Elizabeth, Salisbury and Seaford precinct

[ssimpson2003]

If you google 'Onkaparinga City Development Plan' you'll find a comprehensive document detailing the planned development for this area. There are also many other documents you can find that provide excellent reading. Over the next 20 years the population in the Onkaparinga area is expected to grow from 160,000 to 200,000.

Adelaide advocates a strategy of infill instead of urban sprawl and has been extremely proactive in rezoning areas to accommodate this strategy. There are a number of huge infrastructure drivers such as the southern expressway duplication and the extension of the railway to Seaford that will bring the area closer to the city.

There is an interesting article in the May edition of the API that gives an excellent account of what's going on down in Adelaide.

I visited the area about 5 weeks ago to conduct some DD. I was so impressed I purchased a property close to the beach (Western side of Commercial Rd). I settled yesterday ☺. It’s a great time to be buying property at the moment and I was able to secure a deal below what I think is the market value for instant gains. As already mentioned on this thread this area offers good-sized blocks with the added bonus of renovation either now or at a later stage to increase value and yield to the property.

Recently Adelaide has shown some of the strongest figures in relation to population growth in the country and with huge investment into infrastructure and proactive city councils I see great long term potential.

JT

Thanks JT7, v Interesting. I wonder if that figure of 9000 extra dwellings for the southern areas came from the population growth projections or the other way round. Thats the critical question as far as i'm concerned.

Both north and south seem to have a lot of upside in terms of Infra and jobs. The North is self sufficient in terms of employment, and the 45-60min commute wont be an issue whatsoever in a few years for those in the southern suburbs, just as is the case in Melb and Syd.

Without having done a detailed analysis, it seems like a question of CF (north) vs CG (south). I guess it all depends on your strategy. If you choose the right property in either area i think you'll be a winner.

 

[JT7]

Thanks JT7, v Interesting. I wonder if that figure of 9000 extra dwellings for the southern areas came from the population growth projections or the other way round. Thats the critical question as far as i'm concerned.

Both north and south seem to have a lot of upside in terms of Infra and jobs. The North is self sufficient in terms of employment, and the 45-60min commute wont be an issue whatsoever in a few years for those in the southern suburbs, just as is the case in Melb and Syd.

Without having done a detailed analysis, it seems like a question of CF (north) vs CG (south). I guess it all depends on your strategy. If you choose the right property in either area i think you'll be a winner.

Hi ssimpson2003,

I think both North and South offer great potential not only for CG but yield growth as well. My personal view was that the time was right to enter the southern market close to the water before prices rise to high.

I also think you will see gains in yield in the Onkaparinga shire because of these infrastructure drivers’ making the area more accessible to Adelaide corporate type families prepared to pay for the lifestyle benefits of living close to the sea. Already we are seeing properties on the Esplanade being knocked down and replaced with quality stock or renovated and/or sub-divided.

I certainly have the strategy of a long-term hold and I think Seaford will do well however, in saying that, I wanted to buy somewhere in Australia where I thought I'd get the greatest amount of growth over the next 2-3 years to propel me into the next property and I think this was an important strategy for me....time will tell.

Unfortunatly I haven't got a crystal ball but I just stuck to some basic principles: Location; Infrastructure; population growth; Pro-active councils; potential to add value through renovation; buying below market value + some depreciation benefits.

I have also cast an eye north and have not ruled out the possibility of looking to the Elizabeth precincts for my next play.

If you need any info let me know I'm only to happy to pass it on.

JT

 

[henry74]

third direction in SA?

Hi,

Nice to see an Adelaide discussion!

I have a foot in the North (Evanston Park) and the South (Brighton) and have to say both have done well as a % on dollars invested both in terms of capital growth and rental return.

Has anyone here looked in a different direction, i.e. the Adelaide Hills and beyond? I invested in Strathalbyn and found the return and capital growth on $ spent pretty decent. Alot of people in Mt Barker appear to have woken up to fact that they are not living in a tree change suburb anymore - just an increasingly more expensive suburb with increasingly smaller blocks! Have found demand for my rental here to be very strong. 40 min drive to city has not dampened this and many are working in Mt Barker but not wanting to live there anymore..

