Adelaide's population is still growing though thanks to immigration.
As far as unemployment goes I'd be a lot more worried about Victoria.
Peoples thoughts on Adelaide?
- Thread starter havinago
- Start date
Adelaide's population is still growing though thanks to immigration.
As far as unemployment goes I'd be a lot more worried about Victoria.
All forms of investment are speculation
I'd rather speculate in Adelaide with its low prices than in somewhere like a Sydney which could send you broke
I'd rather speculate in Adelaide with its low prices than in somewhere like a Sydney which could send you broke
What's more speculative:
Property A (Adelaide):
Rental Yield: 7%
10 yr average CG Potential: 7%
Property B (Melbourne):
Yield: 3%
10 yr average CG Potential:11%
I'd say it's a lot more speculative to heavily negative gear in markets with 4% yields or less. It doesn't mean they can't be fantastic investments, but to suggest speculation in the Adelaide market is a little odd.
I was trying to suggest that investing in Adelaide because its cheap and because 'it will get going eventually' does not seem like a very sound investing basis, and that if one were to invest there it should because of an economic foundation that would likely result in future gains (for example improving employment conditions, increasing income, large projects that have been locked in). I'm speaking at a very macro level obviously (however I'm sure people are still making money there).
Median Adelaide house price to be at least $1 million by 2024 ? Home Loan Experts
THE median house price in Adelaide will reach $1.038 million in the next decade, a mortgage broking firm has predicted.
Analysis by Home Loan Experts has found the median house prices in all mainland capitals is set to climb beyond $1 million.
While it will be music to the ears of current owners, for hopeful homebuyers it means they will be further squeezed out of the property market.
National house prices have skyrocketed at a rate of 8.43 per cent in the 30 years to 2010 and given recent soaring growth rates it is predicted Australians will need to find much larger deposits to afford properties.
Home Loan Experts believe Sydney will remain the most expensive city ? the average median house price in 2024 is tipped to hit $1.824 million.
Darwin is the next worst with a median house price of $1.473 million. Perth is next ($1.392 million), followed by Melbourne ($1.366 million).
In Brisbane, the median house price is set to reach $1.072 million, and Canberra $1.295 million. Hobart is the only capital that is not predicted to reach $1 million and will reach $740,000 by 2024.
Toop & Toop managing director Anthony Toop said the $1 million-plus prediction for Adelaide was ?not beyond possibilities?. ?We are the cheapest mainland capital, so the rest of the country will be at a million before us ... it may take us an extra couple of years,? he said.
?No one ever thought that we would be where we are if you rewind the clock 10 years. It?s just a reality that every 10 years prices pretty much double.?
Real Estate Institute of South Australia chief executive Greg Troughton said he would not be surprised if Adelaide?s median price of $429,000 doubled during the next decade. ?We work on a general rule of thumb that property prices double so it will go pretty close to ($1 million),? he said.
Home Loan Experts managing director Otto Dargan is adamant property prices will continue to rise and he said homeowners would need to look at smaller properties, including apartments. ?The days of the quarter-acre block are coming to an end,?? he said.
?Living in apartments will continue to become a trend. ??
Mr Dargan said household incomes had not kept pace with climbing house prices, making houses were even less affordable.
According to RP Data figures national house prices grew at a rate of 8.43 per cent from $37,500 in 1980 to $425,500 by 2010.
RP Data?s senior research analyst Cameron Kusher believes Sydney house prices could push beyond the $1 million mark but said it would be difficult for the other capitals to do this with historic price rises unlikely to continue at the same pace.
According to RP Data figures national house prices grew at a rate of 8.43 per cent from $37,500 in 1980 to $425,500 by 2010.
In Brisbane the median house price is set to reach $1.072 million in the next decade, Adelaide $1.038 million, Darwin $1.473 million, Perth $1.392 million and Canberra $1.295 million.
