Properties in SA for <$400k

[leytk004]

Hi All,

I'm looking to buy my first investment property in SA. I currently have $80k ready as a deposit and would like suggestions to some properties. I am new to the real estate arena and do not know where to look so please feel free to bombard me with direct links to these properties.

Criteria:
1. Has potential for Capital Growth (perhaps include reasons why: e.g. large area of land/development potential, location, close to schools & transport, etc.)

2. As close to neutrally/positively geared as possible (before or after tax returns from depreciation).

3. Ideally I would like to avoid LMI but if the property costs more than $400k then please provide a link and outline reasons to why you think it would be a good buy.

All input & suggestions will be very much appreciated!

Yours kindly,

Tayloring Swiftly

 

[DaveM]

Have you considered a buyers agent service for your first toe dip in the water?

 

[D.T.]

Why not first open discussion about properties / areas what you've found so far and if/how they match your investing goals. I'm sure someone can guide you between choosing between a couple of options more easily than assisting with dart-thrown-at-a-map strategy.

 

[Brady]

Why not first open discussion about properties / areas what you've found so far and if/how they match your investing goals. I'm sure someone can guide you between choosing between a couple of options more easily than assisting with dart-thrown-at-a-map strategy.

Agree with the above.

I can shoot out some suburbs I think are great, but tell us a bit about where you think is great. It usually results in better discussion rather then asking for a pin point of peoples picks.

Have you read any of the Adelaide threads going at the moment or some of the old ones. Reasonable amount of info in those threads.

 

[danwatto]

Also don't forget to read the other recent threads on Adelaide:
http://somersoft.com/forums/showthread.php?t=99628
http://somersoft.com/forums/showthread.php?t=104013

One even has almost the same title as yours albeit for $300k

 

[leytk004]

Have you considered a buyers agent service for your first toe dip in the water?

Hi DaveM,

I have considered a BA to help me find my first investment property.

I read through the forum for BAs in Adelaide and came across Paul Siwek from Logica as well as suggestions to contact Waterman & Waterman. Has anyone engaged in these buyers agent services and have experiences to share?

I have been quoted $9k-10k for their services which I think is a bit dear hence why I have made my post to see if I can get any suggestions to assist with my research.

 

[Corey Batt]

It's great you're trying to increase your knowledge. I'd suggest as others have above however to try focus on learning about areas, than asking for people to show specific properties which they think stack up.

Learning to evaluate investments and source them is far more valuable than sifting through suggestions.

There has been a huge surge in information on investing in Adelaide as of late, having a read of the tomes of knowledge on this forum should give you a basic foundation of knowledge, which you can then start asking more targeted questions.

 

[leytk004]

Agree with the above.

I can shoot out some suburbs I think are great, but tell us a bit about where you think is great. It usually results in better discussion rather then asking for a pin point of peoples picks.

Have you read any of the Adelaide threads going at the moment or some of the old ones. Reasonable amount of info in those threads.

Hi Brady,

At the moment I'm looking at properties close to the CBD (e.g. Richmond & Mile End) as I believe this is where there will be high demand in 10 years time and hence there will be more CG compared to other areas.

I have also looked at other similar threads that mentioned buying properties (e.g. in Highbury) with large blocks of land that has development potential. I would be interested in these properties also as long as they don't require renovating as I currently don't have the funds or time to do this. If you have favourite suburbs then I would love to hear them.

My plan is to buy and hold the property for 10-15 years so I guess I just need a bit of assistance to find good properties with CG potential that I can purchase under market value.

Cheers

 

[leytk004]

It's great you're trying to increase your knowledge. I'd suggest as others have above however to try focus on learning about areas, than asking for people to show specific properties which they think stack up.

Learning to evaluate investments and source them is far more valuable than sifting through suggestions.

There has been a huge surge in information on investing in Adelaide as of late, having a read of the tomes of knowledge on this forum should give you a basic foundation of knowledge, which you can then start asking more targeted questions.

Thanks for your input CJay. I also believe being able to evaluate investments and sourcing investment grade properties is one of the most important skills to have. Do you have any suggestions as to where I can begin my learning journey as a beginner?

I am attending a 'Property Investor Training Session' this Sunday on 30/11/2014 from 9am - 4pm at the Hilton Adelaide Hotel so I'm hoping this would give me further insight as to where I can get started. I believe the session is presented by Damien Patterson who is a property investment mentor. I've seen a couple of his youtube videos and they seemed to have good information. Besides, the session is free so why not?

 

[Waldo]

I am attending a 'Property Investor Training Session' this Sunday on 30/11/2014 from 9am - 4pm at the Hilton Adelaide Hotel so I'm hoping this would give me further insight as to where I can get started. I believe the session is presented by Damien Patterson who is a property investment mentor. I've seen a couple of his youtube videos and they seemed to have good information. Besides, the session is free so why not?