Anyone gone the tree change route?

 

[IFBB]

I like the look of Elizabeth Park, and some of the Salisbury region. Tidying up nicely, with some really nice streets / parks coming about, and all the infrastructure happening is only going to benefit the area.

Would you tend to go for semi-detached places, or places on their own block / units? Id stay away from the Smithfield area though, just seems way too many house and land packages are going up, and apparently theyre subdividing for more. Definitely would stay away if you were keen on developing in that area.

 

[steveadl]

Id stay away from the Smithfield area though, just seems way too many house and land packages are going up, and apparently theyre subdividing for more. Definitely would stay away if you were keen on developing in that area.

Perhaps I'm misunderstanding you? I'd go the exact opposite way.

If you've got some old houses sitting right next to new developments, these are the first ones I'd buy as the surrounding neighbourhood is developed into a brand new community with associated amenities and buyer demand. Take a drive through Northfield, vast majority of the suburb has now been knocked down and developed, but it started with the properties bordering Northgate and gradually spread increasingly through the whole area. Northfield prices were helped immensely by the Northgate development.

 

[IFBB]

I was talking more about Smithfield.

For example to purchase a block there is around $120K, and then add onto that the cost of building a house etc. You can buy house and land packages for less than doing it yourself.

I just see too many of these going up around Smithfield to want to purchase there. Head onto RE.com and have a look how many are for sale, with more being developed.

Elizabeth etc i think is a different story though as there are those older dwellings which are slowly disappearing, making way for new developments. It doesnt seem to have that massive influx of extra supply there.

 

[eKwatee]

I believe it's too late to buy in Elizabeth, I see this opportunity has now passed. I know Margerat Lomas is spruking Seaford but by the time she is shouting out load on a suburb it's also often too late. I would be looking a little further out North. Nuriootpa has had good growth in the last 12 months when allot of suburbs/regions have been going backwards or even sideways. I believe it still has quite a bit more growth as now the northern expressway is completed & the rejuvenation of the Sturt Highway leading to the back end of Nuriootpa is also nearing completion. My thoughts are the government aren't spending millions of dollars fixing up a road for no reason. This provides basically a non stop route from the port of Adelaide through to Nuriootpa without any stops. I have also read the future plan for the Barossa Region & what the local government want to see is Nuriootpa being the commercial Hub for the region and to leave the surrounding towns of Tanunda, Angaston etc... alone to retain the heritage of the area. This should provide majority of the retail & commercial employment opportunities within Nuriootpa & of course the employees will often initially rent local to their workplace before buying, thus pushing up rent. You can still buy new under $300k. If you also take a look at the growth of commercial development in the last 2 years it is also on the increase. Their is also a Tafe in Nuriootpa, so their is also an opportunity to rent to students. I know the wine industry has taken a hit of late & I believe this is the only negative indicator that would prevent this suburb from outgrowing any other suburb North of Adelaide. I know if I was in a position to buy I wouldn't be giving out this information but as I'm out the market for approx 12-18 months I might as well share.

 

[veebeeseewee]

ponton street

Hi.

Does anyone know the block of units at ponton street, salisbury?

I'm about to put my very first IP into my investment portfolio, not much to start with.

All comments are welcomed!!

Thanks,
VBswee

 

[_Kaos_]

Good work geoffw you're doing a bang up job. Trying to sell pffft. Thought this was called WHERE TO BUY!

 

[quoll]

I love the south western suburbs.

Plenty of tenants, lots of people want to live near the beach. With the infrastructure improving and the commute into Adelaide CBD becoming quicker more people will be able to justify living there.

Plenty of land being made available to developers (big boys) for housing, plus the councils change in zoning and density criteria mainly near rail hubs.

My main advise would be to not buy a normal 3bed house giving you 5% return. Find something a bit more interesting, especially if you want to end up with more than 1 or 2 of them.

