Rental Market, Adelaide Northern suburbs

[makecents]

Hello all,
First time post, newbie to property.
We have been living in a 2br house in Adelaide North, and have recently purchased a 3br house to make way for a family. The original plan was to sell the 2br house and put the profit made into reducing the mortgage on the new house. But it looks like the market has stagnated since the interest rate increases - as far as the REA tells us and as far as I can tell from how long other similar properties have been on the market.
Its been on the market about 3 months now, coming into xmas, when I imagine the market slows down. The house is definately not overpriced compared to other properties, its just properties in the area arent selling!
We are now looking at renting it out for a year or so and then trying to sell. Can anyone comment on the rental market at the moment and whether it would be a good idea? Any pitfalls to watch out for?
Thanks very much for any advice

ETA if it helps courtyard house in strata, in good condition, recently renovated, near shops, transport etc but not in a fancy suburb.

 

[sash]

The market in the Northern suburbs is mostly for freestanding 3 brm houses or maisonettes, thus probably why the vacancy.

How much rent are you asking and where is it. Currently the demand in the Nortern suburbs is quite strong.

Hello all,
First time post, newbie to property.
We have been living in a 2br house in Adelaide North, and have recently purchased a 3br house to make way for a family. The original plan was to sell the 2br house and put the profit made into reducing the mortgage on the new house. But it looks like the market has stagnated since the interest rate increases - as far as the REA tells us and as far as I can tell from how long other similar properties have been on the market.
Its been on the market about 3 months now, coming into xmas, when I imagine the market slows down. The house is definately not overpriced compared to other properties, its just properties in the area arent selling!
We are now looking at renting it out for a year or so and then trying to sell. Can anyone comment on the rental market at the moment and whether it would be a good idea? Any pitfalls to watch out for?
Thanks very much for any advice

ETA if it helps courtyard house in strata, in good condition, recently renovated, near shops, transport etc but not in a fancy suburb.

 

[makecents]

Hi Sash,
I havent tried to rent it out yet! We have only tried to sell, and it has been on the market for 3 months. I'm pretty sure we are not asking too much relative to other properties, as it seems no (small) properties in the area are selling and we are asking less than some similar places. There isnt anything 'bad' about the property, although being in strata is putting some potential buyers off, due to pets, etc.

My question was about timing I guess, like if it is a bad time to sell would it be best to try to rent for a while and then sell in a year or 2 down the track?

 

[Corey Batt]

What suburb?

 

[makecents]

Salisbury East. Like I said not fancy but in a nice street

 

[sash]

The Northern suburbs market is very slow. Now is not a good time to sell..you might have more luck renting it out.

Just recently some mates and I went there on a shopping trip there. They managed to buy a property each - one got a renovated 3brm house in Elizabeth Downs for 165k and the other a unrenovated house in Paralowie for 240k (also 3 brms).

I unfortunately, did not managed to land a property.

Hi Sash,
I havent tried to rent it out yet! We have only tried to sell, and it has been on the market for 3 months. I'm pretty sure we are not asking too much relative to other properties, as it seems no (small) properties in the area are selling and we are asking less than some similar places. There isnt anything 'bad' about the property, although being in strata is putting some potential buyers off, due to pets, etc.

My question was about timing I guess, like if it is a bad time to sell would it be best to try to rent for a while and then sell in a year or 2 down the track?

 

[Corey Batt]

Lots on the market around the area. I agree with Sash, would probably be better trying to rent it out, anecdotally there has been strong consistent rental demand there.

 

[kum yin lau]

Hi,
Sash's numbers for Paralowie sounds right. I was looking around Xmas last year & decent looking houses on 750m2 blocks were selling between $240-300thousand. The $230K house would rent around $250 pw

I decided not to buy in the lower range because I didn't want any more tenants. BTW, the money I put in stocks did far worse!

20 Ashfield Rd, Elizabeth was asking $239000. On 1000+m2, possibility to either subdivide hammerhead or dormitory style whilst retaining the existing house. I reckon the house as is, would rent for $260 pw. Just a hop away from the Elizabeth shopping center.

This info might be of help to those of you investing or renting there.

The rental market in Adelaide is very, very strong. Sale is difficult but with the amount of devt I'm not keen to sell.

We're at an impasse, with sale prices dropping but yield is beginning to look OK.

KY

 

[sash]

Kum

Yeah...was frankly very surprised at the shocking market.....the rental market is very very strong in the Northern suburbs. I was looking to buy in Brissie but there the sales and rental markets are shocking so Adelaide looked good. This is contrary to what the pundits are saying ...so sometimes it pays to go with your own due diligence.

You are starting to see yields at 6%-7.5%. I can see older properties 16-20klms in the Northern suburbs rent for $300pw if you give it a quick reno in about 2 years. If you buy now at 230-250k that is pretty good buying.

