigeons, the average CG in Elizabeth and surrounds has outperformed in % terms the average CG rate in Adelaide.

 

[Brady]

Adelaide is slow atm, but when Adelaide and the surrounding suburbs go up Elizabeth follows, even if there is a lag.

I bought my first IP there around 1983 - 1984 for 30K and 18 months later it had almost doubled in value.

I bought that because I saw realestate starting to rise dramatically in Adelaide and that's all i could afford as the flow on in the northern suburbs was only beginning.

That house would have peaked at around 220K in 2007 - has now probably dropped somewhat in price.

If I was to avoid these suburbs it wouldn't be because i didn't think they went up in value, it would be because they can attract a more 'challenging' type of tenant, especially if the property isn't a desirable house in a decent street.

I'm not finding Adelaide to be that slow, the right property at ht right price is moving very fast.

I've know of many clients who have been out bidded at auctions, few clients who have had to put in 2nd and 3rd offers to secure properties.

I've personally been flat out for the last 10weeks.

Would love to hear from CJay to hear his views and experiences with the current market.

 

[LoneWolf]

Guys, are you suggesting that the aim is >7% for this area?

 

[spanna]

Hi all,
I am at a bit of a cross roads with my IP in Adelaide. Its a 4x2 in Edwardstown, its safe to say it hasn’t had any growth over the last 4-5 years and I’m pretty feed up with it. It is holding me back with opportunity’s that I have over here in Perth!
What is the market looking like over the next 6-12 months? I have tenants in the property until Jan and the RA says hold out if I’m going to sell until then to appeal to a broader range of buyers. Also the area is showing signs of growth??? I have been hearing that for the last few years.
I would hate to sell it after holding out for so long only to hit the up-swing in the cycle over the next 12-24 months.
Your thoughts are appreciated.

 

[Brady]

Guys, are you suggesting that the aim is >7% for this area?

Yield or CG average?

Either way its a yes to both.

Yield >7% gross at least.

I hope to have >7% CG p.a over a 10year average in 10years time.

By then will just about be the right time to develop.

 

[Brady]

Hi all,
I am at a bit of a cross roads with my IP in Adelaide. Its a 4x2 in Edwardstown, its safe to say it hasn’t had any growth over the last 4-5 years and I’m pretty feed up with it. It is holding me back with opportunity’s that I have over here in Perth!
What is the market looking like over the next 6-12 months? I have tenants in the property until Jan and the RA says hold out if I’m going to sell until then to appeal to a broader range of buyers. Also the area is showing signs of growth??? I have been hearing that for the last few years.
I would hate to sell it after holding out for so long only to hit the up-swing in the cycle over the next 12-24 months.
Your thoughts are appreciated.

Edwardstown is very close to town.

They really should of done the major works on South Rd that side of town as it always seems to be so busy through there.

How much did you purchase the property for?
What rent are you receiving?
How much is it costing you p/w to hold?
Can you do any costmetic reno's to increase the value and rent?

 

[Corey Batt]

I'm not finding Adelaide to be that slow, the right property at ht right price is moving very fast.

I've know of many clients who have been out bidded at auctions, few clients who have had to put in 2nd and 3rd offers to secure properties.

I've personally been flat out for the last 10weeks.

Would love to hear from CJay to hear his views and experiences with the current market.

Essentially the same. Getting a lot of clients telling me they are offering x, only to call me asking whether the numbers stack up if they offer 5-10-15% higher, as their offers have been rejected, other offers shown 10% higher etc. This is even above asking price in many cases.

Lowballing has come to a screeching halt. There is a lot of room to move with regards to yield thankfully for most PI's, so taking a slightly higher entry point is still coming up as a strong investment.

IMHO there is still a lot of value to be found in the market for both investing and PPoR's. A lot of prices being achieved today are still sub '09 pricing, whilst wage growth has been stronger during that time.

A strong indicator is that I've found a large number of FHB'ers and First-Time-Upgraders are having a lot of opportunities available to them in their areas of preference, than having to settle for lower priced alternatives. If you're not equity restricted and have a standard income, you essentially have the pick of the litter in most cases.

I think this all adds up to one thing.