Elizabeth, North Adelaide, SA

Looks like we're in the same boat...

I'm in the same situation as you, living in Sydney and do not have a clue about South Australia isn't the easiest task to buy IP number II:( . Saying that I bought my first IP in QLD, and it took a lot of hard work and time. :)

I guess I'm looking for some local knowledge from our south Australian experts, key suburbs, states general prediction, general state plan for consideration etc.

Considering we're are looking at investing in the $100'sK, and as I'm a small time investor with 3 kids, a big heart and big plans, I need to take a real good look leap before I leap as I cant afford to have a mistimed jump :D (if you know what I mean).

good luck to you too mate

Trev
 
OK fellas, go back to the start of this thread and read it all the way through. SSers (including myself) have posted heaps of info. on what's going to be happening in SA/Adelaide, and in particular Playford (Elizabeth) area over the next 5-10yrs.

Plenty of links to go look at such as Planning SA, Major Projects website etc. But here's a recap of the main points why SA is coming up to a big boom a la WA:
- Billions being spent on Defence projects in the state, including $1B+ in the Playford area including a new army batallion relocating to the RAAF Edinburgh base.
- Massive amount of new housing developments in Andrews Farm, Munno Parra, Blakeview etc. + re-development of lots of older houses in the area (ie. knock down start over) therefore pushing prices in the area up.
- Both major shopping centres just finished multi-million dollar upgrades - Munno Parra Shopping City & Elizabeth City Centre.
- Northern Expressway starting construction in another year or two to link Port Adelaide with the Barossa Valley cutting right through the area including exit ramps directly into these suburbs.
- Playford City Council very proactive in establishing new business including an industrial and technology hub.
- Still pretty much the cheapest area in Adelaide to buy, with pretty much the only stand alone houses for the sub $200k level.
- Huge mining boom coming in SA from which all suburbs will benefit with Billions being spent on new projects incl. Prominent Hill, Olympic Dam etc.
- I've forgotten multiple points I'm sure :D

Check back through this thread to find all the relevant links to the info. about the above mentioned projects - any problems, let us know.
 
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Good on ya Orcades!

Mind sharing the details ie. land size and purchase price?

Cheers
Steve

Our house settled today - took a while as the vendors had to do some repairs first. The land size is 620sqm and the purchase price was $170,000. It's more expensive than some others we looked at, but we thought it was worth it as it is a good solid house, double brick, fully insulated, ducted air con, looks low maintenance, and is on a nice street. The tennants are paying $190/week.

We went down there with the idea of buying a cheaper house on a big block and subdividing at a later stage. But the problem for us was that the houses we found in this criteria looked like they needed lots of repairs/maintenance. As we are based in Sydney, we didn't want the hassle. We feel really happy with our purchase.

Trevor - with your question of buying in Sydney or Elizabeth, I don't think you can go too wrong with either. If you decide to buy in Elizabeth, I would recommend a trip down there - it was a big help to me. Some streets were good and some streets were run down and rough. I liked seeing it for myself.

We are about to start looking for a studio in Sydney. We have a 2b flat in Darlinghurst, and one next door sold at auction last week for loads more than I expected. Inner-city flat prices seem to be on the rise. I think that in another few years there will be another boom. At least I hope so!
 
Margaret Lomas - Adelaide

Went to Margaret Lomas' seminar in Sydney last evening and she could not talk up Adelaide enough - she was still bullish on Elizabeth and said all of Adelaide is poised to go the Perth way since there had been no significant growth there for a while. Even likened the SA economy to the WA economy with the mining boom set to happen !

Peter Koulizos and now Margaret Lomas - the writing seems to be on the wall !

Orcardes, Steve, Mystery and to all who've taken the plunge there - well done !

Cheers.
 
IP in Elizabeth

Hi Steve

I have just joined today! I should have known about this website a long time ago...I have just purchased another IP in Queensland but feel it's time to start researching Adelaide. Any tips you can give me on locations? Reading your comments it seems Elizabeth is the way to go?

