hi everyone,
i have been browsing through the forum and have noticed that there are a few investors in SA who were interested in chatting and bouncing ideas off each other. what a great idea [
][][]i am also from adelaide and writing this post so that i can introduce myself to fellow south australian investors.
my name is Xenia, im 33, married with one child and one on the way. i have a PhD in medical science and have been worked in Canada for 3 years on vaccine research. i have been a property investor since i was 19 and have 5 residential properties and one commercial all in bedford park and prospect. i am no longer working in my proffession as i can make more money from my investments. not to mention that a little person in my life has also taken over my ex-career.
my time is now devoted to looking for new properties , my 10 month old son loves to drive around with me looking at potential investments, who needs kinder gyms and mothers groups, and learning new ideas, i had no idea about the concepts of +ve gearing etc.. 14 years ago when i started. now i want to know what else there is to know [
]by the way what do people think of the northern suburbs like salisbury? that may be our next target! anyone have investment properties there?
keen to hear from other south australians
kind regards [
][][8D]Hello Xenia,
Since Sooshie and A.D. have gone on holidays[8D], AT THE SAME TIME!!!!! [
](who authorsed this[?][?]), I just wanted to say congratulations, and good on’ you. Was it a hard decision to leave medicine, or are you like me, and find that dealing in property is the best medicine of all!!!![^][^][^]I’m not from SA, (Vic), but please don’t hold it against me!!
Nice to hear of another person who drives around looking for property with young children in the car – it’s not impossible, just tests your patience.
Keep up the great work,
Del
Xenia, Like willandel I am also a Vic, but have a SA daughter in law, so also hope that you will talk to me?
I was studying the Adelaide prop market 6 months ago and dropped out as it seemed to be sky-rocketing and getting expensive. I would be interested to hear your thoughts as I like the beach areas but is it getting like the mornington peninsula in Vic where it is now hard to buy in, or just plain expensive? Even if so is it still a great cap growth opportunity still.
Would appreciate your thoughts?
Thanks & regards
Smithers
Doesn’t kiddie like Kinda Gyms ? He can meet other kids there.
Hi Del, thanks for the encouragement, glad to see there are other parent/investors around, hey why not have the best of both worlds if you can, and no it wasnt hard leaving research, the whole structure is based on getting external funding which is not based on how good you are at your job, but on what the funding agencies have decided in that year. i have seen people with nobel prizes get thrown out for no reason. there is no job security and i think you have to be nuts to depend on research for a primary source of income.
hwd007, yes kiddie does like kinder gyms, i have nothing against them and we do go sometimes, just not at the expense of missing property deals. he can’t talk yet, when he does maybe he’ll protest my actions with lines like “mum this is so boring”. We’ll cross that bridge when we come to it, i think have a few years left until bubs slows me down [
]. im only 45 kg, but im still bigger than him [][]Hi Smithers, thanks for your post, adelaide is still sky rocketing and some property areas like beach fronts have become unafordable, im always stunned at auctions when properties sell at prics even higher than what was predicted by agents
. high cap grown unfortunately usually means low rental return in adelaide, but that hasnt stoped us in the past, we used the cashflow from other investments to support low returning properties (negative geared). it worked for us, as the negative geared properties have no doubled and tripled in value and we use the excess equity finance new deals, that may be a way to go? like to know what others think!!!!For positive cash flow, there are still some pockets of areas that are on the rise but not quite there yet, beach areas around 50 km out of the city of adelaide are still affordable but the question remains on what you can buy that can earn income while you are waiting for the areas to go up [?] been thinking of heading that way, but not sure yet.
im keen to hear other thoughts on this, so please keep the posts coming [
][][][]Xenia
Xena,
When you say beach fronts have become unafordable, what prices are we talking here ? Do you mean they wont offer a good investment return or are too risky an investment ? or just very expensive ? I’m curious cause I’ve been thinking about investing in SA possibly in 6 to 12 months from now.
