3 years ago I bought a block of land in Tailem Bend, South Australia. This being a 1000 sq metre block in the middle of the town. I built two small houses on this block during April 6 2005 to December 15 2005. These are now sub-divided as two separate titles. I rented the first unit out in January 2006 (tenant moved out October 2006 with rental being $180 per week). This unit has had no tenant for last two months now. I rented the second unit out for last 6 months at $165 per week. Demand is not as good as I would like for rental. Tailem Bend is gradually developing. This year the council have put in kerbing and concrete pathways and resealed the road. So far each dwelling has cost about $120,000 each all up. I could spend more on extra fencing etc if I wish. How do you view my property investment? Do you think I should hold or sell at this point in time? I have a full time job so I can carry this expense for a while. I have just had an appraisal at around $150,000-$170,000 for each unit. There are no similar dwellings to compare in Tailem Bend so Elders have gone on values in Murray Bridge, the main regional town about 20 kms away (towards Adelaide).
I am from Adelaide initially, how did you choose your location to build ? was there a demand for rental property when you initially built? If I remember correctly Tailem Bend is approx 50km from adelaide is this right?
Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!I think there might be a danger in over capitalising in an area like that with low demand.
A quick look on domain.com.au shows that houses in Tailem Bend seem to be about $130k mark, and then there’s another level a bit over $250k for ones on the river.
Assuming you’re not on the river you might already be at the upper end of what you can expect to get for two properties like yours.
Getting a tennant into the vaccant unit is probably the most important thing to do, since even if you do want to sell a tennant will be an attractive feature
What’s the market like in Murray Bridge itself? It seems that they’ve got fairly strong growth there (why?).
Does the boom in Tailem Bend have anything to do with the boom in Mt Barker?
Mum
I talked to a real estate agent at Tailem Bend today and he said that Mt Barker and Murray Bridge have probably peaked in real estate prices and so Tailem Bend is still affordable (with some more room to peak) being the next regional town after the South Eastern Freeway out from Adelaide. It is along the main highway before it forks off to either the Coorong/South East or the Dukes Highway that leads to Melbourne.[biggrin]
Thanks ‘glengyron’ today I got busy phoning my agent and others hopefully to find tennants for my vacant unit/small house in Tailem Bend. Murray Bridge has certainly had exceptional growth but as I mentioned by talking to a real estate agent today it has been discovered in real estate terms. However just recently an announcement was made to move two major prison centres from Adelaide to Murray Bridge which is proposed to inject more employment, people etc into the area.[exhappy]
Thanks ‘wanelad’ for your quick response. Tailem Bend is the next regional town on from Murray Bridge if you are headed towards Melbourne on the highway. One hour’s drive from Adelaide in commuting time. My first real estate interest in Tailem was to check out a bed and breakfast for sale there about four years ago now. I ended up buying my current block of land instead. [headphone]
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