Thanks
Sam:)


Do you have a link to the property?

A month ago I would have said that sounds too expensive, but after the last couple weeks, I'm not so sure anymore?

955m2 sounds like a fantastic size block. How much is the frontage, Playford Council required min of 20m to have 2 indivdual houses, but you can have a duplex for 18m. Hard to say without actually seeing block on Google, but assuming it's not an awkward shaped block, you may even be able to put a group of units on it instead which would be an even better return for you.

My thinking would be, work out how many dwellings you can put on the land, whether it be units/house/duplexes etc. then work back the cost of the land per dwelling. So if you could put say 5 or 6 units on it, then you would only be paying about $35k-$40k for the land of each dwelling (+ all the costs later on to subdivide etc etc but you get the drift). To me, that sounds reasonable.

If on the other hand the block is only suitable for a duplex or 2 houses, you may be over paying a little, but having said that - I'd still do it.
 
Hi Steve

I have just joined today! I should have known about this website a long time ago...I have just purchased another IP in Queensland but feel it's time to start researching Adelaide. Any tips you can give me on locations? Reading your comments it seems Elizabeth is the way to go?

Thanks
Sam:)

Hi Sam, you'll love SS!

I think you've picked the right time to starting looking into Adelaide.

Whether or not Elizabeth area is the area for you it totally dependent on your personal views and financial situation. I like Playford (Elizabeth suburbs) because it suits me and my investment needs - it may be totally different for you.

If you outline perhaps a bit more on what sort of property you want (eg. Unit/House, old/new etc) and how much $ you want to spend, then it's a bit easier to give you some ideas.

Playford is good if you want to buy cheap houses with a relatively good yield in an area that it growing with new development, industry and infrastructure. Prices range from around $130k - $350k depending on what property you look at. Have a read through this thread and feel free to ask any questions.

Having said all that, I think there are plenty of places in Adelaide that you could buy very good property in - not just Elizabeth. Here are some thoughts, but perhaps if you fill us in a bit more on your personal situation and thoughts we can help more:

- Elizabeth/Davoren Park/Smithfield - Cheap houses for future development or brand new houses still relatively cheap compared to rest of Adelaide.
- Clearview - Older houses 7km from CBD which are good for future development (very easy going council for redevelopment in some pockets).
- Northgate Stage 2 - Last decent sized parcel of greenfields land near (8km) the Adelaide CBD about to be developed into resedntial incl. houses, apartments, warehouse apartments (they are literally cutting out the first streets for the display homes as we speak) - also close to where Yatla jail will be demolished in 5yrs for development.
- Nairne - In the Adelaide Hills next to Mt Barker - a cheaper alternative with both new housing estates, or older houses with dev. potential for around $230k.
- Port Adelaide - suburbs that Peter K mentions in his Top10 list look quite good (Exeter/Glanville/Ethelton/Largs North) as well as Birkenhead, Peterhead etc. Very close to the developing Newport Quays marina development which has commenced.
- Woodville suburbs - Still relatively cheap for their proximity to the CBD, although generally still a lower socio economic class.
- Aldinga Beach - Beachside town just past the southern most suburbs of Adelaide with new estates at which you could purchase/build a new place for around $260k
- CBD apartments are plentiful if that's your inclination (personally I would'nt touch them and think they're too pricey for me).
- Roxby Downs - In the middle of SA next to BHP's Olympic Dam mine. Big expansion plans happening there, and a drastic shortage of housing stock for tennants. Nothing much for less than around $350k now.

As you can see, there are a lot of ways you can go....
 
Bring On Adelaide

Thanks for your thoughts Steve. As mentioned I only just last Friday purchased a property in QLD - Redcliffe. My partner and I are really looking to build on our property portfolio - we both still have allot to learn and it's only early days. I know nothing about Adelaide at this stage so I have allot of ground work to do.

I would definitely like to look at a house (preferrably not brand new) 3 plus bedrooms for a IP. Something within 7 km's from the CBD but perhaps near to the water? Not sure of the rental returns as yet but definitely something I am not having to top up too much. Probably look at around $300k or less but open for the right place.

