Jump to content
SAU Community

Recommended Posts

Hey,

Probably the wrong forum, but i am looking at an investment property in RAdelaide! just starting to look about and wondering some suburbs you can suggest?

perhaps with some inferstructure plans and or a nice up and coming area? i've only been to Adelaide once as a kid and all i remember is driving round the f1 circuit.

i probably got about 300,000 max to spend between me and my partner.

Link to comment
https://www.sau.com.au/forums/topic/367769-property-in-adelaide-investment/
Share on other sites

  • Replies 80
  • Created
  • Last Reply

Top Posters In This Topic

I agree maket values here are still on the up...Just sold my place which was built 2 years ago.....

Pleanty of places that would make a great rental.

Parafield Gdns is the way to go...or the general location imo.

Sorry to tell you, but Adelaide property is NOT an investment at the present time.

Rental yields are an an all time low in Adelaide, since the values of properties have tripled in the past 10 years, yet rental values have not even doubled (many have moved little at all).

Every piece of evidence points to values remaining static for up to 5 years.

There are lots of issues which are IMHO going to cause up to a 5 year pause if not retraction in the Adelaide/Australian market, including (but not limited to) :

- our current Federal Government (which any second now is going to do a Paul Keating style "the recession we had to have" speech)

- rising interest rates (and they WILL rise at least another 50 points by the end of the year)

- instability (in general) in the world causing oil price increases/uncertainty

- little confidence in the continued resource boom/stock market due to our high Aus dollar and subsequent falling exports

- our in inept State Government (which is on its way out next election, but that is sadly still some years off)

- rising electricity/cost of living

- and worst of all the carbon tax (if God forbid it gets up, which it looks like it will), which will result in massive unemployment and massive rises in inflation (which will have to be battled by even further increases in interest rates).

And hopefully I would know, since I am a mortgage security property valuer (with 12 years experience) for the biggest property group in the world.

Sorry to be a ray of sunshine, but you asked for advice.

But honestly if you STILL want to buy here, employ a "buying agent", which I strongly advise anyone, especially when buying interstate. They can advise, and find a property for you to buy within your specifications. An old mate (previous employer in Darwin in fact) of mine Chris Waterman from Waterman and Waterman 0419848544 - tell him Andrew Nuske sent you to him and he will help you out.

wow andrew, and i always thought you were just full of useless information :P

thats great info though and unfortunately makes it look like investment properties arent the way to go in the near future, maybe i'll look at upgrading myself to a nicer place in the near future and do the investment property further down the track once/if this country sorts its shit out lol.

Sorry to tell you, but Adelaide property is NOT an investment at the present time.

Rental yields are an an all time low in Adelaide, since the values of properties have tripled in the past 10 years, yet rental values have not even doubled (many have moved little at all).

Every piece of evidence points to values remaining static for up to 5 years.

There are lots of issues which are IMHO going to cause up to a 5 year pause if not retraction in the Adelaide/Australian market, including (but not limited to) :

- our current Federal Government (which any second now is going to do a Paul Keating style "the recession we had to have" speech)

- rising interest rates (and they WILL rise at least another 50 points by the end of the year)

- instability (in general) in the world causing oil price increases/uncertainty

- little confidence in the continued resource boom/stock market due to our high Aus dollar and subsequent falling exports

- our in inept State Government (which is on its way out next election, but that is sadly still some years off)

- rising electricity/cost of living

- and worst of all the carbon tax (if God forbid it gets up, which it looks like it will), which will result in massive unemployment and massive rises in inflation (which will have to be battled by even further increases in interest rates).

And hopefully I would know, since I am a mortgage security property valuer (with 12 years experience) for the biggest property group in the world.

Sorry to be a ray of sunshine, but you asked for advice.

But honestly if you STILL want to buy here, employ a "buying agent", which I strongly advise anyone, especially when buying interstate. They can advise, and find a property for you to buy within your specifications. An old mate (previous employer in Darwin in fact) of mine Chris Waterman from Waterman and Waterman 0419848544 - tell him Andrew Nuske sent you to him and he will help you out.