Hobart is the only capital that is not predicted to reach $1 million and will reach $740,000 by 2024.
RP Data?s senior research analyst Cameron Kusher believes Sydney house prices could push beyond the $1 million mark but said it would be difficult for the other capitals to do this with historic price rises unlikely to continue at the same pace.
AMP?s chief economist Shane Oliver said Australia has very expensive housing and wage growth had failed to keep up.
He said there would be continued house price growth in the coming decade but it?s likely to be at a slower pace.
?The ratio of house prices to household income is around six times in Australia whereas it?s about three times in the US,?? Mr Oliver said.
?I think there will be years in there where there will be great runs but there will be years where they come off the eight per cent growth rate.?
http://www.adelaidenow.com.au/reale...ome-loan-experts/story-fni0ci8n-1227123724057
THE median house price in Adelaide will reach $1.038 million in the next decade, a mortgage broking firm has predicted.
Analysis by Home Loan Experts has found the median house prices in all mainland capitals is set to climb beyond $1 million.
While it will be music to the ears of current owners, for hopeful homebuyers it means they will be further squeezed out of the property market.
National house prices have skyrocketed at a rate of 8.43 per cent in the 30 years to 2010 and given recent soaring growth rates it is predicted Australians will need to find much larger deposits to afford properties.
Home Loan Experts believe Sydney will remain the most expensive city ? the average median house price in 2024 is tipped to hit $1.824 million.
Darwin is the next worst with a median house price of $1.473 million. Perth is next ($1.392 million), followed by Melbourne ($1.366 million).
In Brisbane, the median house price is set to reach $1.072 million, and Canberra $1.295 million. Hobart is the only capital that is not predicted to reach $1 million and will reach $740,000 by 2024.
Toop & Toop managing director Anthony Toop said the $1 million-plus prediction for Adelaide was ?not beyond possibilities?. ?We are the cheapest mainland capital, so the rest of the country will be at a million before us ... it may take us an extra couple of years,? he said.
?No one ever thought that we would be where we are if you rewind the clock 10 years. It?s just a reality that every 10 years prices pretty much double.?
Real Estate Institute of South Australia chief executive Greg Troughton said he would not be surprised if Adelaide?s median price of $429,000 doubled during the next decade. ?We work on a general rule of thumb that property prices double so it will go pretty close to ($1 million),? he said.
Home Loan Experts managing director Otto Dargan is adamant property prices will continue to rise and he said homeowners would need to look at smaller properties, including apartments. ?The days of the quarter-acre block are coming to an end,?? he said.
?Living in apartments will continue to become a trend. ??
Mr Dargan said household incomes had not kept pace with climbing house prices, making houses were even less affordable.
According to RP Data figures national house prices grew at a rate of 8.43 per cent from $37,500 in 1980 to $425,500 by 2010.
RP Data?s senior research analyst Cameron Kusher believes Sydney house prices could push beyond the $1 million mark but said it would be difficult for the other capitals to do this with historic price rises unlikely to continue at the same pace.
According to RP Data figures national house prices grew at a rate of 8.43 per cent from $37,500 in 1980 to $425,500 by 2010.
In Brisbane the median house price is set to reach $1.072 million in the next decade, Adelaide $1.038 million, Darwin $1.473 million, Perth $1.392 million and Canberra $1.295 million.
Hobart is the only capital that is not predicted to reach $1 million and will reach $740,000 by 2024.
RP Data?s senior research analyst Cameron Kusher believes Sydney house prices could push beyond the $1 million mark but said it would be difficult for the other capitals to do this with historic price rises unlikely to continue at the same pace.
AMP?s chief economist Shane Oliver said Australia has very expensive housing and wage growth had failed to keep up.
He said there would be continued house price growth in the coming decade but it?s likely to be at a slower pace.
?The ratio of house prices to household income is around six times in Australia whereas it?s about three times in the US,?? Mr Oliver said.