Hi,
Sash's numbers for Paralowie sounds right. I was looking around Xmas last year & decent looking houses on 750m2 blocks were selling between $240-300thousand. The $230K house would rent around $250 pw

I decided not to buy in the lower range because I didn't want any more tenants. BTW, the money I put in stocks did far worse!

20 Ashfield Rd, Elizabeth was asking $239000. On 1000+m2, possibility to either subdivide hammerhead or dormitory style whilst retaining the existing house. I reckon the house as is, would rent for $260 pw. Just a hop away from the Elizabeth shopping center.

This info might be of help to those of you investing or renting there.

The rental market in Adelaide is very, very strong. Sale is difficult but with the amount of devt I'm not keen to sell.

We're at an impasse, with sale prices dropping but yield is beginning to look OK.

KY

 

[Corey Batt]

$260/week in Elizabeth. What a sucker

 

[makecents]

$260/week in Elizabeth. What a sucker

Well there is supposed to be a huge influx of Army personell coming in to work at Edinborough, so they have to live somewhere. If I worked there I wouldnt want to drive for an hour each way! I work in the city though, thats why we moved out of Salisbury.

 

[Corey Batt]

Eh, with the large subsidies and cheap rent, I don't see the new infantry bunking in Elizabeth. Large proportions will stick to anything between Salisbury and Grand Junction Rd, such as Mawson Lakes where a large amount of servicemen live. Much nicer areas, within a 20 min radius.

Hell, you can drive from Holden Hill to Edinburgh base in 25 mins.

 

[Wrenn]

$260/week in Elizabeth. What a sucker

Doesnt seem that unreasonable. On re.com the first 40 rentals out of 80 are $240+ and that includes nearby suburbs like Davoren Park.

As for renting, I kind of agree that most of the new raff people will probably look further afield than the northern suburbs. I work in that area and live in Salisbury but not many people I work with live so close.

But as the rent market is already pretty strong, and the area is predicted to get a lot of growth soon with the raaf base, other developments plus Salisbury/Elizabeth targetted for transit improvements I think holding rentals in the area is a decent plan.

 

[Corey Batt]

Yes and those rentals advertising such prices are either in new developments or relatively new rebuilds.

Considering Kim was saying the property was on 1000 sqm metres, it would be most likely a 50's ex-gov, which you can still pick up for $190-210/week.

In suburbs like Elizabeth or Davoren Park, people won't be picking up an ex-gov unless they have to.

 

[sash]

Remember it is not also soldiers....but also people employed to support this move. So cooks, retail employees, cleaners, etc will need places to live.

Most of these jobs might not pay well and don't have subsidised accomodation. So living in Elizabeth will be an option.

Have you drive around Elizabeth lately....the area is changing...not everyone is a crim....so hard working families live there.

Just look at the people going to the Elizabeth Shopping Centre....it has expanded considerably. That does not happen unless there is disposable income...

Yes and those rentals advertising such prices are either in new developments or relatively new rebuilds.

Considering Kim was saying the property was on 1000 sqm metres, it would be most likely a 50's ex-gov, which you can still pick up for $190-210/week.

In suburbs like Elizabeth or Davoren Park, people won't be picking up an ex-gov unless they have to.

 

[Corey Batt]

Sash: I know what I'm talking about. My PPOR is in Elizabeth Park, workplace in Edinburgh. I've heard the same yarn from real estate agents in Mawson, Parafield, Munno Para, etc. Cooks, cleaners and such would be found through local workers, who already have accomodation.

I just find issue with people who think it will be easy to rent out an ex-gov which has been subdivided for $260 when for $270 you can rent a newly built house in Munno Para etc. Ex Gov properties are generally picked up only if you're doing car flipping around here, so subdividing them removes part of that incentive.

I have no doubt that there is disposable income in this area, with some of the highest paid unskilled jobs of Adelaide being located here. This is also the area of 'bugger that $5 rental increase.' IMO the area is a great investment, I just find issue with expecting high yields on dodgy premises, wherein anecdotal evidence, plus the plethora of currental rental prices known to me which aren't seen on re.com speaks differently.

 

[The Fuzz]

Well there is supposed to be a huge influx of Army personell coming in to work at Edinborough, so they have to live somewhere. If I worked there I wouldnt want to drive for an hour each way! I work in the city though, thats why we moved out of Salisbury.

How long does it take to get your passport stamped to go north of Gepps Cross nowadays?

 

[Pas135]

gday

hey there ,

Newbie here, I do have a couple of investment properties in the Northern Suburbs (Daveron Pk and Elizabeth Park) and whilst the rent return is great I was hoping to move one before Christmas. 959 views on the real estate websites and not 1 enquiry.

so in short its a buyers market and a landlords market i think .