Thanx
Beach front “expensive” compared to i) “what it used to be” and ii) for rental return compared to equivalent property thats NOT beachside.
Xenia,
Nice to see other Adelaide investors identified on forum. []Also made me smirk to see another ex-science property enthusiast. The whims of funding bodies began creating concerns for me 12 months into my PhD!! I can’t imagine trying to start a family on the “security” of a “good job” in science.[xx(]Been considering best approach for my first IP, beach-side south or inland up the freeway. Still gathering info and all ideas welcome
Xenia
We are from Adelaide and have just done a Lease Option deal in the Northern suburbs (Paralowie).
The area is not too far from home so that may have helped choose the area. Also there has been some good growth lately so I hope it continues for a bit longer at least. Houses in the area can still be purchased for a reasonable price compared to properties closer to the city and beach.Good Luck finding the next deal.
Regards
AndrewHey, I live in Adelaide, SA and would be keen to chat. Am busy with work this week, though can always find time.
yes, i agree with what Stephanie said, beach-front property is highly inflated compared to equivalent property that is not beach-front, the % rental returns also seem to be lower due to paying for the view and not the property. another problem that i see with the more expensive suburbs of adelaide which include beach fronts and eastern suburbs is that the older houses are redeveloped before they are sold which also inflates the prices. ie if someone spent $1000 to take out old carpet and polish up floorboards, the value of the house will inflate to more than the $1000 spent. hence as an investor i have been looking for properties in ORIGINAL condition, not redeveloped or enhanced in any way, i want to do all that myself once i buy the property. Such original properties are very hard to find in high capital growth areas [
]. agents actually tell the vendors to redevelop before sale[
!]still if you want to invest for capital growth east and beach side is the way to go in adelaide, they will however be negatively geared so adequate finance to support them is a must. have done this before and given enough time and the right area negative geared properties will revert to positive geared, not sure if this is a great investment tool though
at the moment, we are looking at positive geared properties and like Stephanie and Andrew S, i think northern inland suburbs may be the way to go [
]Hi Xenia,
Great to hear from another SA Investor, my husband and I wanted to know the same thing about Salisbury, as were originally from Melbourne, moved over here about 18 months ago with our 2 year old daughter. We hear from work collegues that Salisbury, Elizabeth, basically keep away from northern & southern (reynella onwards) suburbs. Its just fustrating due to the houses down or up that way are so cheap and need renovating . I just don’t understand, theres all the facilites there, shopping centre, schools, but the only downfall is the trip to the city.
What do people think about Seaford, Maslins Beach & Aldinga Beach is it worth investing or is the market capped. Help! By the way our little girl loves the car and also has anyone ever done a mailbox drop to houses which they were interested in purchasing but the property wasn’t for sale!!!!hi ferris608
i sure would be interested in buying a pair for 120K ijust sold (settled yesterday) a pair in Scott Rd Smithfield Plains (perhaps the worst area in the north) the property was in basic condition i sold it for 158K, to buy at 120K would be very profitable!
regards westanGreat job Weston,
So your saying purchasing property eg, salisbury,elizabeth isn’t to bad, was there much in the renovating of the property!!!!
Hi bjajcr
i’m thinking that now is the time to invest elsewhere, the returns are not good enough for me in elizabeth area. i’m happy to sell 2 more single duplex properties in Magor st and Guther st if anyone wants them for about 88k, put them on the market yesterday. no i did nothing to them except carpet when i bought them in 1997 for 25k each half a duplex. tenants could be a problem so get a very good manager i can advise who not to use. also landlord insurance is essential.
