Peoples thoughts on Adelaide?

All valid points but they don't consider potential increases in interest from cashed up people in Sydney looking to leverage off recent large capital growth gains. You could argue that this would only be a small % of the market but investors are generally more interested in the lower end of the market and unless vacancies spike which seems unlikely interest in this market will remain at the lower end IMO

Investors make up 50% of new mortgages. Investors are playing a HUGE part in markets across Australia.
 
Investors make up 50% of new mortgages. Investors are playing a HUGE part in markets across Australia.
That's true & I think hugh72's point on Sydney investors with large capital gains looking to other markets is a potential game changer (but want to see evidence of an impact before convinced). I noticed a big spike in the % of investor finance in the recent AFG release (but Adelaide data is volatile & overall lending wasn't exceptional):

http://www.afgonline.com.au/wp-content/uploads/2015/03/SA-Mar-15.pdf

After 5 years out of the (Adelaide) market, I am watching it a lot more closely these days :D
 
I'd be a touch worried about those huge cracks running down the external wall in the carport. Somethings not quite right there

I'm looking at buying a unit in a good suburb - In or bordering Hyde Park. Something to do up over the next months and rent out and wait for the capital gain.

This contact fell through but is available again
http://www.realestate.com.au/property-unit-sa-hyde+park-119040407

Does this price look like a good buy?

If anyone interested the cracks were severe. MUCH worse than shown in pictures and in all rooms. Looks like sinking from bad plumping that has been going on for years and not been looked at.

Reason I was interested was because in same complex, an identical sold for $355k last year and after a renovation it sold for $70-$80k more 3 months later.

Structural damage on this is too bad though. The one last year sold for a great price and this is just too over priced.
 
If anyone interested the cracks were severe. MUCH worse than shown in pictures and in all rooms. Looks like sinking from bad plumping that has been going on for years and not been looked at.

Reason I was interested was because in same complex, an identical sold for $355k last year and after a renovation it sold for $70-$80k more 3 months later.

Structural damage on this is too bad though. The one last year sold for a great price and this is just too over priced.

That's the pity with these units, some have degraded so bad.

I remember looking at a homette in Kensington Gardens about 18 months ago which listed for 270k. It had suffered from significant movement throughout, whilst at the end of the small group the rest of the properties were unaffected and fetching 440k+.
 
Hobo-jo

Question...

Have you actually been out in the market?

Have you gone to any open homes or auctions?

I'm truely interested to know.



I've been looking to purchase in the eastern suburbs for the past 6 months and can confidently say the market has gone up. This is for the $500-$800k price range and in the school zone for Glenunga International. Most of the properties are only on the market for 2-3 weeks (excluding auction properties) and even those which are scheduled for auctions, get sold prior. With interest rates expected to go down again, I expect the prices to go up further.
 
That's true & I think hugh72's point on Sydney investors with large capital gains looking to other markets is a potential game changer (but want to see evidence of an impact before convinced). I noticed a big spike in the % of investor finance in the recent AFG release (but Adelaide data is volatile & overall lending wasn't exceptional):

http://www.afgonline.com.au/wp-content/uploads/2015/03/SA-Mar-15.pdf

After 5 years out of the (Adelaide) market, I am watching it a lot more closely these days :D

Definitely don't want to catch a falling knife and fundamentals are important, but I always feel more comfortable buying when there is some D&G around. You have less competition, can negotiate price to some degree and are less likely to over pay so in some ways I see it as lower risk. Sentiment will turn eventually as will unemployment and I would rather be in first.
 
I saw this one last night which I was going to buy http://www.realestate.com.au/property-house-sa-evanston-119306603

When I saw the listing it only had 6 views so it had only just gone up. I contacted the agent straight away and he came back saying it was already under contract. Why do these agents dick you around by putting up listings which are already under contract?

I bought my latest purchase from the same agent.In his defence he did the right thing by me,i low balled and they came back to me for a second bite as i was 1st in queue,he had them lining up wanting a contract, some willing to pay a lot more than i did.He put this one under contract only when we went unconditional.
 
Actually I was thinking similar when looking at some properties recently ....

hobo .... Mate .... !!!!!

You actually looked at properties ...

Don't tell me you're actually thinking of buying something ..

Now I'm convinced ... Maybe we are getting to the peak ...

:eek::eek:

Cliff
 
Don't worry See Change, I'm not looking in your bubble market which you've indicated has 5-7 years left to run.

Can I ask Hobo, with all your analytic statistics, why hasn't the stats shown when to get in and out of this market.