Geez Andrew - you're making me worry about having just bought a house. Seemed to me with the market as it is, I got it a lot cheaper than I would have a few years ago...

As my existing rental has increased from $350/wk to $420/wk over the past 2 years - I'm just glad to get out of the rental market. What is out there is bloody expensive.

Don't misread what I wrote - LIVING in a property is a completely different matter to investment. You are ALWAYS better off owning your own home, as long as you can service the debt should (when) interest rates rise. The long term picture is what you have to consider. However we are NEVER again going to see boom like we had a few years back - property values just can't double again until wages rise considerably, and given what wages (and affordability) has done in the past 10 years, it looks like being a VERY long time before we see any decent value appreciation.

And you have to remember that whilst $420pw seems expensive, if you bought a $300,000 house with a 100% loan (or $330k house with 90% lend) then interest only payments would be $433pw (but you always have to pay more than that), and THEN you have to factor in property tax, rates and maintenance, which you don't have to pay for when renting.

ALL of my thoughts in the above posts are my OPINION. If you speak to 100 people you will get 100 different opinions. So weigh up the empirical data and please use your own noggin as a filter for my 2c :D

Don't misread what I wrote - LIVING in a property is a completely different matter to investment. You are ALWAYS better off owning your own home, as long as you can service the debt should (when) interest rates rise. The long term picture is what you have to consider. However we are NEVER again going to see boom like we had a few years back - property values just can't double again until wages rise considerably, and given what wages (and affordability) has done in the past 10 years, it looks like being a VERY long time before we see any decent value appreciation.

And you have to remember that whilst $420pw seems expensive, if you bought a $300,000 house with a 100% loan (or $330k house with 90% lend) then interest only payments would be $433pw (but you always have to pay more than that), and THEN you have to factor in property tax, rates and maintenance, which you don't have to pay for when renting.

Rent money is dead money - I did the sums on houseloan costs vs renting and it just didnt add up. Given I'm actually ending up with a bigger/better house than I'm renting, and ultimately barely paying any different to what I am now in terms of loan payments. Admittedly, I'll now be up for council rates, water (which my current rental charges me anyway), etc - it still is made up for by owning my own home.

As for garages - damn it was hard to find something in a location I was happy with with a double-garage (not a carport). Also managed to get it with a drive-through out the back - even better. Just a shame the ceilings aren't really high enough for a hoist .. hahaha ..

you could buy my house in roxby:) agree with andrew on all said. if looking for investment maybe think about uni house (corner rundle mall and pultny) one bedders selling for $140k and netting around $14k per year with all fees taken out

or a beachside suburb. My thought is that Christies Beach will be a good investment.... buy now for that 300k walking distance to beach, 10yrs time will see a 50% rise in value IMO.

IMO the real bargain's are the houses for more than $300k,

the missus and i have managed to get our house for $40k less than the owner purchased if for only 8 months earlier. adding in stamp duty the owner has lost nearly $70k over the past 8 months.

we found that in the $300-$400k budget there weren't many houses staying on the market, they were getting snapped up quickly. but the ones $550-$600k were dropping every 4 weeks by at least $20k

but i've been looking around the Glenelg, and surrounding suburbs area's

other area's are going to be different.

You are dead right Brezza.

IMHO one of the biggest drivers of the Adelaide property boom (which began in 2002) was the emergence of savvy load brokers, who quickly realised that the more money you borrow from the bank as a house loan, the more commission they earnt (both up-front and a trailing commission each you you kept your loan with the institution). What we had was every man and his dog going to these home loan brokers and saying "I have found a $250k house and want to buy it - what sort of deal can you get me?" - to which the loan broker replies "nah mate based on your income and (very loose) lenders requirements we can lend you $500k - so go SHOPPING!" - which most people did. This caused the market to rise rapidly with both the first home buyers pushing up the cheap property values due to increased competition, and the people that SHOULD have been buying $250k houses buying $400k-$600k houses.

