Hi there
I am interested in buying a IP in inner city Adelaid near Payneham. BIS Shrapnel report suggests that property prices will drop towards end of year in Adelaide.
Others like hotspotting suggets that Adelaide is heading for a boom. What do you think friends?
I would be doing some of my own research on this. Don't rely on opinions either; look for the facts.
– Look at the demographics of the area; who is moving in, who is moving out, is the population increasing?
– Are there lots of younger people moving in and renovating existing homes – gentrification is a good sign for cap growth.
– Are there any/many new housing estates under construction or planned?
– Is there planned infrastructure development for the near future such as im proved roads/freeways/trains/bus lines/schools/new hospital/shopping malls.
– What is the employment situation like; are there lots of big businesses, factories, retail etc.
– Are there lots of vacant retail shops around
– What is the rental climate like; is there lots of rental demand, tight rental market.There has been talk of increased mining exploration in the area as well, but has it been verified, and exploration doesn't guarantee that any mining will commence any time soon.
Most of these questions can be answered at the local Council, or by talking to several different local real estate agents as well. If you can; go for a drive around the area for the next couple of months and watch the activity.
Checkout the BHP web site for the MASSIVE expansion at Olympic Dam at Roxby Downs.
Adelaide is still way under priced compared with else where. The lack of infastructure in the city ie sewer and especially water is going to make it very expensive to develop more land to cope with any significant population growth. Growth is happening there, you can still buying blocks with ocean views within 90 min drive of the Rundle mall for $59,900!!!! at Cape Jervis. Kangaroo Island sea side blocks from about $60,000 way, way below replacement cost. Water front lots at Hindmarsh Island for about $150,000.
It all comes down to replacement cost if you can't sell 'em for what it costs to produce with a bit of profit then no one will develop it stands to reason. Add to this increase demand, surely prices will rise to the point of replacement.
This is my opinion only I am not endorsing these towns in SA, but I am investing there quite heavily at the moment…..Good luck!
Mikey PHi, it could be that both parties are right. Some areas might drop in price but the 'drop' is a normal adjustment to sharp increases. Many areas in Adelaide are not likely to drop because as Mikey has said, unless building costs go down, to replace the houses is going to cost just as much. Put on top of that, transaction & holding costs, how can the median price be below $300000?
Anyone knows a brickie who works for peanuts? I have plenty of jobs awaiting! I'm paying close to $40000 to complete the paving for my project. I myself planted 300 new plants since 18 months ago.
What it means is simply, current prices reflect replacement values. House prices can go down only if land prices go down & concurrently, building costs go down as well. Or nobody lives in houses any more.
Payneham, like other suburbs in Adelaide, have gone up significantly [which suburb in Australia hasn't?]. You need to check that the property you're considering, is not overpriced in comparison with its neighbours. I think Payneham may still have some capital growth as it really went up in stutters. It appears to have plateaued for a while. Nearby klemzig has not come down. Windsor Gardens was really low priced 15 months ago & this year, it caught up. The house I looked at (Lowan St) was $265000 & today, would be around $330 – 350000.
I looked at Payneham at that time too & there were bargains too. You might find that today, you can still get something worthwhile.
Houses are not monogeneous enogh to make snap judgements on. Adelaide is in a boom & we don't know when it will stop.
This is a long wordy post but I hope it contributes something.
Good luck,
Kum YinHi Mikey, I'm quite interested in Cape Jervis land blocks. Are you serious that blocks can be had for $60000? I might want a holiday home. Holy Moly, I must be coming up in the world to be talking holiday home!
Can you let me know the paper or agent marketing land blocks?
I have seen the Hindmarsh Island blocks & am not really interested. Port Noarlunga would be my choice after Christies beach. Sellicks beach or Middleton are other options. Unfortunately, landowners know too well the value of their dirt & it's not easy to buy "cheap".
Kum Yin
Hi Kum
Jason Hughes at Fleurieu Realty in Normanville is the man to speak to. Sorry don't have his No check it out on realestate.com
Cheers
MikeyThanks, I might drive to Normanville/Carrickalinga area to check out how it's changed from when I was there 6 years ago.
Have a good week,
kum YinDear James,
We are currently securing homes in the low 200K in adelaide for some of our investors, which based on market indicators will see signfigant growth.
Furthermore, we are securing positive cash flow investments with returns over 10% per annum in regional areas.
Make an enquiry at http://www.buyersagent.com.au to learn more.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers AgentFlavour of the month but will change in time … why not predict the next market and focus on that b4 every one else does …
D
Dear Wealth4life,
I agree with your comment it is very important to look at the entire market on a national level and then secure property accordingly. Whilst saying this there are a number of key reasons why Adelaide and Brisbane will continue to see signifigant growth.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.au<<<<Whilst saying this there are a number of key reasons why Adelaide and Brisbane will continue to see signifigant growth.>>>
Hi Mark,
What would u think the "Number of KEY reasons" are for these two areas, as opposed to say Sydney/Melbourne/Darwin?
Thx,
JBDear Bradje,
Firstly, you cannot say for example Brisbane will have greater growth than Sydney, because you need to review each property and/or suburb on a case by case basis. You will find over the next 24 to 36 months that there will be suburbs of sydney that will outperform particular suburbs in brisbane for example and visa versa.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auDear Bradje,
On a case by case basis or if you like "number of key reasons", you need to use the following checklist before you buy any property:
1) Ask an independent person’s opinion of the town, suburb, and street.
2) Obtain data in relation to past quartly growth and median sale prices.
3) Private and Public Developments (Check state or local government development website for details)
4) Close to major shopping centre, good schools and other infrastructure that will attract good tenants to the area.
5) Within reasonable drive of Major Arterial Highway & Public Transport leading in and out of city.
6) Demand for tenancy (Obtain vacancy rate as a percentage.)
7) Population Growth (Increased or Declined in the past & future predictions, check 2006 census for details)
Employment & Industries to sustain demand for tenancy.
9) Is there any work to be done on the property? (Structural or cosemetic)10) Obtain photos of surrounding homes and streetscape from the agent (If buying sight unseen)
11) What is the land size in sqm (land appreciates, buildings depreciate)
12) Current Rent
13) Market Rent (If the property became vacant, how much would it rent for in today’s market)14) Year Built (Important to know for tax deprecation schedule)
15) All outgoings such as Rates etcTo answer your question, when you do your due-dilligence and research Brisbane and Adelaide stack up the best capital cities based on the the above checklist.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auExcellent list Mark.
Thankyou for the in-depth reply.
Kind regards,
JBDear Wealth4Life,
Being flavour of the month is one of the reasons why you would want to invest there as it is a self perpetuating market.
PS: Brisbane & Adelaide have been the flavour of the month for the past 3 years now, it is just taking some other people longer to catch on.Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auDear Bradje,
No worries glad to help.
If you supply me with your email address I will send you an Info Pack.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auDear Mark
Can you please also send me an info pack. Thanks to all who have commented so far.
Regards
Jamesdean
Employment & Industries to sustain demand for tenancy.You must be logged in to reply to this topic. If you don't have an account, you can register here.
