Investment Property in Adelaide CBD - 6% Rental Return

[kamchatsky]

For 550K, I would look for small houses at the Adelaide suburbs that have catchment of good public schools (not in order):

- Adelaide High
- Marrayatville High
- Unley High
- Urrbrae Agricultural High
- Glenunga High
- Norwood Morialta High

http://bettereducation.com.au/school/secondary/sa/adelaide_top_government_secondary_schools.aspx

For example, a house at Torrens Park for $455,000.00

http://www.realestate.com.au/property-house-sa-torrens+park-115695683

it is in catchment of Unley High School:

http://www.decd.sa.gov.au/locs/pages/default/33820/?reFlag=1

Another example, a house at Keswick for 475-495K:

http://www.realestate.com.au/property-house-sa-keswick-115643103

That should be zoned within Adelaide High School.

http://www.decd.sa.gov.au/locs/files/links/Adelaide_High_School_Zone.pdf

Seriously, Adelaide is very easy to get around so there is no need to stay in the city ..... And I lived in Adelaide for 11 years. Everytime I come back to Adelaide from Sydney I just found it so easy to travel around.

But in your case, if you want Adelaide High then the one at Keswick would be good enough.

 

[Bentley]

By a factor of infinity

Wow! Guess I've been looking at the wrong places!

Could I know what are some of the major plus points the Torrens title town houses have over the apartments in the CBD? Thanks.

 

[D.T.]

1) already built
2) proven product
3) people (whether they be renters or buyers) actually want to live in them.
4) probably cheaper
5) probably better yield if renting it out
6) probably less of a box to be trapped in if owner occupying
7) can add value (and increase equity or yield) to it by improving floor coverings, kitchen, bathroom...

 

[Bentley]

For 550K, I would look for small houses at the Adelaide suburbs that have catchment of good public schools (not in order):

- Adelaide High
- Marrayatville High
- Unley High
- Urrbrae Agricultural High
- Glenunga High
- Norwood Morialta High

http://bettereducation.com.au/school/secondary/sa/adelaide_top_government_secondary_schools.aspx

For example, a house at Torrens Park for $455,000.00

http://www.realestate.com.au/property-house-sa-torrens+park-115695683

it is in catchment of Unley High School:

http://www.decd.sa.gov.au/locs/pages/default/33820/?reFlag=1

Another example, a house at Keswick for 475-495K:

http://www.realestate.com.au/property-house-sa-keswick-115643103

That should be zoned within Adelaide High School.

http://www.decd.sa.gov.au/locs/files/links/Adelaide_High_School_Zone.pdf

Seriously, Adelaide is very easy to get around so there is no need to stay in the city ..... And I lived in Adelaide for 11 years. Everytime I come back to Adelaide from Sydney I just found it so easy to travel around.

But in your case, if you want Adelaide High then the one at Keswick would be good enough.

Thanks Edison. Yup, Adelaide is pretty easy to get around. Reason why I'm leaning towards a property in the CBD is with all the ongoing new developments to rejuvenate the city ( e.g the new RAH, Adelaide Oval redevelopment, the new Women & Children Hospital, UniSA expansion, Riverfront Precinct redevelopment etc) and with numerous high rise apartments starting to be built, land is starting to become scarce inside the CBD.

Compared to other capital cities like Sydney, Melbourne or even Perth its still possible to buy a reasonable sized town house or 2 bedroom apartment in Adelaide CBD for $400K. Not sure how long those prices will remain.

 

[Deltaberry]

Major plus? Not paying $10k body corporate and reducing your true yield to 4% would be a good start.

 

[singingtheblues]

Otp

OTP sounds good because it's easy - however you're paying a huge premium to the developer for the convenience - dont be seduced bu the word 'guarantee' - 2 years is not a long time & the body corp & other costs will eat the rent alive - what happens when more developers stick up more similar units & the market gets swamped? - i'd go for the freehold house everytime simply for the control of what you can do with it & they arent making any new ones .. the value is in the land - i'd do a bit more research & find better value in parkside, unley, wayville, goodwood, black forest, mile end, richmond, etc

 

[Corey Batt]

Jump on Google and punch in 'Somersoft', 'slumlord', 'CJay'!



pinkboy

That definitely made me laugh.

Absolutely agree with the sentiments expressed in the thread. For that budget you can secure a quality property within 10 minutes of the CBD on Torrens title, higher effective yield and more options (development potential, renovation potential etc.

If you can considering directly outside of the CBD, there are some fantastic terrace style homes in that price range - just a thought.

http://www.realestate.com.au/property-house-sa-norwood-115849131

Not saying this is necessarily a good investment, but an example of the kind of stock which can be bought in premium suburbs for similar/less money.

 

[perthguy]

I agree with CJ. I lived in Adeliade for a while in St Peters and just walked most places. It's a nice walk into town through Botanic Park. Personally I would steer clear of "off the plan" apartments because there seems to be a lot of development and then prices drop or a lot for rent which pushes rental prices down. Personally, I would buy torrens title close to the City. Places like Norwood near the Parade should do well in the long term. I like the option of being able to re-develop later down the track.

 

[Bentley]

Thanks Perthguy and Cjay. All the replies have given me a different perspective which I hadn't thought about. That's why SS is such a great place.

Time for me to look at more properties!