Good info Xenia IM. Can you give a rough guide as to where these are e.g. inner south-west or whatever?
Peoples thoughts on Adelaide?
- Thread starter havinago
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Good info Xenia IM. Can you give a rough guide as to where these are e.g. inner south-west or whatever?
Hi MTR,
It really depends on ones strategy, and from my own looking, buying and visiting there's something for everyone I believe.
Outer North
The outer north is going to go very strong. There's lots of evidence of money being poured into this area. The government has demolished or renovated its housing dept stock which wipes out the bottom rung, automatically pushing the mean price up. Local council is also doing an excellent job of redeveloping the area into new estates which is attracting lots of FHOG and Owner Occupiers, which in turn also improves the demographic of the area. High yields here make this a safe choice since they'll put money in your pocket whilst waiting. I liken this to Karina et al buying in USA.
Eastern Suburbs
Eastern suburbs are a fair bit more expensive, heavily influenced by owner occupiers looking to get into good school areas. The houses in these areas are often quite old (or there's newer townhouses/units if you prefer) so the yields are pretty average but there's good renovation or development opportunities.
Outer Southern Suburbs
The far south is pretty similar to the Outer North as presented above, except has a slightly higher class of tenant, ie more blue collar vs wifebeater. There's train line and freeway works going on which makes it more accessible and there's also an employment hub around the Lonsdale area. This is more like the outer north suburbs of Perth, where Christies Beach is possibly an attraction, as is the improved infrastructure. EG Collanades Shopping Centre (Christies Downs area) is getting another $50mil reno.
Hi Dave
Thanks for the feedback, very interesting.
So outer north, just wondering if you have specifically looked at land and house packages, when market boom, these do really well, however the down side is you have your money tied up and may miss other opportunities.
MTR
I think what has happened is the old mentality/mantra where people/investors preaching "blue chip" will always outperform has been proven wrong.
I have seen this time and time again, seeing it today.
I think perhaps getting caught up with this "blue chip" thing can be detrimental to long term investing, you need deep pockets for this one. Not saying you should not invest in blue chip, just calling a spade a shovel
MTR
Hi Dave
Thanks for the feedback, very interesting.
So outer north, just wondering if you have specifically looked at land and house packages, when market boom, these do really well, however the down side is you have your money tied up and may miss other opportunities.
MTR
There is a huge amount of H&L supply in the fringe areas to help ease the pressure of 3%+ population growth, but it's definitely in oversupply with poor infrastructure - not something I'd personally invest in. A lot of the development is through the State government renewal authority, who is providing the properties as affordable housing - unlike traditional H&L developments.
As of late I've financed clients into 2-3yr old builds in the area for 30%+ below their original H&L costs, some people are seriously hurting from investing into the packages unfortunately.
That's not good, over supply means prices go backwards.
Indeed and that's exactly what has been happening in those areas. Meanwhile old ex housing trust areas to the south has continued their climb as they contain all the hospitals, schools, buses, medical facilities, football grounds, shopping centres etc. These would be the areas that DT has touched on with his summary.
Long term there will be a bounce back as the sprawl does have geographical limits which cannot be extended (the area directly north cannot be built on as there has been too much degradation of the water tables which cause issues for the growers, but in the meantime it does look like there will be tempered pricing for the developments. Long term the housing for population is pushing back into the old 60's housing areas, hence the rezoning to medium density for huge swathes.
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So do you think in the short-medium term the outer south will out perform the outer north? Due to the increased infrastructure and potentially less land released for new developments?
I'm not familar with the outer south - is the population growth similar to the north region? I know the south definately doesn't carry as much stimga as the northern areas.
Just a mention .. I'm looking at starting early this year and would like to buy 1-2 more within the first term of the year .. So if you find something that looks to be a great deal, happy to pay you a finders fee if I end up buying. I will probably already know about any Eliz or recently off Affordable Homes properties though.
Don't like it at all to be honest
What makes you say that?
Gawler is expanding very quickly. There are several developments taking place like Gawler east, Freeling, Hewett.
They will all use Gawler as the main source.
Not to mention all the new stores that have been built near the race course.
Surely all this will bring some decent growth?
I have a client who has bought really well IMO up there. Sort of deals I reckon you would like.
What sort of price range are you looking at? And are you looking for a specific yield?
Not a fan of Gawler either.
Relative bought into Hewatt years ago - prices have gone nowhere and if not backward.
The shops near the racecourse aren't much chop.
I would prefer to build something in Playford Alive for half the price of buying in Hewatt, Evanston Park or Gawler - plenty more going on there.
Under $500k. All of mine are at least 7% which is what I like, but I am open to lower yield if the growth is there.
Cool, how many : 3?
Let's make it two ...
I thought I found a great buy in Evanston. Listing only up for 5 days and was already under contract. Spewin.
