Murray Bridge..Forget the stigma!!

Hi jim,

thanks for the reply. i plan to build a turn-key package along Swanport Road near unity school is. as i am new to this, i am not sure if i am getting the right deal at 290k ready to rent out.

159sqm floor area
460sqm land area
community title
2700 ceiling high
brick veneer
35deg roof pitch
landscaped, with 8thou rwt, will shed at the rear lawn
tiled to living, carpet to beds
11 dwellings and 10 unit apartment inside the new develepment

As i could see median prices are way below to that mark.

I'll be meeting with the developer tomorrow. And i am glad to have found this forum.

thanks again Jim

regards,
ondo
 
Ondo I personally couldnt think of a worse decision do buy land and build brand new from developer in that area unless it's for PPOR.

You can buy very reasonable homes on huge blocks (even corners) for less then that.

What growth do you see by doin your original plan?
 
Hi Brad,

Sorry what do you exactly mean by that? and what does PPOR stands for?

I just want to start investing into property and this developer offered me those properties of his.

Explained that new built homes will give you more capital growth long term compared to established ones. And for that particular range of property would give you a rental of 280/wk rent which is 5% rental yield.

I am weighing this out whether to buy off the plan or to buy an establish ones in the area.

Thanks again.
 
Remember the developers interests is in selling his product, not necessarily the best investment option for yourself.

Murray Bridge has a glut of rentals with new builds renting for relatively cheap prices. Yields are lower than a fair few suburbs of metro Adelaide.

I'd personally sooner be buying in areas of higher long term CG potential through demand and without the flood of stock.
 
I am weighing this out whether to buy off the plan or to buy an establish ones in the area.

By all means educate yourself the way you are doing it,exploring different investment options,just keep your cheque book in your pocket.Personally,i would buy existing housing.As a example,properties bought for $170 ish K still demand @250pw.
 
The BEST yields i get are in Murray Bridge,compared to Mount Barker,Christie Downs,Naracoorte and Bellevue Heights & Strathalbyn. :eek:.

But your Murray Bridge investments aren't 290k turnkey new builds. ;)

I'd hazzard a guess that competing against Unity housing rents (or the product being offered may very well also be NRAS too) is going to dampen any growth in rents for a while for this type of stock.
 
Yes 290k plus stamp duties.

the whole development will be fenced to the entire perimeter and for each allotment with good neighbor fencing. They gonna put a bbq area inside the development as well. all roads and driveways will be concreted as well as paths to perimeter of the dwellings.

This kind of development sounds good to me as i dont have to do anything and and is ready for renting upon hand over.

290k for this is a fair price???
 
Yes 290k plus stamp duties.

the whole development will be fenced to the entire perimeter and for each allotment with good neighbor fencing. They gonna put a bbq area inside the development as well. all roads and driveways will be concreted as well as paths to perimeter of the dwellings.

This kind of development sounds good to me as i dont have to do anything and and is ready for renting upon hand over.

290k for this is a fair price???

There's one born every minute
 
Hi all.
This is my frist post and am a very interested in buying my first investment property in mb.

I am mainly looking at duplexes (both sides) and old trust stock, that still seem to be holding good returns. Even against the new stock popping up around the place.

My main question is, how does everyone see the towns stability going? I know there is a upcoming development with thomas foods and a few other businesses.
And is there still demand from tenants for the old trust houses?

Does anyone also have a good property manager in mb that they recommend?

Thanks to any advise you all can give me.
Sam
 
Murray Bridge does have reasonable population growth which works in it's favour.

One thing to be careful with imho is that there is a lot of new stock coming online in MB, which is putting pressure on yields. Tenants have their pick of new 4x2x2's for CHEAP, and there is only more and more coming available.

There are properties in metro Adelaide with similar yields and less supply concerns + not in a small country town - hence why I haven't bothered buying any properties there at this time.
 
I am mainly looking at duplexes (both sides) and old trust stock, that still seem to be holding good returns. Even against the new stock popping up around the place.

And is there still demand from tenants for the old trust houses?

Does anyone also have a good property manager in mb that they recommend?

http://www.realestate.com.au/property-duplex+semi+detached-sa-murray+bridge-111016183 This baby pulls in $540 PER WEEK,always demand for the old trust homes,in fact i have 5 in Murray Bridge,yields are around 8-10% rent,vacancy is super low,in the 4 years we have been there less than a week.i use 1st real estate as managers.
 
Thanks Jim and Corey.
Corey you have highlighted one of my concerns with the current house I am looking at and I cant get over the current large of new proprieties. and the Trust houses are only getting older and older.

Jim with the Purchase of your duplex would you ever consider developing it or is it simply a cash cow, that you wont touch?

Corey where else would you be looking for around the 300K mark?
Thanks for your help guys.
Cheers
sam
 
Thanks Jim and Corey.
Corey you have highlighted one of my concerns with the current house I am looking at and I cant get over the current large of new proprieties. and the Trust houses are only getting older and older.

Jim with the Purchase of your duplex would you ever consider developing it or is it simply a cash cow, that you wont touch?

Corey where else would you be looking for around the 300K mark?
Thanks for your help guys.
Cheers
sam

As always, outer Northern and Southern Suburbs (only because it's difficult to get into that price range East/West.

For that price range you can get into Ingle Farm and surrounds, or into Christies. There's a *lot* of options in the 200-300k price bracket, likewise 300-400k bracket, which can allow for CF+/CF neutral, development blocks, freestanding houses etc.

You can also get duplex's in the Elizabeth/Playford area for <300k, which can bring in ~8% yields.
 
Corey where else would you be looking for around the 300K mark?
Thanks for your help guys.
Cheers
sam

Hey Sam

Depends a little on your goals and timeframes. Given that you're looking in Murray Bridge, I assume you're into cheap property with good yield - basically any of the outer northern suburbs will give you that.

If you're looking longer term set & forget type investment that'll grow well then look toward the more owner occupied infiltrated areas a bit closer in.
 
Have a client who has done very very well purchasing ex DOH Trust homes in the barossa area (Angaston/Evenston/Angle Vale). Yields are ~10%. They're duplex's on very large lots (~1000-1500sqm total for the two lots). A lot of the time they are on 1 title, but are ready to split into 2 for around $1000 for the paperwork. This instantly creates around $15k+ in equity once split.
 
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