Peoples thoughts on Adelaide?

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

  1. hugh72

    hugh72 Member

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    Do you think Salisbury LGA has more potential than Elizabeth and surrounds?
    As a local does Salisbury have the same stigma in your opinion?
     
  2. D.T.

    D.T. Property Lookerafterer

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    Salisbury has a little bit of stigma, but far less than Elizabeth does.

    Prefer to keep emotions out of things and go by the numbers only. There's plenty of deals that stack up in both IMHO.
     
  3. hugh72

    hugh72 Member

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    Agreed but its interesting to get a local perspective. I look at a suburb like Paralowie which is slightly more expensive, the houses generally are in much better condition. The suburb seems to be owner occupiers and try to gain a better appreciation of the area compared to cheaper suburbs a similar distance from the cbd.
     
  4. D.T.

    D.T. Property Lookerafterer

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    Am a local...

    Paralowie is definitely a shade above Salisbury, for a couple of reasons - mostly owner occupier, and also never received any state housing.
     
  5. hugh72

    hugh72 Member

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    I've seen a few listings there talking about school zoning, is this part of the attraction?
     
  6. D.T.

    D.T. Property Lookerafterer

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    Paralowie has a Reception (SA speak for kindy) through year 12 school in one campus. Zoning for that is fairly large - basically anywhere above Little Para River if you have a look at Google maps.

    That isn't a huge pull though I don't think.
     
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  7. jim1964

    jim1964 Part Time Sheep Farmer

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    I recently got quoted $1500 per 1000 bricks, plus GST plus materials(Mud etc).
     
  8. Newdart

    Newdart Member

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    Hi all, long time lurker, first time poster, this seemed to be an appropriate thread. Hoping to get some good advice for my first purchase!

    What do people think of the Modbury area? I'm thinking of going for a PPOR there with 600+ sqm ~$300k. Redwood Park is a bit cheaper, and I also like highbury but that's stretching the budget.

    I currently pay about 300 a week in rent and I don't even get a backyard. I'm saving 600 a week and I really like the idea of having a house. However I may move in the future so I want a place that could also be a good investment down the road.

    I've also considered the Affordable Homes program which I'm eligible for, but don't really want to live in those areas. I also don't expect much CG in adelaide in the future but rent is a rip off!

    Would love to hear opinions. Thanks :)
     
  9. Azazel

    Azazel Member

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    Hi Newdart, you could go for the the Affordable Homes program for the lols, then use the equity to buy where you want to be, rent out the other place. Some double/maisonettes come up on there occasionally apparently. You could even live in one while renting out the other, or paint/minor reno 1 at a time. Check out the Elizabeth thread if you haven't already. Or hassle Corey Batt on here, he knows what he's on about out there.
     
  10. S1mon

    S1mon Member

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    i dont think you should give up your affordable homes eligibility! get some equity/buy an IP..... them buy your ppor
     
  11. Mcqueen

    Mcqueen Member

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    Honestly, I think you should just sit tight for at least 6 months and see how the economy moves along. Adelaide house prices are stagnating at the moment and rental prices are slowing dropping which means house prices will most likely follow. I live in the Campbelltown area. I've seen someone buy a 3 bedroom 1 bath house in Athelstone last year for $475k and now trying to rent out for $350/week and no takers for 2 months now. So clearly they overpaid for the house. Another one bought a house for $465k 4 months ago and first tried to rent it for $400/week and then dropped it to $370 still no interest. I wouldn't touch the property market right now, the numbers just don't add up. Also the rising unemployment rate in SA doesn't help. Sorry to rain on anyone's parade here but just offering my opinion from another side.


    http://rationalradical.me/2015/06/t...ad-to-have-a-gen-y-perspective-on-the-bubble/
     
  12. Bentley

    Bentley Member

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    Lightsview has limited releases which are part of the affordable house program. However, they get snapped up pretty fast.

    There was a release couple of days back. (Received the email alert).