And like anywhere there are always markets within markets. Depends if you want to look at macro or micro.

Cheers
Graeme

 

[IFBB]

Hi.

Does anyone know the block of units at ponton street, salisbury?

I'm about to put my very first IP into my investment portfolio, not much to start with.

All comments are welcomed!!

Thanks,
VBswee

I looked into the Ponton St ones a few years back before i got my first. From my dealings with the agent, its one of the rougher streets in Salisbury, and when i was researching, always had a fair few going up in the street.

Personally, id wait it out until Oct/Nov, and then look at some other properties in the surrounding areas. Prices arent going anywhere, and if anywhere, slightly down, so you have time on your side.

 

[Corey Batt]

A bit trashy, driving along there I've seen my share of ferals roaming. Personally I would avoid housing directly near the Parabanks shopping centre.

 

[veebeeseewee]

Thanks IFBB and CJProperty for your comments and advice.

But IFBB if it's you and the property is a 2 br unit there, how much will you think it's worth paying for?

 

[IFBB]

Do you mean its for you to live in?

When i was looking, they were around $145K i believe (could be wrong), and 2 years later when i check a little while ago, they were still around the same mark, and i think one of them was still up!

If youre really keen on getting into the market, and want to get into Ponton St, id throw an offer of 10-15% below asking price, and see what happens.

I dont think you could expect great CG there, but the yields are not too bad.

 

[veebeeseewee]

Do you mean its for you to live in?

When i was looking, they were around $145K i believe (could be wrong), and 2 years later when i check a little while ago, they were still around the same mark, and i think one of them was still up!

If youre really keen on getting into the market, and want to get into Ponton St, id throw an offer of 10-15% below asking price, and see what happens.

I dont think you could expect great CG there, but the yields are not too bad.

Purely for investment just to get into the market.

Initially I asked around 16% below the asking price yesterday -heard nothing, but I then changed my mind to just 2% less today as the agent gave a little pressure on me saying there's an offer put through before I put in my first offer, also after comparing to the second one yesterday. (I know I'm WEAK!) After I gave in the second offer, I realised I still stand a good chance after he told me will see what the vendor say on Monday.... Now I am a little regret, not sure if I can change my mind again. Then that will make me look very silly! What do you think?

I have to agree that it's not great CG but good yield.

 

[IFBB]

Honestly, i would wait it out for 6-12 months and just see what the market does.

If it stays flat, you would have saved more of a deposit (and dont worry, there are plenty going up all the time in Ponton St).

If it drops, you could save yourself 10%, whilst also increasing your savings, which then increases yield.

 

[veebeeseewee]

Honestly, i would wait it out for 6-12 months and just see what the market does.

If it stays flat, you would have saved more of a deposit (and dont worry, there are plenty going up all the time in Ponton St).

If it drops, you could save yourself 10%, whilst also increasing your savings, which then increases yield.

Thanks, IFBB. I'll see how it goes tomorrow...

 

[JT7]

I see the Federal Government announced confirmation of the $291.2m required for the Noarlunga to Seaford Rail Extension in this recent budget.

Although funding for the extention was announced back in May 2009, it's still reassuring to me to see it slated in yesterdays budget!

Good times ahead for Seaford I think.

Interesting times.

JT

 

[norwoodman]

I see the Federal Government announced confirmation of the $291.2m required for the Noarlunga to Seaford Rail Extension in this recent budget.

Although funding for the extention was announced back in May 2009, it's still reassuring to me to see it slated in yesterdays budget!

Good times ahead for Seaford I think.

Interesting times.

JT

It's basically just a re-announcement, the new rail line is already well into construction! On track (pardon the pun) for opening in 2013.

 

[Milanista]

I settle on my 4th IP this week - in Salisbury East SA. Anywhere in that suburb was pretty good - just stay clear of Main North Rd and Bridge Rd (large traffic volume).

Hi, What's in demand in Salisbury EAST, houses or units? What's the yield? Close to positively geared?