Any advice greatly appreciated guys.

Thanks Sam
 
Thanks for your thoughts Steve. As mentioned I only just last Friday purchased a property in QLD - Redcliffe. My partner and I are really looking to build on our property portfolio - we both still have allot to learn and it's only early days. I know nothing about Adelaide at this stage so I have allot of ground work to do.

I would definitely like to look at a house (preferrably not brand new) 3 plus bedrooms for a IP. Something within 7 km's from the CBD but perhaps near to the water? Not sure of the rental returns as yet but definitely something I am not having to top up too much. Probably look at around $300k or less but open for the right place.

Any advice greatly appreciated guys.

Thanks Sam

Had someone else ask me that same question a few weeks back. For $300k and under and within 7km of CBD, for a stand alone house, the only place left to look is around Clearview area. (please someone correct me if I'm wrong as I'd love it! ;) )
 
Hi Steve

What are your thoughts on Port Lincoln? Is the Clearview area a good location?

Thanks Steve

Sam

Depends who you talk to I guess, I think Clearview is quite nice and am considering buying a house there next year to build a future PPOR one day. It's 7km from CBD (direct line) up North East Rd & Hampstead Rd.

At the moment there is a lot of regentrification happening in Clearview and neighbouring suburbs (Enfield, Greenacres, Northfield etc.) with the older places making way for 2 new ones etc. Places with development potential are definitely fast approaching or exceeding the $300k mark. Houses without development potential (ie. not enough to split into 2) you can get for $260k+, although they're getting harder to find too.

Port Lincoln I can't really tell you much as I haven't looked into it. I have heard there is a lot of development happening there though, including I believe a new hotel and shopping precinct. But I'm not the person to answer this one for you.
 
Adelaide Port

Hi guys

Can anyone recommend a respectable real estate agent in Port Adelaide?

Steve I have started researching Port Adelaide and the suburbs you suggested so thanks for the advise.

THANKS
Sam:)
 
Little update for those following. Just talked to my PM as I've been looking for a property under $190k with 700m2 or more.

Every house listed is under contract (including the couple that don't say it). My PM said they are getting multiple offers for every property that comes up. One example of a semi in one of the Eliz's that listed last week at $175k had 6 offers on it, the highest around $183k.

The agent that sold me my last IP said he has no stock left under $200k at the moment except a mortgagee sale that needs some work and is going to auction (although he works for a smaller agency).

Bodes well for people holding, but unfortuantely I am trying to find something for someone under $190k and it's getting quite difficult :eek: the search continues....
 
elizabeth etc

hi there - new to the forum so pls treat me gently -

i've just read most of this thread & i just don't get the current fascination with elizabeth - whilst i appreciate that rental returns there are pretty good at the moment, i'd suggest that 2/3 years ago the place was undervalued as an ugly duckling - 3 bedders for $70k/$80k & the downside from there was pretty limited - however in the property investment game the long run is really about location & for me elizabeth has nothing - not close to the coast, not close to the cbd, no views, dodgy public transport, it's as hot as hades in the summer, dry & dusty & cold in the winter - with prices now pushing $200k i can't see that there's money to be made there in terms of capital appreciation - it is still a low socio area & the opening up of new development land close by can only depress values by increasing housing supply.

I appreciate the signs for adelaide look promising, (& the property media can't help but talk it up) but it doesn't follow that just because WA had a resources led boom & SA also has alot of resources activity that the same will happen in adelaide. Mining activities can still be run from the eastern states, there is no real need for a huge presence in adelade the same way as it is necessary in perth (due to the distances involved) - also having lived recently in both perth & adelaide i don't think the other fundamentals are so strong in adelaide - the beaches are nowhere near as good, there aren't heaps of cashed up oldies in the same way that perth retirees are willing to blow $1m on a busselton pad - most of the oldies in adelaide are old brits who came over in the 50s, and the state government (despite being terribly daring by adelaide standards in extending the tram line 2km) are nowhere near as adventurous as in WA - re-development plans are all small town, compared to the mandurah railway & sinking the central railway station