    Just checked and all under offer.

    http://www.portplus.com/storage/3885/website/index.cfm?pagecall=listings

     
  13. kamchatsky

    kamchatsky Member

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    I am wondering whether it is because the SA business have no confidence in Labour state government as they have been there for so long that they just do the minimum to get by, and with manufacturing and mining collapsing, everybody is leaving for other states to get jobs? causing lower rents?

    Maybe we need to wait until next state election in 2018, and if Liberal wins, it is worth buying again? Or is the current SA Liberals just as bad?
     
  14. 2FAST4U

    2FAST4U Member

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    South Australia's economy is heavily reliant on manufacturing and is simply a casualty of the free trade agreements that favour mining and agriculture over manufacturing and that's how it is. Neither mining or agriculture are labour intensive so there is massive job loss. As things are winding up, the public are very fearful of their future and have stopped spending as much as possible and are paying down their debt's. The federal government knew exactly what the effects of their actions were going to be and found them acceptable as long as the damage landed away from the eastern states. That is where we are are and how we got here, now what to do about it?

    Change of state government might make some people feel better but will do exactly nothing, the problem will still be there and it will need time to transition to other industries to increase the number of jobs. There is no short term solution and unemployment is going to climb a bit higher over time before any drop can happen.
     
  15. Newdart

    Newdart Member

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    Bleak Future

    But what is the point in buying a dodgy Affordable Homes place in a suburb with zero/negative capital growth.. yes they are dodgy, unfortunately I'm not that handy with renovations etc, and I sure don't want to live in Elizabeth. And as far as SA goes, the future for property doesn't look too great.

    Is an IP here even worth the effort? I look at rental properties at up to $300 a week, and they are all awful. Maybe even a PPOR is a bad idea right now?

    I would really like to know, if you (yes you, reading this) had a full-time-casual job in the Adelaide CBD, what would you do? What would your strategy be?

    I appreciate all comments so far :)
     
  16. Joeyv

    Joeyv Member

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    It does seem bad in the short term for Adelaide if you are reading news articles all the time.

    I only buy property's in Elizabeth at the low end 150-180 ish and then rent them so they are cash flow positive. Search for tenants that have jobs. Believe it or not there are working families in Elizabeth. Investing in this sort of area will take a long time to be worth it. But if they are all cash flow positive who cares. One day they will be paid off and worth more. And if they are on big blocks they can be subdivided to, making them more valuable.

    As for your situation I dont know your finances but If I was working in cbd and wanted a ppor I would look somewhere like Gilles plains, Enfield, Pooraka and suburbs that surround them. Once again I would be looking for a big block 750-800sqm that could be subdivided in the future. There is a lot of competition in them areas so economy isn't that bad.
    Also everything seems to sell pretty quickly if it's priced right
     
  17. 2FAST4U

    2FAST4U Member

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    I'd be looking to purchase through the Affordable Homes Scheme. Not all the properties are at Elizabeth. They have one that come up in Ingle Farm, Para Hills, and Wynn Vale etc. You just got to keep an eye out for them and put your offer in fast once you see one you like.

    Medium to long term you're definitely better off buying. Even if there is marginal CG over a few years who cares if you're holding onto it long term? The alternative is throwing away 15k each year in rent.
     
  18. Joeyv

    Joeyv Member

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    Exactly. Even if prices don't rise. Why would you want to pay off someone else's mortgage?

    Most people that make good money from property have held it for a long time. It's a strategy any working person can do.
     
  19. D.T.

    D.T. Property Lookerafterer

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    New dart - definitely utilise the affordable homes scheme if you're eligible. I'd give my left foot to be eligible. The deals on there are ridiculously great and in all kinds of areas. Get something that could use some tarting up, they're already at a nice discount to market value. This will give you a double whammy of equity growth which can then be used to buy a couple IPs or better ppor if you prefer.

    McQueen - you obviously don't follow the market. Awesome deals only come up once a week now instead of daily because it's moving. Far from stagnant and even if it was though - create ya own deals :)
     
  20. Newdart

    Newdart Member

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    Thanks guys. How discounted are the AH properties, as a %? I have looked at the ingle farm/gilles plains areas and don't mind them. I think if I went down that path, my issue might be that I'm casual, would I have any problem getting an IP loan or unlocking equity?