munno parra west s.a.

[tori]

hello i was wondering if any one has any thoughts on munno parra west i am looking at a house and land package there. i know there are many people on here who have ips in the area i have done some reasearch on the area myself but as i value the opinions of the people on this site i would really appreciate any information you may have.

thanks tori

 

[steveadl]

Tori,

I like the area. Came close to buying one for someone there a couple weeks ago but decided against it last minute becuase the indivdual property didn't suit.

The suburb has already risen a fair bit, but I believe it will do well in the coming years. It doesn't have as much of the stigma as the suburbs a bit further south do (ie. DP, SP etc). You do however already pay a premium for that with the new H&L packages as opposed to say DP and Smithfield - so do be aware of that.

However it is probably fair though. As the area was all greenfields land before hand, there are no run down houses right next door which detract somewhat from the area.

As you would have noticed, there is a lot of development going on in the area. At the moment all still in the 'western paddock' as I call it, as I believe the 'eastern paddock' where the golf course is located, is earmarked for the coming North Lakes development by Delfin (although it's annoyingly hard to find info. on this online) - the same developers as Mawson Lakes. There have also been muli million dollar expansions in the Munno Para and Elizabeth shopping centres in recent years.

Personally I would have no hesitation in buying in MPW. I would however give you a couple of pointers. If it fits with your budget - try and go for 2bth, and 2 living areas. Also, an absolute MUST is a double garage/carport (this is the reason I cancelled the deal last month). The majority of the people in MPW are working couples, many with the defence base (and this will only increase in the coming years as more defence personel move down), and both have nice new cars that they want locked up at night.

You need to make your house attractive compared to the other ones being built in the area, so you have first pick of the best tennants (hence 2gge, living areas, pergola perhaps etc.).

 

[Property Mogul]

Hi Tori, I am in the process of building in MPW but have taken a different approach to Steveadl. I bought the cheapest block I could find and have negotiated directly with a builder. The finished product will be a 3 bed, 2 way bathroom with a/c, lug, landscaping, pantry and a few other bits and pieces (extra power points, exhaust fans) which aren't included the basic prices. Once finished it'll have cost approx 185k and rental estimates are 210-230 p/w. One of the reasons I've gone the budget option is that I think most of the people will be lower middle income earners. Most defence personnel will not choose to live in MPW (trust me, I am one) instead choosing the Golden Grove area or Mawson Lakes. Also the area borders some less desirable areas so I've hedged my bets somewhat by trying to keep costs (and hence the down side) down.

Having said all that, I've also valued Steveadl's advice in the past.

I hope that helps.

 

[steveadl]

You make a some very good points Property Mogul.

Just re-read my post. To clarify, I think what PM is doing by way of the budget option is good too, and I may have given the wrong impression. If I was building one myself, I would'nt be spending a fortune. I'd go the cheap route too, but having said that you still need to make it appealing to tennants - simply because they will have a fair few to chose from. My new IP's in the area (SP & DP) only have 1 living area, and 1bth as well. However I do chuck on pergola's after I buy, and I've only bought ones with 2 garages/carports, and really do believe that's a really appealing factor to renters. You also in general don't need to buy a big block either as (with the exception of couples with young kids) most people in the area don't want the hassle of a garden and large areas of lawn in a rental - especially with the water restrictions now in place.

As a general side note, you do get a higher class of tennants in the newer IP's, and therefore less hassles.

PM, when is yours due for completion? Sounds like you did some great negotiating!

 

[Property Mogul]

Thanks for the comments Steve, should be complete in 6 months or so. There is a similiar one to mine on a slightly smaller block on re.com.au for 245k!

 

[steveadl]

Thanks for the comments Steve, should be complete in 6 months or so. There is a similiar one to mine on a slightly smaller block on re.com.au for 245k!

Well done mate! Nothing like instant equity!

Hard to say without seeing the house specs, but I'd also say you'd be fairly safe getting rent of $220-240pw, but it's better to err on the side of caution as you are. I'm getting $225pw in SP, and about to increase DP to $215pw (could probably get $220-25pw, but they're good tennants that have been there for 2yrs now). Obviously it depends on demand and supply at the time, but I would expect a slight premium in MPW.

 

[Property Mogul]

Thanks Steve..trying following the adage that you make $ when you buy not when you sell.

It's good to hear your positive comments about MPW as I can't help feeling a little unsure about the area.

 

[tori]

munno para west

thanks to steveadl and property mogul great advice from you both i know steveadl has a lot of experience in this area. i am taking your advice about two living areas but unfortunatly a lot of the blocks are too small to fit a double carport if we did we would loose our second living area . which do you think is better to have a lounge as well as a family room or give up the lounge for a double carport.?

 

[steveadl]

thanks to steveadl and property mogul great advice from you both i know steveadl has a lot of experience in this area. i am taking your advice about two living areas but unfortunatly a lot of the blocks are too small to fit a double carport if we did we would loose our second living area . which do you think is better to have a lounge as well as a family room or give up the lounge for a double carport.?