One thing I've learnt is you don't never make any money watching the market. You may not lose money, but you'll never make any unless you at least play the game.
 
There is no magic solution to perfect entries & exits eKwatee, but it's kept me out of the Adelaide market for the last 5 years which has suited me just fine in hindsight.
 
There is no magic solution to perfect entries & exits eKwatee, but it's kept me out of the Adelaide market for the last 5 years which has suited me just fine in hindsight.

Really...I've had so many clients clean up in the last 5 years, when does your research actually make you money. I know not everyone's in it for the money, some like it is a hobby, some like it as a tax right off and then there's those that like to research.

One of my clients has made over 20% net profit (over $600k invested), just buying, subdividing and getting back out of the Adelaide in the last 12 months, with all being a quick turn around in his sales. I've yet to find his statistics anywhere in anything you've shown, which proves to me, it's not the stats that count, it's the individual deals that matter.

I guess he'll just leave it to you to keep watching the stats whilst he makes all the money.
 
Not really sure what your point is eKwatee. Congrats to your client I guess?! :confused:

Everyone is welcome to invest in a way that suits them personally (so long as long term goals are met, what does it matter?), I'm not sure why some here find it so offensive that someone might not own property for a period of time.
 
Don't worry See Change, I'm not looking in your bubble market which you've indicated has 5-7 years left to run.

Not really sure what your point is eKwatee. Congrats to your client I guess?! :confused:

Everyone is welcome to invest in a way that suits them personally (so long as long term goals are met, what does it matter?), I'm not sure why some here find it so offensive that someone might not own property for a period of time.

My point was why would you rule out investing in a market based on statistics and others opinion, if there's good income or capital gaining deals out there, why wouldn't you buy into them.
 
I agree there are profitable deals to be made in any market at any time, but I think it's easier & safer (especially as a novice) to play in one where you are flowing with, rather than fighting against, the current.

How many (Adelaide) deals have you turned over for a profit in the last 12 months?
 
I agree there are profitable deals to be made in any market at any time, but I think it's easier & safer (especially as a novice) to play in one where you are flowing with, rather than fighting against, the current.

How many (Adelaide) deals have you turned over for a profit in the last 12 months?

I only ever buy for myself (never sell), however I've been involved in at least 11 deals, that have been both purchased and sold within suburban Adelaide in a 12 month period for a net profit by way of sub-division, reno or development and that's a clear net profit. Instead of spending all my time studying the stats, I actually look for the deals for my clients. which is the point I'm trying to make.......... how much money does researching the market make....none, nil, not a dollar. It's made by getting into the market.
 
I only ever buy for myself (never sell), however I've been involved in at least 11 deals, that have been both purchased and sold within suburban Adelaide in a 12 month period for a net profit by way of sub-division, reno or development and that's a clear net profit. Instead of spending all my time studying the stats, I actually look for the deals for my clients. which is the point I'm trying to make.......... how much money does researching the market make....none, nil, not a dollar. It's made by getting into the market.
Have you profited personally from any of the 11 deals you've been involved in? As a real estate agent I'd expect you'd be involved in many deals.

If it's all as easy as you make out then why not research, buy and flip these deals for yourself instead of clients? Why let them have all the easy money that's just waiting to be scooped up?

I have most of my capital invested elsewhere. So I'm in a market, just not the property market (at present).
 
Have you profited personally from any of the 11 deals you've been involved in? As a real estate agent I'd expect you'd be involved in many deals.

If it's all as easy as you make out then why not research, buy and flip these deals for yourself instead of clients? Why let them have all the easy money that's just waiting to be scooped up?

I have most of my capital invested elsewhere. So I'm in a market, just not the property market (at present).

First off, it's not easy, it's hard work finding the deals, just like the hard work you put in researching the markets etc.

I'm maxed out on my lending or believe me, I would have bought all of them myself, I'd be well along the road to retirement if I'd bought all the deals I've found for others. I make my commission from the re-sales.
 
Don't worry See Change, I'm not looking in your bubble market which you've indicated has 5-7 years left to run.

I'm not sure how long the current run will go for , but I think the 5-7 years was more the time frame for a significant correction , however in terms of my personal Sydney properties , it's academic as our residual properties are all long term B & H .

We've had a nice run in the Sydney market since 2009 . When did you sell in Adelaide .? ...... Maybe you should have bought in Sydney then .

We've never bought in Adelaide , but I might buy one so I have an excuse to come over and say hello .

Elizabeth sounds like a nice place ......

What do you think ?

Where are you looking at the moment ? If you want to pm me for advice I'd appreciate it .

Cliff
 
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