?I think there will be years in there where there will be great runs but there will be years where they come off the eight per cent growth rate.?
http://www.adelaidenow.com.au/reale...ome-loan-experts/story-fni0ci8n-1227123724057
Adelaide news always very insightful...
What is every body doing in regards to their property's in Adelaide other than buy and hold?
I want to do a development of some type but where?
Everything worth developing is always auctioned off and after adding everything up there doesn't seem to be any profit in buying an a property and building 2 on it?
I Adelaide at the stage where you have to hold for a while so everything increases price so it is worth developing?
Wouldn't call an anaylsis from a broking firm as news.
There out there, need to move fast. They sell quickly. How often are you looking if it's not every day or two don't expect to get them.
Most development sites go to auction and as they should.
http://www.realestate.com.au/property-house-sa-highbury-118378023
Interesting property.
Value wise would be compared to a 6 bedroom 2 bathroom.
Wonder what the rent for each would be, if you can $290p/w per apartment looking at a 6% yield.
Interesting property.
Value wise would be compared to a 6 bedroom 2 bathroom.
Wonder what the rent for each would be, if you can $290p/w per apartment looking at a 6% yield.
Indeed. If the stairs inside faced the opposite direction it would have been far easier to split without the need for the outside stairs.
I was over in Adelaide on the weekend and saw quite a few dev opportunities
You're right, there out there. Found 2 for a my small scale developer that I work with, just in the last 4 months.
Both easy 1 into 2's, knock down the house, then resell the land as soon as the council have approved, then wait for the titles to come in. Both small developments will net around $55,000 after all expenses. Ones due to settle in the next fortnight.
There's a really strong market for the smaller allotments being resold after the subdivision.
Agreed as this land is normally in a more desirable location compared the remaining land in 'estates'.
There's also the $15,000 for first home owners who construct a new home up to $400,000, sliding scale to $450,000. Also the $8,500 for senior buyers over 60 whether or not they have owned a home before or not up to the $450,000.
This makes a really strong buyers market around the high $100,000's - low $200,000's post subdivision.
You just need to get the initial property for the low-mid $200,000's.
Good thread- thanks all.
Are these the sort of properties you target as 2 from 1's, ekwatee?
http://www.domain.com.au/property/for-sale/house/sa/clearview/?adid=2011535924
And
http://www.domain.com.au/property/for-sale/house/sa/ingle-farm/?adid=2011388711
Blocks of 300sm are listed of approx $190k in clearview. http://www.domain.com.au/property/for-sale/vacant-land/sa/clearview/?adid=2011416165
Forever curious....
Are these the sort of properties you target as 2 from 1's, ekwatee?
http://www.domain.com.au/property/for-sale/house/sa/clearview/?adid=2011535924
And
http://www.domain.com.au/property/for-sale/house/sa/ingle-farm/?adid=2011388711
Blocks of 300sm are listed of approx $190k in clearview. http://www.domain.com.au/property/for-sale/vacant-land/sa/clearview/?adid=2011416165
Forever curious....
I see thanks. My calcs whilst on the bus now go like this...(high level, ballpark)
Purchase price -$260,000
Sd, Transfer, misc etc -$10k
Knock down -$20k
Subdivsion, permits,plans etc -$40k
Loan of $260,000 primary purchase
Loc of $70k for project expenses
Servicing for 6 months -$11.5k @ 5%
Total $341.5k
Sale $380k
Re fees approx $6k
Profit $31.5k before tax
I assume thats the type of calculation id have to use to assess the viability.
Purchase price -$260,000
Sd, Transfer, misc etc -$10k
Knock down -$20k
Subdivsion, permits,plans etc -$40k
Loan of $260,000 primary purchase
Loc of $70k for project expenses
Servicing for 6 months -$11.5k @ 5%
Total $341.5k
Sale $380k
Re fees approx $6k
Profit $31.5k before tax
I assume thats the type of calculation id have to use to assess the viability.