Of course when the bubble burst and we had 7 x 25 point interest rises in under a year, suddenly all the stupid people who had gone out and purchased homes they could never really afford found out "at 5.5% interest things were just fine, but now they have reached 7.5% I can't afford this loan/house". So what we have seen for the last 3 years or so is an abundance of $400k-$600k homes come on the market and be sold under slight duress scenarios, and those people were then desperate to get back into $250k-$300k properties which they should have bought in the first place. Then the severe watering down of the first home buyers grant at the end of last year reduced demand for even the cheaper homes, so we have the market today - cheap house market is pretty soft, and the $400k-%600k range you get sensational value for money. Obviously the vast majority of people who have homes over $600k aren't hugely affected by the current interest rates, but if it gets much worse that sector of the market will collapse too.

And yes, I have been told many times I should be an ecomomic/property commentator - and I have seriously thought about it. Just can't see how to make money out of it is the only problem. :D

Wow, thanks for the Discussion, please keep it going!! we're really just starting looking i dont think it will happen for another 6 month or so.. tho may happen earlier, shes getting pushy....

the areas i was looking around were parafield gardens and surrounding, even towards port Adelaide, west lake shores etc.. tho i've really got little idea when it comes to Adelaide.. is out towards the hills a good investment? or down south towards dover gardens etc? (i only know dover gardens as i used to send stock to a shop there.)

we were looking in Sydney but for the money its just not worth it for what you can get down there.. Rental is rather similar. borrow 300, get 280ish a week with a possibility of some big upside. however in sydney borrow 300, and you can possible get 350-400 tho with little property value growth.

It may have been Answered but what are rentals like? are there alot looking? do they get filled in quick?

i've only got upside to the job i am working in (2nd year apprentice) took a paycut to get a better career.. so i'm rather financially stable, however to tell you the truth i'd rather invest 350k into shares than into a house...

Then the severe watering down of the first home buyers grant at the end of last year reduced demand for even the cheaper homes, so we have the market today - cheap house market is pretty soft, and the $400k-%600k range you get sensational value for money. Obviously the vast majority of people who have homes over $600k aren't hugely affected by the current interest rates, but if it gets much worse that sector of the market will collapse too.

When i was looking around, the best value for money seemed to be around the $350-400K. The market seemed to be pretty stagnant there and prices steadily dropping. I was able to get what I think was a fairly reasonable price for what I bought (3 bedroom, master with ensuite/wir, separate lounge, double-garage, pergola out the back, full back to base alarm & ducted aircon).

And yes, I have been told many times I should be an ecomomic/property commentator - and I have seriously thought about it. Just can't see how to make money out of it is the only problem. :D

I'm always interested to hear what people say about topics like this - feel free to wax lyrical all you like, Andrew - you seem to know your stuff :)

It may have been Answered but what are rentals like? are there alot looking? do they get filled in quick?

From my very recent experience of the last 5-6 years of renting in Adelaide - it's gotten progressively harder to get an affordable place to live - and the rental prices just keep going up and up. What is out there seems to get snapped up quickly. Not sure if that follows what real estate agents are seeing, or maybe its just the type of properties I like/want ..

I'm so excited to buy my first home, but not looking forward to all these rates/fees that just seem to be getting higher and higher while wages are staying the same. They really know how to make it easier for the next generation of first home owners.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