westanThanks Weston,
The next five years we want to renovate & sell hopefully if all goes to plan were hoping to do 5 properties a year. Not being orginally from S.A. we’ve had a look at area which we feel as up & coming. But when talking to friends and workmates there horrifed in area that we’ve chosen, eg: salibury, enfield, morphett vale, hackham, can you tell me is it just a snobbery thing here or are they right about not short term investing in these area, Also, when looking at the median price and the selling price of a home (renovation required) profits not huge but at least 30,000 to 40,000 could be made, Do you have any advise????bjajcr
i don’t live in SA either. but i know that the elizabeth area has a lot of dab tenant problems. as i said i just sold a pair and have two single in elizabeth. since i purchased the properties one tanant has been in the house for 6 years but the other three have regular changes. i have landlord insurance to cover tenant damage, loss of rent etc. so far i would have made a lot more claims than the insurance costs. i asked a very competant rental manager years ago what percentage of tenants would be problem tenants her comment was 50%. so be prepared to have some problems. But on the other hand i’ve made a profit each and every year on these properties and a very handy $210,000 capital gain, which is a lot of cash for me. these properties have been refinanced over the years so i could purchase more cash positive properties. i don’t think these properties would be cash positive at current rentals. anyway i am happy to be selling out of this area. Having said that there is still increadible buyer interest in these suburbs. if you buy contact me direct on 0415438666 so i can tell you who not to use and who i would recommend as property manager. In answer to your question there is a lot of negative (snobbery) attitude to this area from others in Adelaide as you have discovered, but you are looking at an investment not whether you would raise a family in the area. But i don’t feel unsafe when in the area anyway.
regards westanbjajcr
i don’t live in SA either. but i know that the elizabeth area has a lot of dab tenant problems. as i said i just sold a pair and have two single in elizabeth. since i purchased the properties one tanant has been in the house for 6 years but the other three have regular changes. i have landlord insurance to cover tenant damage, loss of rent etc. so far i would have made a lot more claims than the insurance costs. i asked a very competant rental manager years ago what percentage of tenants would be problem tenants her comment was 50%. so be prepared to have some problems. But on the other hand i’ve made a profit each and every year on these properties and a very handy $210,000 capital gain, which is a lot of cash for me. these properties have been refinanced over the years so i could purchase more cash positive properties. i don’t think these properties would be cash positive at current rentals. anyway i am happy to be selling out of this area. Having said that there is still increadible buyer interest in these suburbs. if you buy contact me direct on 0415438666 so i can tell you who not to use and who i would recommend as property manager. In answer to your question there is a lot of negative (snobbery) attitude to this area from others in Adelaide as you have discovered, but you are looking at an investment not whether you would raise a family in the area. But i don’t feel unsafe when in the area anyway.
regards westanThanks Weston, I’ve taken your comments on board,
As for the snobbery thing here in Adelaide, I’ve tried to tell my friends, Hello, its an investment were not living there, like you stated but for some reason it doesn’t jell with them, you can see the horrified looks on there face. Anyway I think if I listen to them I’ll end up no where. So tally ho I go!!!my venture begin!!!Hi Westan,
I was interested in yr post regarding yr investments in elizabeth. I had 2 properties there (sold 1 earlier this year) and the other one I will hold onto as its paying for itself quite well and has increased in price nicely. The main problem Ive encountered with owning IP’s there is getting a good property manager. Ive tried 2 different ones and both have been extremely slack. I would be really interested to hear who u use, if u wouldn’t mind sharing [^]
ThanksHi Westan,
I was interested in yr post regarding yr investments in elizabeth. I had 2 properties there (sold 1 earlier this year) and the other one I will hold onto as its paying for itself quite well and has increased in price nicely. The main problem Ive encountered with owning IP’s there is getting a good property manager. Ive tried 2 different ones and both have been extremely slack. I would be really interested to hear who u use, if u wouldn’t mind sharing [^]
Thanks
][
]
][
](who authorsed this[?][?]), I just wanted to say congratulations, and good on’ you. Was it a hard decision to leave medicine, or are you like me, and find that dealing in property is the best medicine of all!!!![^][^][^]
. high cap grown unfortunately usually means low rental return in adelaide, but that hasnt stoped us in the past, we used the cashflow from other investments to support low returning properties (negative geared). it worked for us, as the negative geared properties have no doubled and tripled in value and we use the excess equity finance new deals, that may be a way to go? like to know what others think!!!!
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