Peoples thoughts on Adelaide?

[Corey Batt]

Cjay, since its OO, do you think long time growth south outperform north?
Sorry to bring this discussion again. Especially when people think "holden", although we know that's missleading

I think the OO factor within the Southern market is already priced in. I'm more interested in transitions in statistical data than static figures, ie, increases in % owner occupiers etc. This plays a much larger role in short-medium term capital growth.

Which in the case of the outer north, there has been a consistent trends towards owner occupier, but is coming from very low base %.

 

[Brady]

You see, this is the exact reason I did not end up purchasing in this area.
I had been trying to put this point across, but I am always getting challenged

Just because he bought badly doesn't mean the area sucks. People have been showing just as many examples going the opposite way.

I'm up $15k CG in 2 years ~10% . Rental increase by $15p/w over that time now up to just under 8% yield on purchase price. Same tenants the whole time never missed a payment, minimal maintenance.

 

[Finrod]

If at first you don't succeed

If you believe the valuation was low, try with another valuer/lender.

I was recently in a similar situation so had two valuations done on the same property (nsw). The second one came back 20% higher!

 

[Feradd]

been trying to find the stats on this too! he said for Houses and Units, would like to see where the property professor got his stats from. Good news if its true

Hi,

I've been using this site for suburb analysis. I've put in Christie Downs, because that's where I have a property and it says quarterly growth as at 30/06/14 is 2.65% which is 10% annualised. It's a welcome change because this area has gone nowhere since I bought 4 years ago. The average annual growth is 5.64% so it's due for a catch up soon.

http://www.yourinvestmentpropertymag.com.au/top-suburbs/sa-5164-christie-downs.aspx

If anyone knows of any other sites for this type of analysis which is also free please let me know.


Cheers

 

[wll6568]

Adelaide continues to deliver data suggesting a rising market ? and further evidence that those who called the end of the so-called national property boom forget to look beyond Sydney.

The latest figures come from an analysis of Valuer-General?s data by the Real Estate Institute of South Australia. They confirm my own figures showing strongly rising sales volumes throughout Adelaide. The REISA report also provides evidence of the first signs of price growth.

This reinforces the findings of the Price Predictor Index, which suggest a rising Adelaide market in 2014.

I wrote on Property Observer last month:

?The standout market for me at the moment is Adelaide. The South Australian capital has more forward momentum than most of the capital cities. Given that this has not yet translated into major price growth, it represents an opportunity for investors.

?South Australia is the only capital city which ended 2013 with sales volumes rising significantly and carried that into the early part of 2014. Some of our cities peaked, in terms of sales activity, in early or mid 2013. Some ended 2013 strongly but made a lukewarm start to 2014.

?But SA is really just beginning its run.?

The REISA report indicates a 6.2% quarterly rise in the number of houses sold in metropolitan Adelaide. It says the median price rose 4% to $415,000.

I would expect more growth to follow, given the strong pattern of rising sales volumes.

Adelaide and South Australia seldom get the credit they deserve. They only attract national headlines when something negative happens, like the deferral of the Olympic Dam resources project or the closure of a major manufacturing enterprise.

I think few investors realise how much is happening there, particularly in the area of new infrastructure spending and development of new property markets, such as urban renewal projects in the inner-city areas.

Adelaide has major infrastructure projects happening with rail links, road networks, hospitals, education facilities and sports infrastructure.

I commented about two years ago that Adelaide had more infrastructure developments under way than did Sydney. This is no longer true, as the NSW state government has initiated some major projects more recently, but Adelaide remains a significant centre for infrastructure spending, relative to its size.

As the year progresses, I expect to see more from the South Australian capital in terms of rising property markets and significant price growth.

Source: http://www.propertyobserver.com.au/...g-more-price-growth-expected-terry-ryder.html

 

[wll6568]

I think so far only two types of property are doing well, either lower end or higher end. As for mid range, you'd probably have hard times selling. I've seen over the past few months many houses priced between 600k - 800k stuck.

 

[D.T.]

I think so far only two types of property are doing well, either lower end or higher end. As for mid range, you'd probably have hard times selling. I've seen over the past few months many houses priced between 60k - 80k stuck.

If there's houses 60k - 80k, I'll pick up all of them thanks. Just send me an invoice.

 

[Brady]

I think so far only two types of property are doing well, either lower end or higher end. As for mid range, you'd probably have hard times selling. I've seen over the past few months many houses priced between 60k - 80k stuck.

What you need to realise is a huge chunk of properties fall into the lower end compared to our friends across the border. You can buy decent properties <15km from CBD on developable blocks for <$300-500k with 5% yield & <2% vacancy rates.

 

[Bentley]

https://au.news.yahoo.com/sa/a/24576659/sa-govt-approves-million-dollar-copper-mine/?cmp=fb

Wondering what peoples thoughts are on the effect this may have on adelaide property? (Turned down a bargain at Pine Point last yr )
Is it too far from adelaide itself to really matter?

Latest news on this project... seems like its always bad news coming out of Adelaide.

Controversial copper mining proposal near Ardrossan faces setback as managing director resigns and smaller options considered


THE development of the proposed Hillside mine on Yorke Peninsula has suffered a setback with Rex Minerals? managing director resigning and the company announcing it will look at a smaller project.