  • Similar Content

  • Latest Posts

    • From there, it is really just test and assemble. Plug the adapter cables from the unit into the back of the screen, then the other side to the car harness. Don't forget all the other plugs too! Run the cables behind the unit and screw it back into place (4 screws) and you should now have 3 cables to run from the top screen to the android unit. I ran them along the DS of the other AV units in the gap between their backets and the console, and used some corrugated tubing on the sharp edges of the bracket so the wires were safe. Plug the centre console and lower screen in temporarily and turn the car to ACC, the AV should fire up as normal. Hold the back button for 3 sec and Android should appear on the top screen. You need to set the input to Aux for audio (more on that later). I put the unit under the AC duct in the centre console, with the wifi antenna on top of the AC duct near the shifter, the bluetooth antenna on the AC duct under the centre console The GPS unit on top of the DS to AC duct; they all seem to work OK there are are out of the way. Neat cable routing is a pain. For the drive recorder I mounted it near the rear view mirror and run the cable in the headlining, across the a pillar and then down the inside of the a pillar seal to the DS lower dash. From there it goes across and to one USB input for the unit. The second USB input is attached to the ECUtec OBD dongle and the 3rd goes to the USB bulkhead connected I added in the centre console. This is how the centre console looks "tidied" up Note I didn't install the provided speaker, didn't use the 2.5mm IPod in line or the piggyback loom for the Ipod or change any DIP switches; they seem to only be required if you need to use the Ipod input rather than the AUX input. That's it, install done, I'll follow up with a separate post on how the unit works, but in summary it retains all factory functions and inputs (so I still use my phone to the car for calls), reverse still works like factory etc.
    • Place the new daughterboard in the case and mount it using the 3 small black rivets provided, and reconnect the 3 factory ribbon cables to the new board Then, use the 3 piggyback cables from the daughterboard into the factory board on top (there are stand offs in the case to keep them apart. and remember to reconnect the antenna and rear cover fan wires. 1 screw to hold the motherboard in place. Before closing the case, make a hole in the sticker covering a hole in the case and run the cable for the android unit into the plug there. The video forgot this step, so did I, so will you probably. Then redo the 4 screws on back, 2 each top and bottom, 3 each side and put the 2 brackets back on.....all ready to go and not that tricky really.      
    • Onto the android unit. You need to remove the top screen because there is a daughterboard to put inside the case. Each side vent pops out from clips; start at the bottom and carefully remove upwards (use a trim remover tool to avoid breaking anything). Then the lower screen and controls come out, 4 screws, a couple of clips (including 3 flimsy ones at the top) and 3 plugs on the rear. Then the upper screen, 4 screws and a bunch of plugs and she is out. From there, remove the mounting brackets (2 screws each), 4 screws on the rear, 2 screws top and bottom and 3 screws holding in the small plates on each side. When you remove the back cover (tight fit), watch out for the power cable for the fan, I removed it so I could put the back aside. The mainboard is held in by 1 screw in the middle, 1 aerial at the top and 3 ribbon cables. If you've ever done any laptop stuff the ribbon cables are OK to work with, just pop up the retainer and they slide out. If you are not familiar just grab a 12 year old from an iphone factory, they will know how it works The case should now look like this:
    • Switching the console was tricky. First there were 6 screws to remove, and also the little adapter loom and its screws had to come out. Also don't forget to remove the 2 screws holding the central locking receiver. Then there are 4 clips on either side....these were very tight in this case and needed careful persuading with a long flat screw driver....some force required but not enough to break them...this was probably the fiddliest part of the whole job. In my case I needed both the wiring loom and the central locking receiver module to swap across to the new one. That was it for the console, so "assembly is the reverse of disassembly"
    • But first....while I was there, I also swapped across the centre console box for the other style where the AV inputs don't intrude into the (very limited !) space.  Part# was 96926-4GA0A, 284H3-4GA0B, 284H3-4GA0A. (I've already swapped the top 12v socket for a USB bulkhead in this pic, it fit the hole without modification:) Comparison of the 2: Basically to do the console you need to remove the DS and PS side console trim (they slide up and back, held in by clips only) Then remove the back half of the console top trim with the cupholders, pops up, all clips again but be careful at the front as it is pretty flimsy. Then slide the shifter boot down, remove the spring clip, loose it forever somewhere in the car the pull the shift knob off. Remove the tiny plastic piece on DS near "P" and use something thin and long (most screwdrivers won't fit) to push down the interlock and put the shifter down in D for space. There is one screw at the front, then the shifter surround and ashtray lift up. There are 3 or 4 plugs underneath and it is off. Next is the rear cover of the centre console; you need to open the console lid, pop off the trim covering the lid hinge and undo the 2rd screw from the driver's side (the rest all need to come out later so you can do them all now and remove the lid) Then the rear cover unclips (6 clips), start at the top with a trim tool pulling backwards. Once it is off there are 2 screws facing rearwards to remove (need a short phillips for these) and you are done with the rear of the console. There are 4 plugs at the A/V box to unclip Then there are 2 screws at the front of the console, and 2 clips (pull up and back) and the console will come out.
×
×
  • Create New...