Peoples thoughts on Adelaide?

Discussion in 'Where to Buy' started by havinago, 17th Jun, 2014.

  1. Anon_

    Anon_ Impulse Buyer

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  2. hobo-jo

    hobo-jo Not a bear just a realist

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    That would not surprise me, I think the extended train line (only opened around 12 months ago I think?) has really opened up the transport options from Seaford.
     
  3. Corey Batt

    Corey Batt Finance Broker

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    I was at that launch on Saturday - there was points where people were getting a physical fighting over the apartments available.

    High $$$ event, with a decent food spread, multiple entertainers, football players, channel 9 news presenter as MC etc.

    Reasonable product - but I wouldn't touch apartments in the CBD personally, let alone OTP.
     
  4. JT7

    JT7 Member

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    Yes I think you have hit the nail on the head there Hobo not to mention the improvements to the motorway system.

    Also, and a little off topic, these distortions in global markets affecting the interest rates is pushing things along somewhat.

    You hold onto that Gold and Silver Hobo-jo! Me thinks it'll be worth a pretty penny before all this is over ;)
     
  5. Bentley

    Bentley Member

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    Well, I don't think you could get a 3 or 5 years fixed loan for 3.99% 1.5 years ago.
     
  6. Anon_

    Anon_ Impulse Buyer

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    Just because it has dropped a little more doesn't mean it's going to make house prices surge here. You could have said the exact same thing 6 / 12 months ago and nothing really happened.
     
  7. Bentley

    Bentley Member

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    That's nothing compared to launch of apartments in Sydney. I was at the launch of Crown by Sydney and it was a mad house.

    I know lots of people who eschew OTP apartments in the CBD. I beg to differ and seeing how recent apartment launches have been selling well ( e.g VUE on King William, ERGO etc). I believe we will be seeing more apartments being launched in the CBD and lets be honest here, they are targeted at a specific group of people. Chinese and overseas investors. With the ever increasing immigration numbers, I can't see demand falling.
     
  8. D.T.

    D.T. Property Lookerafterer

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    Far too risky for me.
     
  9. JohnMichael

    JohnMichael Member

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    I posted this in the original thread, but thought I'd post it here in the Adelaide thread. (Original thread and article referenced: http://somersoft.com/forums/showthread.php?t=108536)

    The most startling part of the article was how much less disposable income young people have in Adelaide vs the rest of Australia:

    "Young people in Melbourne are 13 times more wealthy than young people in Adelaide"

    This can't bode well for Adelaide property, surely? Though I guess it's coming off a much lower base. Still, didn't expect a gap of that size
     
  10. 2FAST4U

    2FAST4U Member

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    http://www.adelaidenow.com.au/news/...s-to-71-per-cent/story-fni6uo1m-1227342407773

    Unemployment is up in Adelaide again. It's still lower than the 7.3% Adelaide had during 2014 but it's not good.

    Males seem to be getting particularly hard both in Adelaide and nationally.
    "The male unemployment rate jumped from 6.2 per cent to 7.3 per cent. More than 60,000 males are now unemployed in the state".

    National level-
    http://www.abs.gov.au/ausstats/abs@.nsf/latestProducts/6202.0Media Release1Apr 2015

    The ABS reported the number of people employed decreased by 2,900 to 11,724,600 in April 2015 (seasonally adjusted). The decrease in employment was driven by decreases in full-time employment for males (down 47,900) and part-time employment for females (down 10,700). These were offset by increases in male part-time employment (up 29,700) and female full-time employment (up 26,000).

    The only positive news for Adelaide was that the unemployment rate rose mainly due to greater labour force participation +0.4%.

    Doubt this will have much impact on housing though as most of the unemployment would be concentrated on the long term/structurally unemployed as we can see with the continous prosperity of the Inner City/Eastern Adelaide housing market.
     
  11. eKwatee

    eKwatee You Snooze, You Lose

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    I understand statistics etc. and why they are important. However I believe a large percentage of Adelaide's unemployed don't want to work. I also feel that because suburban Adelaide is an affordable place to live, you can live quite comfortably on unemployment benefits, especially if you are young and sharing expenses with friends or family.

    I live in the North East of Adelaide and don't personally know one person that is unemployed. I also have known quite a few people of late, that have lost their jobs due to redundancies, yet have found another job relatively easily. Both in the skilled and unskilled workforce.

    Don't get me wrong I do realise there are people out there that due genuinely want to find work that cant get a job, but I don't know any.

    I also know of several employers who are looking to employ more staff, so I tend to read unemployment stats with a grain of salt.

    Just my opinion.
     
  12. 2FAST4U

    2FAST4U Member

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    I think the uenmployment is mainly long term and structural (they don't have the skills or experience for jobs in demand). It would be interesting to see the youth unemployment figures because anectodally a lot of young people I know don't have jobs. Yet they are not classifed as unemployed either because they are studying so get masked from the labour force.

    How many of those employers looking for staff would be willing to take on young people?

    Edit- In the past 5 years Adelaide has lost more jobs than it has created so something definitely isn't right.
     
  13. eKwatee

    eKwatee You Snooze, You Lose

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    I know of at least two employers that want to, and are in the process of employing a young person, there's more incentive.

    As an example, I know an electrician that will now only employ younger apprentices because the government has changed the apprentice wage policy. It now costs him allot more (almost double) should he employ an adult apprentice. It costs him more to pay an apprentice who has passed the year 12 'Sace', so he needs to employ the apprentices out of year 10, then he can put on more. He used to prefer employing adult apprentices, but it's just too expensive.

    I believe that you shouldn't be classified as unemployed if you are studying.

    All the young students that I personally know have a part time job. They want money, so they go get a job. They may not be the best jobs in the world, but they are getting money, and it's a good start. Once again, I believe if you want to work, there's a job out there for you.
     
    D.T. likes this.
  14. ADLInvestor

    ADLInvestor Member

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    With Enfield almost completed, Kilburn starting to be sub divided, and Mawson Lakes already established, how long until people think Pooraka will start? I've already seen a few sub divided blocks with new houses selling around the 380k mark.

    Have a property in Montague Estate, trying to figure out whether to hold a little longer or sell.
     
  15. eKwatee

    eKwatee You Snooze, You Lose

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    The older section of Pooraka still seems to be really good buying at the moment, I feel it's under valued in comparison to the surrounding suburbs.

    However I feel Montague Farm Estate is already performing really well and seen good growth, but I guess it depends what year you bought in to it.
     
  16. ADLInvestor

    ADLInvestor Member

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    Thanks for the feedback. Bought it back in late 2012, mid 300k's. 3 bed 2 bath 2 living, 640sqm. Was originally PPOR but turned it investment after 6 months. Valued @ $380k late last year, hoping for a little more out of it!
     
  17. D.T.

    D.T. Property Lookerafterer

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    Why would you sell it for so little gain?
    Aren't you better off pulling the equity out and doing more investing?
     
  18. hugh72

    hugh72 Member

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    +1 By the time you consider your transaction costs there would likely be little gain, why only hold for 3 years?
     
  19. ADLInvestor

    ADLInvestor Member

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    The hope is certainly to keep it for the long term, however if circumstances change (Partners job isn't secure) then we may have to sell - that's the only reason we would.

    We've already accessed the equity in there for a 2nd purchase, i probably should have mentioned that.. Sorry about missing it, only new to these forums!
     
  20. D.T.

    D.T. Property Lookerafterer

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    Ah, fair enough then. :)

    If partners job isn't secure, get some buffer funds loaded up in the offset account to cover duration of X months expenses. Then you can ride any problems out and maintain assets which will serve you well long term.