Hi All,
Was hoping to get some opinions about what the best suburb to buy would be in Adelaide. I’m looking to buy around the 350-400k mark as my residence but was wondering what the best options might be for capital gains.
Thanks[biggrin]
Danny
I would look at those suburbs that are priced below the median average for Adelaide and those that are poised for capital growth due to future development. Suburbs that come to mind are:
Hallet Cove and surrounds
Marino
Port AdelaideInvestment Property Management
http://www.adprop.com.auThe question is though, how long to you intend to live in ths property ? Over the long term, I think the closer you are to the CBD, the better your average growth will be. Sure, some suburbs will have short term spikes in value (gentrification, new services, catchup, etc), but that won’t necessarily help over the long term.
My personal “area” is the inner southern suburbs (no more than 10km out) … but I think the inner west has some good potential too with gentrification continuing. You can buy a nice 3BR place for around $400K within 5-8km from the CBD in the south.
http://www.invested.com.au/ … InvestEd :: Teaching Australian’s to Invest
I agree with the 5-10km comment. My feeling for Adelaide is that the outer suburbs have experienced great growth (and possibly have reached their peak) and that the inner suburbs are the next to spike followed again further down the track by the outer suburbs. Mt Barker (as an outer suburb) 30kms out is going to continue to grow and is the fastest growing suburb (in Australia?/Adelaide? can’t remember) and has all the markings of continuining in that vein for sometime yet.
I would still go for inner suburbs though. Clapham is a good one at the moment and also the inner west.
MARKAT
Markat
Email MeOriginally posted by Markat:Mt Barker (as an outer suburb) 30kms out is going to continue to grow and is the fastest growing suburb (in Australia?/Adelaide? can’t remember) and has all the markings of continuining in that vein for sometime yet.
I would still go for inner suburbs though. Clapham is a good one at the moment and also the inner west.
Mt Barker has grown enormously in recent years – there’s been a heap of new development which doesn’t seem to be slowing. The biggest problem is the lack of infrastructure in the town … just going down the shops or to the supermarket is a major pain now!
Clapham is a nice area – just make sure you get a good building inspection done, since some of the properties I’ve seen there have structural problems due to the soil in that area and the construction techniques used in that era. Not something to be overly concerned about – just get it checked out as part of your usual due-dilligence so there aren’t any surprises.
http://www.invested.com.au … InvestEd :: Teaching Australian’s to Invest
Thanks guys, I was thinking along similar lines. I quite like the inner western suburbs so I think I’ll continue to look around there. The 5-10km ring rule seems sensible and I’m generally familiar with most of the suburbs within this area.
The eastern suburbs seem a bit overvalued, do you think there is still much room for Capital Growth?Given how much Adelaide grew in the last boom (mostly catch-up growth), I don’t expect there to be terribly much more growth in the next few years. If we get 4-5% growth pa, then I will be very happy.
Remember that, other than in gentrifying areas and other anomalous areas such as along the coast, the next growth spurt will usually happen closer to the CBD and then work its way outwards.
It may be worth trying to buy as close to the CBD as possible now, so that when the next upswing in the market happens, you can borrow against the growth in your property to buy more futher out as the market catches up.
Of course, nothing ever happens the way theory predicts – so it may not work that well this time (heck, look at the current Perth boom – external factors completely messed up the normal actions in that market !!)
And this is just my opinion too !
http://www.invested.com.au … InvestEd :: Teaching Australian’s to Invest
This website is great! I’ve just bought the first of Steve’s books and am considering trying to purchase a CF+ investment property. What are my prospects in Adelaide at the moment, have any of you guys been successful recently?
Thanks everybody for their input and patience with yet another newbie [biggrin]Adelaide has not experienced as much of an upward growth compared to Melbourne and Sydney. It is therefore relatively cheap compared to the national average for properties.
I’m no expert and don’t have a crystal ball, but I like to think, slow steady growth is what the future holds for Adelaide. I can’t see it booming again for a while!
I haven’t seen a positive cash flow property in a 10 K radius for the last 10 years. You can “create” positive cash flow using techniques such as lease options or setting up properties as student accomodations.
Investment Property Management
http://www.adprop.com.auHi Xenia,
You say their have been no cashflow positive properties within a 10km radius of Adelaide in the last 10years, what about investment units/hotel rooms in inner city Adelaide? Positive Cashflow Properties website has investment properties (fully furnished) with rental guarantees returning up to 10%??
What do you think of these investment units? Have you ever bought any of these and do you think it is worth while? From talking to others about this I gather that you would be unlikely to experience capital growth which makes the investment not very promising?
Cheers
Paul[suave2]” You picking up, what i’m putting down “
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