Barossa Valley

[APerry]

Hi all,

I was wondering if there is anybody who has had experience investing in property in the Barossa Vally. I travel there frequently because my fiance is from Tanunda, so it would appear an appropriate place to invest if i were to look outside Melbourne. But can anybody give me their impressions of the area from an investment perspective.

Regards
Alistair

 

[Twitch]

I'm not an experienced investor, but wouldn't investment in that area have the downside of a potential plentiful supply of land that could be put into the market, dampening future capital growth? I would imagine though picking up an established rentable house for a cost less than the building replacement cost could be a go'er. You'd want yield to be high though.

 

[quoll]

Grow more grapes

APerry

From memory there was a council move earlier this year or late last to cap the amount of land that was available for housing so as to maximise the available land for growing grapes. I think it was Tanunda council but not sure. Had a look at the time as to rentals and house prices, didn't seem to be much different to other SA locations, 5% return was average. Did think about looking for a big block with potential to build multiple dwellings, figured if the population was going to increase due to work in the wine industry and the land used for housing was not going to increase then townhouses would become the norm and I could cash in later.

Ended up not doing it but.

Cheers
Quoll

 

[APerry]

Thanks for the replies guys. I have heard something similar regarding restrictions on resedential expansion but this won't mean anything unless there is an increase in the population. Do you think that likely? This is one concern i have about SA generally.

 

[house proud]

Hi all,
I do know that the Wineries in the Southern area tend to rent a lot of the homes for their workers. Maybe it is worth a call to some of the main wineries around the Barrossa and ask them if they are in short supply of homes or if they have a rental list.
I was reading in this months Investment Property magazine they say that vineyards are good buys at the present time. However, it is not likely to stay like that as we are selling more wine overseas. ( Hope they havent taken the amount i drink into consideration) Sooo more wine being sold = more work for the industry = more houses needed in the future...just my thoughts.....
HOUSE PROUD.

 

[Ajax]

Considering purchasing a chateau in Tununda Alistair? For a Sydneysider (with no personal knowledge of the Barossa) that brings back some all too vivid memories from my youth (unfortunately nothing to do with property).

Ajax