Thought this was a Adelaide thread not hype the Sydney market to infinity thread!
Peoples thoughts on Adelaide?
- Thread starter havinago
- Start date
Thought this was a Adelaide thread not hype the Sydney market to infinity thread!
Just to qualify a few things, especially for the Croweaters (I was formerly one myself):
- James Ruse is selective high school (and is the best one consistently). So entrance to school is exam based only. There is not such thing as catchment. However people tend to live closer to school once they know their kids gets into James Ruse to minimise travel times for kids (so they can spend more time doing homework!).
- Epping Boys/Cheltenham Girls is the local school where anyone who lives in the area can go in. It is one of the better non-selective public high schools there.
- There is no selective high schools/system in Adelaide. Either your kids go normal public high schools zoned in your home, or enrol them at private schools.
- Railway lines/train stations is a BIG DEAL in Sydney, due to really bad traffic in all parts of Sydney metropolitan areas. It is not such a big factor in Adelaide. Not that many people catch trains there.
- All those Eastern Suburbs before Adelaide Hills can get to Adelaide Chinatown within 15 mins drive, including those suburbs such as Glenunga/Glenside/Linden Park etc. So having lots of Chinese shops there is not such a big deal. However the schools there are very attractive to Chinese due to the quality.
- I see those suburbs mentioned above are like lower north shore in Sydney, except it doesn't have any shores/beaches. It is all leafy area and the more wealthy people lives there.
- So with all those areas above, I think those suburbs will do well as long there is there is enough Chinese immigrants moving to Adelaide over next few years. However I think I would need to negative gear a lot if I want to buy houses there though.
it is more to show that the Asian/Academic factor (which is very ingrained in Sydney) has moved to Adelaide!
No worries, understood
With Sydney becoming more and more expensive by the day, I'm guessing more foreigners are now choosing to move to Adelaide and live near the top public schools to get their kids in.
Adelaide is at 6 oclock on the economic clock.
Guise I'm with PI PLUS for my building and landlord insurance. I just got my new invoices and everything has gone up by about 20%. Has anyone else experienced this?
Examples
Pennington Building Insurance $300,000
Gone from $521.92 to $707.58
Does this sound too high for only 300k? Any other companies to consider?
Examples
Pennington Building Insurance $300,000
Gone from $521.92 to $707.58
Does this sound too high for only 300k? Any other companies to consider?
Just had two EBM renewals come through, no huge increases.
I just returned from Melb and went to a couple of auctions over the weekend in Fitzroy. Was hoping to be moving around there in a couple of years and would have liked to try to buy something early to rent out and then move into later on. These small 2 bedroom places all had auction prices of $700-$800k so I thought that was doable. And then opening bid - 1 million. With both selling at around $1.2 million. Crazy. Didn't realise the agents could BS their estimates over there unlike in SA.
From: http://petewargent.blogspot.com.au/2015/03/mining-manufacturing-and-motors.html
Sounding like 2017-2018 might present a good buying opportunity.
Sounding like 2017-2018 might present a good buying opportunity.
There will be consequential headwinds for parts of the Adelaide economy - particularly the northern suburbs - with the latest 5 year regional forecasts suggesting that a material part of the manufacturing labour force will be lost.
Adelaide is said to suffer from a debilitating "brain drain" of its best and brightest. so the hope for Adelaide according to the forecasts appears to be that healthcare and social assistance employment can plug the cap left by the decline of its manufacturing industry.
Adelaide North is one of a number of regions that has been projected by the Department of Employment to lose a significant share of its manufacturing workforce.
Of course, relative size of the manufacturing industry in each region determines the materiality of the likely impact on the local economy.
Adelaide's total manufacturing employment is projected to contract to around 50,700 by November 2018 or around 7.6 percent of the "all industries" employment, which is down from 55,300 or 8.8 percent as at November 2013.
It'll always be "in a couple of years", for all cities. If you don't take action now when will you?
Maybe after Easter, maybe once i finish doing my tax return. Maybe ill look at houses once the weather clears up a bit. Now its too hot to look at houses, maybe after christmas blah blah blah
Maybe after Easter, maybe once i finish doing my tax return. Maybe ill look at houses once the weather clears up a bit. Now its too hot to look at houses, maybe after christmas blah blah blah
some more negative employment numbers for adelaide
I know I reference him a lot, but I like his blog: http://petewargent.blogspot.com.au/2015/03/mining-manufacturing-and-motors.html
"Adelaide's total manufacturing employment is projected to contract to around 50,700 by November 2018 or around 7.6 percent of the "all industries" employment, which is down from 55,300 or 8.8 percent as at November 2013."
EDIT: Should have read hobo-jo's post first
I know I reference him a lot, but I like his blog: http://petewargent.blogspot.com.au/2015/03/mining-manufacturing-and-motors.html
"Adelaide's total manufacturing employment is projected to contract to around 50,700 by November 2018 or around 7.6 percent of the "all industries" employment, which is down from 55,300 or 8.8 percent as at November 2013."
EDIT: Should have read hobo-jo's post first
I'm not sure. Maybe in other suburbs, but I can't see prices falling very much in the Eastern Suburbs. I've been carefully following the Eastern suburbs market for the past 2 years and demand has been incredibly strong the last 6 months. Most foreigner driven.
Both these properties were sold last month. Just under $900K. Now they are back on the rental market asking for rental which translates to a gross yield of less than 3%! I understand investors might take low rental yields for negative gearing purposes... but this low? Just doesn't make any sense.
http://www.realestate.com.au/property-house-sa-glenunga-415377567
http://www.realestate.com.au/property-house-sa-glen+osmond-118003059
My guess is only a cash rich person (most likely a foreigner ) could do something like that.
If I had the money now I wouldn't be holding out until 2017/2018. Every week is a good buying opportunity. If you do your research there are still heaps of properties in Adelaide's North, which are returning neutral and positive returns. Most people buying up North are buy and hold investors so time in the market is more important than timing the market especially when it comes to property.
It could potentially mean a larger number of renters in the outer northern suburbs due to lack of job security? It wouldn't surprise me over the next few years for yields to continue to increase but growth to be subdued until the market is swamped by investors again looking for a good yield and a positively geared property, then the cycle continues again with a increase in prices after the D&G becomes old news but who knows?
Seems like there's "affordable" units in SA according to this email I got today 
http://view.e.corelogic.com.au/?j=f...17175&jb=ffcf14&ju=fe2610767262037c761477&r=0
http://view.e.corelogic.com.au/?j=f...17175&jb=ffcf14&ju=fe2610767262037c761477&r=0
I think Adelaide has been flat for too long to see a large correction, just don't see things picking up substantially across the board (or in the suburbs I'm watching at least) for another year or two, perhaps longer.
Neutral/positive gearing shouldn't be the only consideration, I'm sure those who invested in mining areas learned that the hard way.
As for most of those investing up north being in it for the long term... I know one investor who bought a couple there a few years ago (probably near the peak), had numerous tenant issues (vacancies, damage, other repairs) and has been trying to get out for break even for some time. Let's not use our anecdotal stories to generalise
Could be right (mostly priced in), but I prefer to wait a little longer and see.
Seems like there's "affordable" units in SA according to this email I got today
http://view.e.corelogic.com.au/?j=f...17175&jb=ffcf14&ju=fe2610767262037c761477&r=0
Theres areas i'd buy units in; the ones listed in that link are NOT those. I'd happily buy houses in those areas though.