Bugger, that's a tough choice!

You could argue either way quite validly. Personally, I'd get the 2nd carport, but make sure your living area at the back is perhaps somewhat bigger. A lot of them are quite large, especially when they have an adjoining meals area too. This has worked for my IP's/tennants.

If you went with the 2nd living area, there's a couple of things you could also do. Ensure you either pave, or continue on with the concrete from the carport through so that the tennants can drive through and get a 2nd car behind the roller door - it's a bit of a pain, but the next best thing. You could also put a front fence and gate on the IP, so at least the tennants have the option of locking their 2nd car up to some extent. Also, even though you only have 1 carport, extend the concrete/paving on the driveway towards the house so the tennants can park 2 cars side by side so they don't have to constantly change - convenient and more appealing.

 

[tori]

munno para west

Thanks steveadl great advice i like the idea of extending the paving so they can at least park the cars side by side in the driveway, but i think if i can i will give up the lounge and add a 2nd carport i think it will add more value to the house. thanks for the ideas and advice.

tori

 

[steveadl]

Thanks steveadl great advice i like the idea of extending the paving so they can at least park the cars side by side in the driveway, but i think if i can i will give up the lounge and add a 2nd carport i think it will add more value to the house. thanks for the ideas and advice.

tori

Not a problem Tori. Remember that just an opinion though. Perhaps if your unsure you may also want to call a few PM's around the area to see what they prefer if they have a choice. I know my PM prefers the 2 cars.

 

[Darren1968]

Adelaide

Great reading. I love posts covering Adelaide.

I wish I could have built my IP for that cheap. That's a good price.

I read with interest about setting up a second parking area as there are encumbrances on the land where I bought (Playford Waters) that the developer has put in place that says you can only park vehicles on the driveway of the property. Bit cheeky of them I think.
No other vehicles are allowed to be parked in front of the property.

I bought a big corner block so there's plenty of room behind the fence. The home will have a double garage and still room for double gates to the side so it wont be an issue.

I chose a 3 bed (with ensuite), double garage and 2 living area home for the same reasons as mentioned in the posts above so I'm glad to hear that other people think the same. That's the minimum I would want to live in myself.

I'm a defense contractor and I'm hoping that others will want to live in the area too. A lot of people I talk to are "over" Mawson Lakes these days. Too expensive, blocks too small.

Steve - you mentioned you build pergolas on your IP. Can you pass on any tips on builers and prices as I wish to do the same thing too.

 

[Rogo202]

double carport

Hi all.

The house I have in construction at the moment I went through exactly the same decision process. Double garage or 2 living areas?, not enough room for both. I went with double garage and I'm glad I did because the house I live in has only 1 off street parking and it's a pain in the rear when both you and your partner have a car.
I'm assuming people who rent would feel the same way.

 

[steveadl]

Great reading. I love posts covering Adelaide.

I wish I could have built my IP for that cheap. That's a good price.

I read with interest about setting up a second parking area as there are encumbrances on the land where I bought (Playford Waters) that the developer has put in place that says you can only park vehicles on the driveway of the property. Bit cheeky of them I think.
No other vehicles are allowed to be parked in front of the property.

I bought a big corner block so there's plenty of room behind the fence. The home will have a double garage and still room for double gates to the side so it wont be an issue.

I chose a 3 bed (with ensuite), double garage and 2 living area home for the same reasons as mentioned in the posts above so I'm glad to hear that other people think the same. That's the minimum I would want to live in myself.

I'm a defense contractor and I'm hoping that others will want to live in the area too. A lot of people I talk to are "over" Mawson Lakes these days. Too expensive, blocks too small.

Steve - you mentioned you build pergolas on your IP. Can you pass on any tips on builers and prices as I wish to do the same thing too.

Do you mean you can't extend the driveway sideways in PW??! That's crazy!

Sounds like you're building a nice place Darren - frontage must be fairly big to get double garage and double gate! My parents have just signed a contract in PW on Navigator Parade (from memory). They also got a double garage, and said in the future they won't even consider houses with 1 garage/carport. They've sold around 4 new houses in the last 4yrs, and their experience is it's much harder to sell the ones with only 1 garage/carport. Interested buyers always comment on how they love the houses (they're fairly large family homes) but don't like the single garage. 2 were double, 2 were single - the singles stayed on the market longer.

When does your construction start?

I've got to be honest, Mawson Lakes surprises me a bit - they're all such monster houses, but no land like you said. Too expensive for my liking, definitely not for an IP anyway - except perhaps unless you're looking for executive rentals?

PS I'll PM you the pergola/veranda guy details.

 

[Darren1968]

Adelaide

My block has a 20M frontage. It's a 600sqm corner block. The house I am building is actually a courtyard home set on a traditional block.

