All Topics / Help Needed! / Adelaide newbie suburb selection question.

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Steve_HSteve_H
    Participant
    @stevehank
    Join Date: 2015
    Post Count: 14
    October 13, 2015 - 9:46 pm

    Hello folks, first post on here so please go easy on me!
    I am in the market for my first investment property, looking for established house with potential to add value with a purchase cost of around 350k
    I have read a lot about research and due diligence once you have found a possible suitable property but the part I am struggling with is creating a list of potential properties without first knowing the suburb to invest in.
    Ideally I could do with setting up a search using my criteria for the whole of Adelaide or SA but I cannot see a way of doing this on real estate.com.au you first have to select a suburb and then you are only limited to surrounding suburbs there is no option to add say a 100km radius.
    I hope I have explained my problem clearly, I am not looking for a silver bullet, just some guidance from those more experienced about where to start.
    Thanks very much for any help

    Profile photo of JohnJohn
    Participant
    @blackhat80
    Join Date: 2015
    Post Count: 6
    October 13, 2015 - 10:22 pm

    Hi Steve,

    Glad your not after a silver bullet, because there is no such thing lol.

    I suppose my first question is why Adelaide? From what I am reading, most observers expect a 4 to 7% drop in Adelaide property values over the next 2 yrs or so, (below is a link to one of many articles I have read ref this). I suppose it is dependent on what your strategy is, for me it was all about achieving the best growth, so depending on the time, and where different markets are in their cycle drove where I purchased. My emphasis was to maximise my growth in a property in the first 3 to 4 years to allow me the equity to go again.

    http://www.news.com.au/finance/real-estate/bis-shrapnel-report-reveals-property-prices-to-fall/story-fncq3era-1227416605503

    I would consider all locations, not just where you live.

    Regards

    John

    • This reply was modified 9 years, 1 month ago by Profile photo of John John.
    Profile photo of Steve_HSteve_H
    Participant
    @stevehank
    Join Date: 2015
    Post Count: 14
    October 14, 2015 - 7:49 am

    Thanks for your reply. I suppose the reason for Adelaide is I’m not confident enough to purchase unseen for my first one.
    I’m looking for 10 year+ hold but early growth for equity would be a bonus.
    I am overwhelmed with all the suburbs in one state so I’m not sure I could cope with widening the search!

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416
    October 14, 2015 - 8:25 am

    Hi Steve,

    first post on here so please go easy on me!

    Welcome aboard !! Don’t worry, we don’t bite unless you ask nicely !! :p

    I’m looking for 10 year+ hold but early growth for equity would be a bonus.

    OK – that is a start, but do put some more detail around what type of property you want. I say this, because some suburbs/towns may suit positive gearing, while others suit “buy and hold”.

    Have you sourced finance yet? If not, don’t go looking for a suburb yet. No use in looking in a $500k area if you can only manage $350k pricetag.

    In your case, you mention buy and hold – but is that OK for you if negative geared, or do you need some income from your purchse?

    Are you able to add value by doing a renovation, or a sub-division? If yes, is that only in your area (to do it yourself) or would you be up to handling a remote reno?

    Steve, do come back with more detail – if you aren’t sure yet, that is OK. Especially with your first purchase, take your time to get it “as right as possible” so that you can accelerate into the next one. And do check out this link – there might be some pretty neat ideas in there :-
    https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

    Benny

    Profile photo of Steve_HSteve_H
    Participant
    @stevehank
    Join Date: 2015
    Post Count: 14
    October 14, 2015 - 10:14 am

    Thanks Benny,
    I have deposit purchasing costs and pre approval for a 350k property with a further 50k for renovation costs.
    I am well connected with local trades and don’t think I’m upto a remote Reno just yet.
    I was hoping for positive or at least neutral gearing following the Reno.
    Thanks for your interest, I will read through the links provided tonight
    Regards
    Steve

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    October 14, 2015 - 12:17 pm

    Steve_H – there’s a few Adelaide threads here, the archived Somersoft Forums and on Property Chat forums regarding Adelaide – an absolute wealth of knowledge on areas to purchase in and stats.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Steve_HSteve_H
    Participant
    @stevehank
    Join Date: 2015
    Post Count: 14
    October 14, 2015 - 10:24 pm

    Thanks for all the replies, I heave found some inspiration in the links provided. I am looking for a 3 bed house. Or possibly 2 bed with the potential to add a 3rd. Would it be fair to say a good place to start would be to shortlist suburbs with a median price for 3 bed houses around the value I expect mine would be worth post Reno, and then go from there?
    I will continue reading previous posts and try to educate myself.
    Thanks again
    Steve

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