What would you make out of this?

http://www.adelaidenow.com.au/realestate/news/adelaide-sa/the-best-adelaide-suburbs-for-property-sales-and-rent-in-2015/news-story/3912362982011103de8270a299a5ac89

The best Adelaide suburbs for property sales and rent in 2015

December 18, 2015 12:00amTOM BOWDENREAL ESTATE EDITORThe Advertiser

• Inside SA’s most-clicked on houses
  
• South Australia’s Top 100 homes
  
• Million-dollar views — with a catch
  
• The most expensive homes in Australia
  

LOOKING to find Adelaide’s real estate hot spots or on the hunt for some investment advice?

Well, you’re in luck.

CoreLogic RP Data today releases its annual Best of the Best report, highlighting Adelaide’s top performing suburbs across 10 categories.

The report, which looks at home values for suburbs with at least five sales in the 12 months to September 2015 shows Adelaide’s east was home to the state’s most valuable suburbs.

Unley Park had the highest median house value for the year at $1,647,257, ahead of Springfield at more than $1.61 million.

Adelaide’s most expensive rentals were found in Rose Park, where the median weekly rent was $850, and Unley Park, where rent was $665 per week.

When it comes to affordability, the northern suburbs rule, offering cheap housing, low-priced rentals and strong rent returns.

38 Grove Street, Unley Park.Elizabeth North was the state’s most affordable suburb, with a median home value of $172,484 from 47 house sales.

It also delivered the state’s strongest house rental yield of 7.1 per cent, just below Davoren Park units which delivered returns of 7.8 per cent.

Wingfield, in the Port Adelaide Enfield council area, was named the most affordable suburb within 10km of the city, delivering a median value of $262,528 from its 11 sales.

Real Estate Institute of South Australia chief executive Greg Troughton said Wingfield had experienced some infill in recent years.

The year in property for SA.“There wouldn’t be a whole lot of houses in Wingfield ... and I think as time goes by, as it’s in that 10km circle of the city, that commercial and industrial character will be removed and residential sales will rise significantly,” Mr Troughton said.

In terms of value growth, Dry Creek homes showed the highest increase in median value over the past 12 months, up 26.5% to a median of $310,400, while Kidman Park houses showed the best long-term growth, up 77.7 per cent over the past five years.

“I’m aware of a number of properties out around Dry Creek that have a commercial and industrial component but also with a residential element, so it’s combined living,” Mr Troughton said.

38 Grove Street Unley Park“The convenience of being able to work, live and play on the same parcel of land is very attractive, and more and more people will see the value in this style of property in the coming years.”

CoreLogic RP Data’s Cameron Kusher said combined capital city home values rose 7.8 per cent throughout 2015, with house values up 7.9 per cent and unit values rising 7 per cent.

“As always, there were certain areas across the country that have well and truly outperformed others.”

I'd say that anything with 6 figures in it and starts with anything higher than a '1' I can't afford!! :-)

The most affordable suburbs and the ones offering the greatest yields are the ones listed in the north of the city. There's likely a number of cheap suburbs in the south which will be a little more expensive and also offer comparably more in yields than other areas. I personally would be too keen to live in many of these suburbs. My youngest son is a low income earner. He lives in a run down property in O Sullivan's beach. I would describe the owner of his property as a "slum lord".

The owner bought it for peanuts, doesn't do much maintenance and still reaps a good rental return in comparison to surrounding suburbs. I once had a German family who stayed with me many years ago...their plan was to buy a house in "dodgy area" (housing trust area with on release prisoners) , put some basic furniture in it and rent it to overseas migrants because migrants wouldn't know any better and it would be too late when they arrived!

So, to answer your question...what would I make out of this.

Yes, people of different incomes rent and buy in different areas. People with money can make a good return on their investment by buying in cheaper suburbs.

I'm a property owner that rents...but I choose to live in the suburb that I rent properties out.

The most affordable suburbs and the ones offering the greatest yields are the ones listed in the north of the city. There's likely a number of cheap suburbs in the south which will be a little more expensive and also offer comparably more in yields than other areas. I personally would be too keen to live in many of these suburbs. My youngest son is a low income earner. He lives in a run down property in O Sullivan's beach. I would describe the owner of his property as a "slum lord".

The owner bought it for peanuts, doesn't do much maintenance and still reaps a good rental return in comparison to surrounding suburbs. I once had a German family who stayed with me many years ago...their plan was to buy a house in "dodgy area" (housing trust area with on release prisoners) , put some basic furniture in it and rent it to overseas migrants because migrants wouldn't know any better and it would be too late when they arrived!

 

So, to answer your question...what would I make out of this.

Yes, people of different incomes rent and buy in different areas. People with money can make a good return on their investment by buying in cheaper suburbs.

I'm a property owner that rents...but I choose to live in the suburb that I rent properties out.

Thanks Tamara,

Merry Christmas to All.

If you get thousand people they would make out of this article thousand of a different things.

Margaret Lomas (pls Google) loves Adelaide's North. On paper it is good - highest rental return (and hence lowest entry level for an investor).

But for me North is not where I would put my money.

I repeat one more time what is my philosophy is. Simple. Treat property as a money making machine. That translates into common sense thing. Rental return is not important. Capital growth is not important. What is important is Total Return - that is rental return and capital growth combined. And remembering that a dollar of capital growth is much more valuable than a dollar of rental return. Why? Because they taxed in a different way.

North only makes sense if you are just trying to get your foot on a property ladder.

It is also perfectly suitable as a place to live for the deaf security camera installers. You must be deaf not to be bothered by lunatics raging all night till 5 am. And if you install about 24 security cameras around your house - chances are they move to vandalise some other less protected place.

Some suggest joining shooting club, but that actually would not work. Semi autos are prohibited in AU, and it is highly unlikely that you will be able to reload (even lever action gun) that quickly.

And for the security system - make sure that it stores footage on the network drive. I remember gumtree ad where pet shop was whingeing about stolen security system.

Well, back to money making machine. My post was actually a bet that no one remembers what I was writing before. And I was right again.

What was the fastest growing suburb last year? Hey?????

It was Seacliff - +46% over 12 months.

What is the second fastest growing this year? Aldinga Beach. +20%

What do they have in common? They both are seaside and both are in the South.

This is what I would make out of it. This data makes predicting of the future as simple as a whistle.

Where do you buy?

In the South. Near the ocean.

Where you do not buy? In Seacliff and Aldinga. They had their dream run already, so the next hit will be somewhere in between them.