As it is free, just be prepared for the hard sell in the presentation. They'll either be selling houses (and hence they get a comission that you end up paying in the end) or trying to sign people up for a education program (telling you all the stuff they hinted at, but didnt tell you at the seminar). Leave your credit card at home is my suggestion & enjoy yourself.

 

[Corey Batt]

Thanks for your input CJay. I also believe being able to evaluate investments and sourcing investment grade properties is one of the most important skills to have. Do you have any suggestions as to where I can begin my learning journey as a beginner?

I am attending a 'Property Investor Training Session' this Sunday on 30/11/2014 from 9am - 4pm at the Hilton Adelaide Hotel so I'm hoping this would give me further insight as to where I can get started. I believe the session is presented by Damien Patterson who is a property investment mentor. I've seen a couple of his youtube videos and they seemed to have good information. Besides, the session is free so why not?

I'd say these forums are probably the largest source to learn from. There's well over a decade of posts on the forum from newbie advice, to extension development feasibility plans. We also do monthly meetups of locals in Adelaide, the last dinner was actually last night - you should definitely come down. Next one won't be until January however, as December is always a hectic month.
with regards to the free info session, I think Waldo has touched on the side well.

 

[leytk004]

I'd say these forums are probably the largest source to learn from. There's well over a decade of posts on the forum from newbie advice, to extension development feasibility plans. We also do monthly meetups of locals in Adelaide, the last dinner was actually last night - you should definitely come down. Next one won't be until January however, as December is always a hectic month.
with regards to the free info session, I think Waldo has touched on the side well.

I would be very keen to come down to the monthly meetups with fellow Adelaidians.

And thanks for the heads up Waldo, I'll be keeping my credit card at home!

 

[HappyCamper]

At the moment I'm looking at properties close to the CBD (e.g. Richmond & Mile End) as I believe this is where there will be high demand in 10 years time and hence there will be more CG compared to other areas.

I've recently bought a house in Mile End @ 5.2% gross yield. Not bad at all for inner city.

 

[D.T.]

I've recently bought a house in Mile End @ 5.2% gross yield. Not bad at all for inner city.

Being in Mile End I'm assuming it's a unit? If so, there's lowish yield plus have to subtract body corp fees out of that too?

 

[HappyCamper]

Being in Mile End I'm assuming it's a unit? If so, there's lowish yield plus have to subtract body corp fees out of that too?

It's a freestanding house.

 

[leytk004]

I've recently bought a house in Mile End @ 5.2% gross yield. Not bad at all for inner city.

Congrats on your purchase! If you don't mind, could you tell me a bit more about your property? (e.g. no. of bedrooms, land size, purchase price). I am also looking for a freestanding house for my first IP around this area and would like to know a bit more about this suburb.

Cheers!

 

[D.T.]

It's a freestanding house.

Sounds like a win then mate

 

[HappyCamper]

Congrats on your purchase! If you don't mind, could you tell me a bit more about your property? (e.g. no. of bedrooms, land size, purchase price). I am also looking for a freestanding house for my first IP around this area and would like to know a bit more about this suburb.

Cheers!

Thanks It's a fairly average condition 4 bedroom / 2 bath / 2 living areas house on about 540sqm. Paid just under 5. Rented out for $500 on a standard lease. Not the kind of house that would appeal to an owner occupier as there isn't much garden left.

 

[Erica]

Richmond and Mile End

At the moment I'm looking at properties close to the CBD (e.g. Richmond & Mile End) as I believe this is where there will be high demand in 10 years time and hence there will be more CG compared to other areas.

I think you are on the right track here, suburbs within 5km to the Adelaide CBD will always have high demand by tenants and property owners alike. I tried to buy this one in Hilton (adjacent Mile End, Torrensville) http://house.ksou.cn/p.php?q=Hilton&sta=sa&id=374684
but missed out. I would recommend a house with large land component, even if you are not interested in developing yourself down the track, the land will achieve you the best capital growth outcome in my opinion.

 

[Brady]

I would recommend a house with large land component, even if you are not interested in developing yourself down the track, the land will achieve you the best capital growth outcome in my opinion.

1000% agree with this comment, Adelaide might not be booming along like Sydney. But buying property in Adelaide with development potential will give you the best chance of accelerated growth IMO. It applies to pretty much every suburb be it down south in Christies/Hackham, north in Elizabeth/Salisbury or in the <15km rings around the CBD.

This type of property in a most places will yield you ~5% which will make holding pretty comfortable, vacancy rates in most of Adelaide is <2% add these two on top of development potential and its a good recipe.