The company has also said it has not yet accepted the State Government?s offer of a mining lease for the project, which it has another two weeks to accept.

The copper mine was the subject of a protest in Adelaide last week arguing the proposed project near Ardrossan would destroy valuable farming land.

The project has struggled to find the $800 million in funding it needs to progress, and the delays appear to have ended the tenure of managing director Mark Parry.

The company also said it would look at options for a smaller mine, understood to be about half the size, in terms of production, compared with the current plan.

?The potential for a smaller-scale start-up operation is among these options, and the Rex board believes it is in the best interests of all shareholders to broaden the scope of the feasibility study into an extended feasibility study, and include these alternate development options,?? the company said.

Rex said it would look at options which cost less, and would use less land.

This will be seen as a victory for those opposed to the mine, who were angry that the project would destroy prime farming land on the Yorke Peninsula.

Rex shares plunged more than 23 per cent to 29.5c in early trade.

http://www.adelaidenow.com.au/busin...tions-considered/story-fni6uma6-1227017706548

 

[lila77]

What you need to realise is a huge chunk of properties fall into the lower end compared to our friends across the border. You can buy decent properties <15km from CBD on developable blocks for <$300-500k with 5% yield & <2% vacancy rates.

I agree with Brady but just to push the point 600-800k is actually much closer to the upper end in Adelaide. Most of my friends who have high paying jobs (eg. doctors, lawyers etc) live in houses worth around this and in VERY nice suburbs. Other friends in average paid jobs would live in houses of the 300-500k value. You could get a really awesome house in Adelaide for 1.2M (you could also get a crappy run down one only a few km from the city too!).

I myself have a high paying job and live in a really nice new 3 bedroom, 2 bathroom home on a 350sqm block which is close to the city and valued at around 400,000. We are lucky to live in Adelaide.

I haven't invested in Adelaide yet (Sydney and Brisbane only). But Adelaide is on my Radar now. Although personally Brady I think 5% yield is not great - when one of my other properties is 10% and the others are 7% or higher (but that's a discussion for another time).

P.S Investors stay away from Adelaide until I've secured a couple of deals and then you're welcome to buy and help push prices up!

 

[Brady]

Haha would find most are closer to 6%+ but that's not going to help people stay away

 

[D.T.]

Haha would find most are closer to 6%+ but that's not going to help people stay away

I wouldn't go that low, but shhhh

 

[Corey Batt]

Won't get out of bed unless it has a 8 in front of the yield.

 

[Bentley]

Top 5 Adelaide suburbs within 10km of the CBD to grab a bargain on a house or unit

THE FIVE cheapest suburbs to buy a house or unit within 10km of the CBD are all within Adelaide?s north, according to RP Data.

Dry Creek is the most affordable suburb for houses, with a median of $255,349, and Gepps Cross ($313,467), Mansfield Park ($343,040), Woodville Gardens ($347,652) and Kilburn ($349,925) rounded out the top five.

Kilburn is the most affordable for units, at a median of $233,106, with Woodville Gardens, Windsor Gardens, Angle Park and Clearview following.

Kilburn and Windsor Gardens appeared on both the unit and houses list, showing there are affordable properties for both lifestyle choices close to the city.

RP Data research analyst Cameron Kusher said investors and owner occupiers may find the results surprising because it highlights that affordable suburbs near the CBD still exist.

?With low mortgage rates, buyers are battling it out to purchase homes close to the city centres - of course areas closer to the CBD tend to be much more expensive than those areas further away,? he said.

?Inner city suburbs are also generally better serviced by both essential and desirable amenities such as schools, medical services, shopping centres, social amenity, roads and public transport infrastructure.?

He said home values in inner-city suburbs are likely to continue to increase, particularly as mortgage levels remain at low levels.

?If buyers can?t afford to purchase a home within the inner city, they will most likely look to those locations that tick as many of the inner city boxes, just at a lower price point than the inner city areas,? he said

http://www.adelaidenow.com.au/reale...-a-house-or-unit/story-fni0ci8n-1227024399854

 

[Swearengen]

I am currently looking at buying my second ip in Elizabeth, I have one other in WA - anyone else looking there?

 

[D.T.]

I am currently looking at buying my second ip in Elizabeth, I have one other in WA - anyone else looking there?

May have some

 

[Brady]

http://www.realestate.com.au/property-house-sa-rostrevor-117699851

$450k 723sqm existing house can be rented. Already has council approval for 2 two story homes. Good suburb in the Norwood Morialta school zone. A lot of the houses like this are getting knocked down and beautiful new homes built. Great buying, I'm not in the market right now... But would be worth a close looks for those that are.

 

[Brady]

http://www.realestate.com.au/property-house-sa-athelstone-117694747

Something else I really like the look of on face value.

 

[D.T.]

We have very different tastes brady

 

[Brady]

We have very different tastes brady

I have tastes for good value.

Don't you worry I have a redbrick property in Elizabeth East (but that was bought for $175k and its >900sqm)

I think these are good buys, buying into semi-premium suburbs / white collar if you would. Both suburbs have a fair bit happening (jump onto google maps and look at the aerial view)... Note I haven't done much looking into the actual specifics of each property.