i do think there will be capital growth in adelaide, if only because it is the cheapest real estate market in australia. However it will take longer & won't be as spectacular as in WA -

so now that i've panned the popular concensus, i ought to stand up & be counted .... there will be niche markets - the student rental is & will continue to be huge in adelaide - the suburbs around port adelaide should benefit from the regeneration of the port area - i'd look around plympton, glandore, edwardstown, marion, st mary's, on the coast at brighton & southern beaches, i'd consider henley beach to still be cheap & well located - places like normansville have to be good buying - a great beach, holiday rental, retirement teritory & good property less than $300k -
Closer to the mining territory - port augusta, port pirie & whyalla will all make money, a fair bit of the capital appreciation has already happened - i'd go for a lifestyle spot (the same as happened to port denison & dongara) - something like ceduna & streaky bay -

anyway, that's my 2 pennies! - having said all that i bought 2 units in Werribee Vic a few months ago & reckon that they've gone up a good 20% in that time!
 
hi there - new to the forum so pls treat me gently -

i've just read most of this thread & i just don't get the current fascination with elizabeth - whilst i appreciate that rental returns there are pretty good at the moment, i'd suggest that 2/3 years ago the place was undervalued as an ugly duckling - 3 bedders for $70k/$80k & the downside from there was pretty limited Agreed a few years back Semi's were going for $25k

- however in the property investment game the long run is really about location & for me elizabeth has nothing - not close to the coast, not close to the cbd, no views, dodgy public transport, it's as hot as hades in the summer, dry & dusty & cold in the winter They have train lines going straight into town, but more importantly, people that work in the area (technology, defence etc) don't mind living in the new houses that are being built. As far as weather, well I feel pretty hot and I'm only 8km out from the CBD ;)

- with prices now pushing $200k i can't see that there's money to be made there in terms of capital appreciation. I believe there is less capital appreciation to be made now, definitely. However, you have to look at supply and demand, as house prices over the rest of Adelaide continue to rise, Elizabeth et al will get the flow on effect as well as people with lower budgets who are left with less options. You also have to look at the land value - if you're talking about an old house on a block of land that is 800m2 that is selling for $190k (or now pushing through $200k soon) - upon development, that is 2 blocks of 400m2 that if you go into the new estates will be selling for well over $100k now and increasing quite rapidly (see Lakeside @ Andrews Farm, Playford Waters etc.). It is less of a bargain now when the prices get pushed towards and through $200k, but these same blocks were selling for $140k only a few months ago when the new releases were still over $100k - hence I believe some of this is a natural market correction, the same that happens in any suburb when old houses become increasingly valuable/economical purely for the land component.

- it is still a low socio area & the opening up of new development land close by can only depress values by increasing housing supply. Totally agree, it is still a lower socio economic area, although not as much in the newer estates. I'd have to disagree about the new estates depressing prices - Andrews Farm and Blakeview hardly existed 5-10yrs ago, now look how huge they are. Prices have increased dramatically in the surrounding suburbs as these developments were being built out. Now the development is starting in Munno Parra West - and only just the beginning, the paddock (if you could call it that) between the old MP and MPWest is going to be developed as well as well as another big lot at Blakeview. Also, as the current Govt. zoning stands, they are reaching the urban boundary limit being stopped at the North by the Gawler belt (& that councils determination to keep their green belt), the East by the hills, and the West by the desire of the govt. to keep the agricultural land for local industry (although this could change one day hopefully).

I appreciate the signs for adelaide look promising, (& the property media can't help but talk it up) but it doesn't follow that just because WA had a resources led boom & SA also has alot of resources activity that the same will happen in adelaide. Mining activities can still be run from the eastern states, there is no real need for a huge presence in adelade the same way as it is necessary in perth (due to the distances involved) Totally agree, I don't believe the boom will be as big as the WA boom of recent years.