Here's the house (mine will be mirror reversed). The master bedroom on my house will actually be extended by half a metre (forward) as the council requirement is that the garage must have a minimum setback from the front wall of the house. By extending the master bedroom wall forward that requirement is satisfied. (extra $900)

http://www.hickinbotham.com.au/Courtyard/kingsborough.htm

The council wants the living areas to face north so I am positioning the house on the southern side of the block (which is the side road). The front of the house/block faces West.

With 2 metres from the south boundary to the house and with the house only being 11.5 metres wide I still have 6.6 metres between the northern boundary and the garage. Perfect for a set of double gates.

This shape house on that block will allow for a great lawned area for kids to play or BBQ's etc on the northern side of the house with direct access from the living areas. That's also where the pergola will be. (thanks for the pergola info Steve - appreciated)

The double gates on the same side also allow drive through acces for vehicles if required.

I actually intend to create a gravel double parking area directly behind the gates.

I'm trying to make the place as desirable as I can to a tenant. ie decent yard for kids and entertaining, secure parking for a boat or caravan if desired.

That's also why I chose the double garage (with direct interior access), ensuite and two living areas.

One of the encumbrances the developer has put on the land is to basically prevent people parking cars on the lawns and other areas out the front of the house and making the area look messy etc.
They are trying to keep things to a certain standard so they state that the only vehicles allowed to be parked forward of the house are those on the driveway.

Build start date is not finalised yet. Land settles in 3 weeks. It would be very unlikely that building would start before Christmas.

 

[steveadl]

That's great Darren, think you've got some really good ideas to make the house attractive to potential tennants.

My parents actually had the exact same house design in Walkley Heights, so I know it very well. A nice choice!

Those encumberances can be a pain (I had a couple to deal with in Northgate), but in the bigger scheme of things, it doesn't mean much - especially since you won't be living there, and it's good if it keeps the area to a higher standard.

Agree with you in regards to the construction before Xmas. What sort of build time frame are you looking at with Hickenbotham once they do commence?

 

[Darren1968]

build time

Their estimate is 11 months but they are aiming to reduce it (they probably tell everyone that). Demand is very high in Adelaide at the moment.

That 11 months is from the date the contract is signed so take off 2 months which covers the plans being drawn up, footings reports and council approval etc.
There is also a one month allowance for Christmas so this brings construction time to 8 months. That is still a hell of a long time but hey that's 8 months capital growth. (and 8 months interest payments!!!!).
Maybe when it's finished I can revalue and repeat the exercise.

Hopefully with taking that much time they will do a good job.

 

[steveadl]

Their estimate is 11 months but they are aiming to reduce it (they probably tell everyone that). Demand is very high in Adelaide at the moment.

That 11 months is from the date the contract is signed so take off 2 months which covers the plans being drawn up, footings reports and council approval etc.
There is also a one month allowance for Christmas so this brings construction time to 8 months. That is still a hell of a long time but hey that's 8 months capital growth. (and 8 months interest payments!!!!).
Maybe when it's finished I can revalue and repeat the exercise.

Hopefully with taking that much time they will do a good job.

That's the idea

Time frame sounds reasoable, and they're probably giving you a worst case scenario so you can't get upset with them if it takes longer than the 8 months or so they expect.

Just remember the crime on building sites at the moment when you go ahead. Although someone (maybe it was you?!) said that Playford Waters hasn't been that bad. Have to get my dad to lend you his German Shepherd!

 

[Darren1968]

crime on building sites

It was me who mentioned that Playford Waters wasn't copping quite as much crime as some other areas but no doubt it does happen.

I know that Playford Mews was really copping a hard time when it was first established. It's not that far down the road from Playford Waters but the fact that the pedestrian thoroughfare from the train station is straight through there meant that the young hoodlums walked through there regularly and temptation obviously got too much for them (especially late at night).

As my house will be the last built in the third stage of Playford Waters it will be surrounded by completed and inhabited homes which will hopefully that will offer a little but of protection. No guarantees though.


Is anyone else here building out north?

 

[weg]

Hi Darren,

I've bought into the third stage at Playford Waters also so must be very close to you. I'm at the top of Admiralty overlooking the lake. Expecting to have stab poured this week. In regards to having a single garage I took notice that there wasn't a glut of 300 squ properties so figured there would be a reasonable market for the retiree or single working person or couple with possibly one vehicle especially as the train station is a 5-7 min walk away. I'd love this kind of tenant - less people to create wear and tear. I've been very diligent with costing - building the Thorngate 111 with delux features - and have calculated the whole lot inc. veranda (husband building), landscaping (husband a landscaper), r/w tank, spit sysem a/c, timberlook lino and window furnishing to come in at 200K. I think the investment potention has been great already. Each stage has got more expensive and those that have got in early obviously will do better in the short term although I plan to hold. They say buy in the early stage of a new development and you would have made money at completion of the stages. This certainly has applied here as I value this home at 40 to 45K more and it hasn't even been built.