salisbury, adeliade and pt mcdonnell

lizzie

lizzie

i've been looking at a block of units in salisbury - in solid condition but in major need of a revamp (last renovated in 1970's) which would increase rental yield.

it's very hard to get a gut feeling about an area without visiting - we're off to adelaide in a month but in the meantime, anyone here know the salisbury area well?

what are the thoughts? it's on the rail line north out of adelaide and i understand a lot of industry is moving that way ... but i'd really appreciate some "on the ground" comments.

an alternative would be a development site at port macdonnell to sell, which would be a lifestyle area south of mt gambier on the southern ocean waterfront. does anyone personally know the area?
 
Lizzie, are you talking about buying a block of units in Salisbury, or just a unit within a block? You say it's on the rail lines - do you mean the units in Loades St?

Anyway, if you were going to buy a single unit, I'd be inclined to buy closer to the city. You could buy something like this:

http://www.realestate.com.au/cgi-bi...er=&cc=&c=95062685&s=sa&snf=rbs&tm=1219911442

Which is only 7km from the CBD for the same price - granted it's only 1br not 2.

Salisbury in general is a lower socio economic area, although better than Elizabeth etc. in general. There is a fair bit of industry (ie. jobs) in the area and some good oportunities for growth, so I wouldn't have a problem buying there. Personally though, I'd focus more on houses with development potential up there. For units, I'd look closer to the CBD like above - the yields aren't neceassarily any better by moving further out up there.

Feel free to keep the questions coming :)
 
If it really must be a block of units you buy, then why not somewhere closer to the city:
http://www.realestate.com.au/cgi-bi...mt=&header=&cc=&c=80875566&s=sa&tm=1219913787

I am assuming it is perhaps this block you are looking to purchase:
http://www.realestate.com.au/cgi-bi...er=&cc=&c=47343809&s=sa&snf=rbs&tm=1219913849

I wouldn't think that buying low $ to rent properties in Adelaide's seedier suburbs would be the best idea, I would think it would attract the worst quality of tenant, but then I'm fairly new to the game...
 
I think it would be worth a closer look.

REA is a painful to deal with. She has sold a few blocks of units in Salisbury this year (think this is 4th or 5th) and usually doesn't give address. Also simple questions like "What are they currently tenanted at?" involve her to phone the vendor to find out and call back few days later.... although does eventually return the call!

Good luck.
 
My 2 cents

I spent about 20 years growing up in the Salisbury area and still go back their once or twice a year so feel I know the area well. In fact I can almost recognise that block of units! I wouldn't rule out all the Salisburys as they've all done pretty well in the last few years as have the rest of the Adelaide suburbs. However, for that sort of money and with that sort of yield you could certainly do better IMO. Do you have a preference for blocks of units? That price range will get a very nice house in the Golden Grove area which is close to the O'Bahn transport link, TTP shopping and the area is MUCH nicer. Not much difference in yield once depreciation is factored in and it's an area that's frequented by tenants who'll give you alot less hassle.

All the best.
 
terrible suburb.... the last thing I would be doing is investing there

I'm from Melbourne and I went to Adelaide early this year. I happened to pop by Salisbury to meet some shop owners re business. Oh the stories I heard.... Apparently it makes Melbourne's worst suburbs look like quality.
 
I always find it intriguing that people from others states bury suburbs the likes of Salisbury and Elizabeth. While I wouldn't choose to live there, I certainly wouldn't be ruling them out as potential investment areas.

As per the Davoren Park thread, the areas north of Adelaide are cleaning up with new development going on and "younger" families choosing to move out to these areas to find their own home being slightly cheaper than suburbs closer to the CBD. Don't be so quick to rule them out.

I've done quite a few loans for Salisbury areas in the last few months, many of them PPORs for very nice people. Personally, if the numbers stack up (and I haven't reviewed the link as yet) then I wouldn't be ruling it out on the basis that "it's Salisbury". Play the numbers.

Cheers
BR
 
Boyler_Room said:
I always find it intriguing that people from others states bury suburbs the likes of Salisbury and Elizabeth. While I wouldn't choose to live there, I certainly wouldn't be ruling them out as potential investment areas.
Click to expand...

Only the ignorant ones. Other interstate people have been buying up there for years and making brilliant returns. But hey, I'm sure the first lot know much more! ;)
 
Argh! My eyes! That building is horrible! :) Thing is, if you tart it up and make it look tooooo pretty and the rent increase is toooooo much you won't get tenants, they'll think someone transported the building from the wrong suburb.

What rent did they say the units would get? I almost rented in Salisbury a few years back (2005) because there were so many 1 and 2 bedroom units in the $80-100 range but I ended up in North Adelaide instead. Very cheap rentals around in Salisbury.

As to Salisbury vs Golden Grove, had a bloke at work who bought a house in Salisbury North, constantly harped on about how fantastic it was to be so close to work, how big his house was for the money, how cool his big pool was, how often he had to remove graffiti from his front fence, how often his security system went off, how often the hoons did burnouts on his street ... then he sold and built in Golden Grove and waxed lyrical about how wonderful his new house was and how awful Salisbury North was.

Salisbury/Elizabeth will be much nicer in 5-10 years, I reckon. Right now they're slightly on the upswing but someone needs to get rid of all the trust houses and the bad inhabitants first. That takes time.
 
