Southern Adelaide investors- market update please

[Nemo30]

I have one jin the area adjacent to Christie Downs. Bought it under $200k a few weeks ago. Block is over 700sqm. Have renovated and would expect it to be valued mid to high $200's.

Went to open house down the street the other day. A much inferior property on similar block was going for $270ish, renting for $295.

 

[Finrod]

Whilst the low buy in makes Adelaide appealing; why are people bullish on the city? What is driving its growth?

Unemployment is relatively high, gross state product (GSP) growth is low, population growth is significantly lower than the other large cities, and though SA is a resource state - the tapering off of the mining boom probably isn't helping either.

Yes there is a limited land supply element with the hills on one side and the sea on the other, but that's about it?

Disclaimer: I am considering it for investment - if only more fundamentals lined up.

 

[Nemo30]

For me, the low buy in was a huge factor. I wasn't necessarily looking for a buy and hold with future cg. I was looking for something undervalued where I could make instant equity. Didn't take long to find some fantastic deals.

DT and Corey are very knowledgable about the Adelaide market. They gave me very good advice.

 

[freerange]

Im about to put a place on the market in reynella near by, 1960 3x1 with new kitchen bathroom and fitted laundry. New pergola fitted last weekend paving and landscaping this weekend on 400sqm in other words everything brand new, still not 100% on numbers but 4 agents have all said $270000 and it will get snapped up no worries (open door previously mentioned told me the most i would get is $250,000 then gloated about how their average sales time is 4 days)

I have the same problem if not many comparable's due to it being a split block or ones that have sold on similar size blocks have been run down sh*tholes. But full size 700sqm blocks reno'd to the same spec have sold for 330,000 - 350,000.

I worked my numbers out before going into this project at 260,000 so anything over that is icing on the cake.

 

[jim1964]

it will get snapped up no worries

A good agent will test the market with no price for the 1st week or two,let the market tell you what they are prepared to pay.If it will in your words "get snapped up no worries" perhaps the pricing needs to be looked at.

 

[freerange]

Yup thats why i said not 100% sure on numbers just yet. I just asked them all for their honest opinion of what would move it fast.

 

[Erica]

Hi Freerange

Yup thats why i said not 100% sure on numbers just yet. I just asked them all for their honest opinion of what would move it fast.

Would you send me a private message with what agent you are working with, I haven't got any contacts in the area so any recommendation of a good agent would be much appreciated.

 

[S1mon]

DT how come you are so confident ?

 

[Nemo30]

think there is lots going for the area. It's very well located compared to some of the newer suburbs going up.

I was there over the weekend. Surprised by the number of new estates going in near Seaford.