- also having lived recently in both perth & adelaide i don't think the other fundamentals are so strong in adelaide - the beaches are nowhere near as good, there aren't heaps of cashed up oldies in the same way that perth retirees are willing to blow $1m on a busselton pad - most of the oldies in adelaide are old brits who came over in the 50s, and the state government (despite being terribly daring by adelaide standards in extending the tram line 2km) Don't get me started! are nowhere near as adventurous as in WA - re-development plans are all small town, compared to the mandurah railway & sinking the central railway station I don't know about WA so can't comment, but I agree, our infrastructure projects are minimal/small projects, and in my opinion whilst good, are inadequate.

i do think there will be capital growth in adelaide, if only because it is the cheapest real estate market in australia. However it will take longer & won't be as spectacular as in WA - Agree with that too, although only time will tell, and I'm sure some areas will do very well too.

so now that i've panned the popular concensus, i ought to stand up & be counted .... there will be niche markets - the student rental is & will continue to be huge in adelaide - the suburbs around port adelaide should benefit from the regeneration of the port area I would point out that some people (myself included) would have had the same thoughts 10yrs ago about the Port area as you currently have about the Elizabeth area.

- i'd look around plympton, glandore, edwardstown, marion agree, st mary's, on the coast at brighton & southern beaches definitely, i'd consider henley beach to still be cheap & well located agree - places like normansville have to be good buying - a great beach, holiday rental, retirement teritory & good property less than $300k - I believe you're right, as Elizabeth area has become more expensive, it does make other areas more attractive, but not every property has to be near the CBD and water to go up in value. Look at it another way, if over the next 10yrs Adelaide's other suburbs keep rising, and break through an average in the mid $400k's - I'd say it's a pretty good assumption that the Eliz's will go up as well and not just stick at the $200k level. There is no border where at Salisbury the median will be $330k, then 2 streets over at Elizabeth, the median will be stuck on $200k. Also realise that this is discussion on Elizabeth et all, so it will be focussing on those areas and their features. This is not to say this is the only place in Adelaide I would invest - it just happens to be where I've been investing at the moment as I believed prices were undervalued. I've recently started looking elsewhere as Eliz's become increasingly more expensive

Closer to the mining territory - port augusta, port pirie & whyalla will all make money, a fair bit of the capital appreciation has already happened - i'd go for a lifestyle spot (the same as happened to port denison & dongara) - something like ceduna & streaky bay - Totally agree, I like Pt Pirie (despite the smelter and the stigma that has brought over the years), and I think Ceduna could be a fantastic buy in the new Ceduna Keys development depending on the prices.

anyway, that's my 2 pennies! - having said all that i bought 2 units in Werribee Vic a few months ago & reckon that they've gone up a good 20% in that time! Beautiful feeling isn't it! My last IP I bought in June has gone up 30% since then (my own valuation)

Hi STB, welcome to SS! You make some very good points about Adelaide. I would clarify that I do expect mining to give us a boom here, but for my own part - I have said I expect it to be like/similar to Perth boom to give people an idea of what I mean, but I have said I don't think it would be as big.

You've written a really long post, so to make it easier for myelf instead of scrolling, I've added my thoughts into your post above.

As you can probably tell since you've read this thread through from the first post - I love Adelaide and believe the REA is in for big gains, but I welcome any discussion and opinion on it, so keep it coming, there's not enough talk of Adelaide on SS :)
 
I appreciate the signs for adelaide look promising, (& the property media can't help but talk it up) but it doesn't follow that just because WA had a resources led boom & SA also has alot of resources activity that the same will happen in adelaide. Mining activities can still be run from the eastern states, there is no real need for a huge presence in adelade the same way as it is necessary in perth (due to the distances involved) Totally agree, I don't believe the boom will be as big as the WA boom of recent years.

On this point I would also add - they can be run from interstate, but a lot of the miners and their families will be based in Adelaide as they do the fly in fly out gig. These families continue to spend in Adelaide/SA and stimulate our economy and all the flow on effects that miners $$ have where ever they're based.
 
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