RumpledElf said:
As to Salisbury vs Golden Grove, had a bloke at work who bought a house in Salisbury North, constantly harped on about how fantastic it was to be so close to work, how big his house was for the money, how cool his big pool was, how often he had to remove graffiti from his front fence, how often his security system went off, how often the hoons did burnouts on his street ... then he sold and built in Golden Grove and waxed lyrical about how wonderful his new house was and how awful Salisbury North was.
Click to expand...

Statistically, Golden Grove has one of the highest incidences of house break ins throughout the whole of Adelaide (I think it was actually no.1 for a few years in a row, but don't know where to find stats).
 
steveadl said:
Statistically, Golden Grove has one of the highest incidences of house break ins throughout the whole of Adelaide (I think it was actually no.1 for a few years in a row, but don't know where to find stats).
Click to expand...
He went into one of the new areas and built a stupidly large house. Can't remember the suburb name, it wasn't GG but it was in the same overall area. The older areas of GG was the higher end of the low income folks at one point, like the new estates near Elizabeth are now.

Everyone I knew from work - work being at Elizabeth - was either in Prospect, Mawson Lakes, North Adelaide, Hallet Cove or the hillier areas of TTG. Everyone who worked next door at Holden's lived in Elizabeth or Salisbury and were blissfully ignorant that there was a sodding great big defence base right in the middle of their suburb. Bit of a worry when drunk locals at the Elizabeth South train station tried to wander into the base and looked confused at all the barbed wire and satellite dishes and started asking what was in there.
 
RumpledElf said:
He went into one of the new areas and built a stupidly large house. Can't remember the suburb name, it wasn't GG but it was in the same overall area. The older areas of GG was the higher end of the low income folks at one point, like the new estates near Elizabeth are now.

Everyone I knew from work - work being at Elizabeth - was either in Prospect, Mawson Lakes, North Adelaide, Hallet Cove or the hillier areas of TTG. Everyone who worked next door at Holden's lived in Elizabeth or Salisbury and were blissfully ignorant that there was a sodding great big defence base right in the middle of their suburb. Bit of a worry when drunk locals at the Elizabeth South train station tried to wander into the base and looked confused at all the barbed wire and satellite dishes and started asking what was in there.
Click to expand...

Probably Greenwith - some monster houses there.

Amusing about the defence base ;-D
 
crunchtime said:
I'm sure there are plenty of other suburbs in Adelaide offering better return. Yes, you're not intending on living there but with high crime rates and the overall distance it is from the CBD doesn't sound appealing in terms of "investment". :cool:

http://www.somersoft.com/forums/showthread.php?t=44641
Click to expand...

Were you saying the same thing when the houses up there were $50k and semis $25k? Or when they were $100k and $50k? You get the point. Statistaclly, the northern suburbs have often performed much better than areas closer to the CBD. It's all horses for courses.

Would I want to live in Eliz Nth? No. Have I made 35% return on the house I bought there 15 months ago? Yes.
 
crunchtime said:
I'm sure there are plenty of other suburbs in Adelaide offering better return. Yes, you're not intending on living there but with high crime rates and the overall distance it is from the CBD doesn't sound appealing in terms of "investment". :cool:

http://www.somersoft.com/forums/showthread.php?t=44641
Click to expand...

In the last few years places like Elizabeth and Smithfield have outperformed some of the more desirable properties closer to the CBD, both in yield and CG.

As an investment I don't think you can go wrong, especially if you live local (in SA) and know what to look for in those areas.

As for it's future, I do know that where I own my IP, many of the people that have moved there have come from areas closer to the CBD. The population is growing and the jobs and infrastructure are there to support this.

My own tenants are from Port Adelaide and nothing like the stereotype Elizabethans :rolleyes:.
 
Ceduna has again been named as one of the “boom towns” predicted to have the largest increases in housing prices in Australia.
But the median price of houses sold in April, May and June this year was 20.5 per cent lower than the same period last year - $145,100 compared to $182,500 – according to the Real Estate Institute of South Australia’s quarterly report.

These figures are volatile, though, because only 12 and 13 houses were sold in the June quarters of 2007 and 2008.

Streaky Bay house prices rose to $186,000 in the same period, up 11 per cent.

There were not enough houses sold in Wudinna or Elliston to have meaningful figures.

Terry Ryder of www.hotspot ting.com.au said emerging boom towns enjoying a local economic surge are well positioned to provide strong property price growth against the tide of a flat national market.

“They also have the advantage of offering affordable houses because these are locations where prices have not yet exploded – but are likely to in the near future,” he said.

The National Top 12 Boom Town Hotspots research report identifies the standout boom towns across the country with the potential to explode into the next real estate investment hotspots.

Ceduna was named because of the upcoming Iluka mineral sands mining project, other mining operations, the Ceduna Keys marina and the upgrade to the port at Thevenard.

Adelaide and Mt Barker have been removed from the latest report.
 
streaky bay is also getting direct flights to adelaide ... prices in ceduna still aren't cheap considering the population and remoteness ... will have to do more research.

just really window shopping in a new area - with no idea where to start.
 
Depends on a hundred different variable and personal prefernces Lizzie. I looked at some of the regional towns a couple years ago, but to me I decided I would still be better off buying in the cheaper Adelaide suburbs of equivilant price. Less potential risk than buying in a smaller regional and the yields (at the time) were no better than in Adelaide anyway. Also better to be in more restricted supply area when looking at future development - small towns have lots of land to continue to expand into.

But hey that's just opinion. It also comes down to the individual deals, you may find a cracker in a regional that suits you perfectly. :)
 
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