Elizabeth Downs -Hot lead for low cost Mortgagee Sale
- Thread starter Stangman
- Start date
My cousins husband is at holden and has a higher wage than me. They're down to 1000 staff there, not sure how 1000 out of 1mil can be significant?
The longer you hang on the higher your payout will be. Most are applying for jobs and if/when successful, collecting their 'golden handshake'. For some itll be large enough to pay out the mortgage and then go work part time somewhere, even if in a different industry.
Same as any industry - the stoners are going to struggle to find work. The ones that are hardworkers are rarely more than a week out of work.
There's also been some news among the suppliers about finding new businesses to deal with post-holden. I think you should stay away from abc mate its bad for you
The longer you hang on the higher your payout will be. Most are applying for jobs and if/when successful, collecting their 'golden handshake'. For some itll be large enough to pay out the mortgage and then go work part time somewhere, even if in a different industry.
Same as any industry - the stoners are going to struggle to find work. The ones that are hardworkers are rarely more than a week out of work.
There's also been some news among the suppliers about finding new businesses to deal with post-holden. I think you should stay away from abc mate its bad for you
I get what you're saying. You're saying itll have a major negative impact. Thats cool. Im saying itll have a very minor negative impact since a) they're small now and b) they're redeploy able.
It may even be a positive impact if the state govt gets to stop sending billions into their gaping furnace existence.
This i do agree with.Brocks got a lot to answer for.
http://www.adelaidenow.com.au/news/...takes-sick-leave/story-fnl3k6uz-1226861980600
Not bullish its a reasonably safe bet with modest yield and growth opportunity.
What's your thoughts on the last decades growth?
Of course previous performance doesn't guarantee future, but considering the large scale redevelopment which has been achieved with the new council direction, State and Federal injections and some of the highest population growth in the entire State, let alone in the highest performers in the country.
I'm more of the opinion in weighing up all pro's and cons, than jumping from headline to headline.
Pros are good rental yield. Many posters report 7% or even 7.5% - pretty good. Quick look through rpdata confirms 7-7.5% is quite a regular result. Can't see any other pros I'm afraid...
Cons: well, quite a few, for example the last decade's / last 5 years capital growth?
Quoting rpdata for Elizabeth North:
* Change in Median Price (5yrs) is -11.3%
* Annual Change in Median Price (10yrs) is 3.2%
Typical Adelaide outer suburbs (e.g. Woodcroft, Morphett Vale) recorded 5yr growth of about +7 to +12% and 10yrs average of about 5%...
I see many properties advertised in Elizabeth for less than they sold 5-6 years ago...
Horses for courses. Yield: tick, but growth may be problematic??
The yield is unquestionable; however, in relation to the capital growth I'd suggest it will improve in the future and would attribute the low growth to the new land and development releases down north. Developers have built up Evanston, Penfield, Andrews Farm, and Blakesview within the past decade. There has also been a gentrification of Munno Para and parts of Smithfield. That development and gentrification will benefit Elizabeth down the track but currently it's stuck with a stigma, which will eventually change as the Housing Trust sells off more of its stock and the area becomes privatised.
I'm sure there are a lot of investors like CJay who currently own stock in Elizabeth but are just sitting on a buy and hold strategy and waiting to capitalise upon development in the future. The 30 year plan done in 2010 had a strategic vision of limiting urban sprawl and limiting the amount of new land releases. Instead of being 70/30 they want to turn that ratio into 50/50, which means 50% of all population and dwelling growth will be done inside already established areas next to public transport corridors.
As for the socio-economic standard of Elizabeth that is set to improve not just because of privatisation. Housing commissions throughout Australia have realised their mistakes of creating ghettos by building entire suburbs based around public housing e.g Claymore/Airds in NSW. Subsequently, public housing is now dispersed throughout the entire metropolitan areas. Moreover, once housing trust homes are sold off in Elizabeth they are getting replaced with first homebuyers, and working class people and the original tenants are being relocated into different suburbs. The 30 year plan has predicted Adelaide?s population to grow by over half a million so there?s certainly not going to be any shortage of tenants either.
Most of the ones I've bought have been below what the previous owner has bought them for. This is because property (and most asset classes) works in a cycle - you should lookup more details on this on forums such as this one. It's similar to how CBA shares fell 60% in 2009.
If the property is on developable block and is purchased at the bottom of the cycle, it's fairly difficult to not achieve capital growth. And since they pay for themselves that just makes it sweeter.
Also, you seem to have only choose Elizabeth North and not any the other dozen suburbs in that postcode.
I also own IPs in Elizabeth for the sole purpose of yield.
I have a house that gets over 8.5% when I first bought it. Not a semi a freestanding house. With good tenants that always pay on time. It is actually paying itself off. I I could buy this exact house again with the same tenants I would 20 times.
I however am realistic and do not see any CG for a long long time. It wouldn't surprise me if houses in Elizabeth are similar priced in 10 years.
There was a mini boom in 2007- 2009. In 2012 prices started falling and now you can buy houses that are same price in 2006.
Its good to know they are selling off housing trust houses but this will not get rid of the stigma of Elizabeth because the bogans that live in Elizabeth aren't g going anywhere. They cant afford to Elizabeth is where they know how to survive.
I guess what I am saying is if you buy in Elizabeth you are hear for a long long time
as the saying goes, "past performance is not a indication of future performance"
As DT says, Previous purchase price should only be used as part of the negotiation process, or to get a gauge of the investment cycle,
paying $250k for a house thats worth $200k now, when the previous person paid $500k for it, is not a good deal
As DT says, Previous purchase price should only be used as part of the negotiation process, or to get a gauge of the investment cycle,
paying $250k for a house thats worth $200k now, when the previous person paid $500k for it, is not a good deal
Means it's s good time to buy, or is it better to buy in sydney when it has grown 16 percent in one year? more opportunity for growth in the long run in my view in places like elizabeth and major rural centres than the inner city.
Other pro's:
- Suburb density changes allowing a significant portion of properties to be developed.
- Significantly above average population growth in the area
- Extensive development funding from Local, State and Federal governments. (The Edinburgh precinct on the opposite side of the train tracks alone is a 1.9 billion dollar project and provides a multiple in jobs than Holdens)
I don't think Elizabeth is the be all and end all of investment, but I do think it's a tad sensationalist to focus on one negative aspect and put complete blinders on when comparatively looking at an area to invest in.
You've touched on a very important point, if you bought at the peak of the premium boom in Elizabeth you were in for some pain. To give some perspective lets look at Elizabeth Park. In 2007 the annual growth was 15.3%, and in 2008 a further 21.9%. I remember during this time yields were at 5% or LESS. Needless to say the feeding frenzy subsided with the peak of the GFC and prices have pulled back. Buying at the top of any market is going to cause pain.
Conveniently Elizabeth North is the worse performer of all the Elizabeth's in 5 & 10 yr values respectively. Elizabeth Park houses 10 yr average comes back at +6.59% p.a. Change in median prices (5yrs) comes back at -4%.*note this also isn't the highest performing 'Elizabeth', just a middle range suburb for comparison.
Likewise, looking at past falls without looking at the reasons behind them may give false impressions too. Who else wished they loaded up (or loaded up more) during the GFC on CBA shares in 2009 at $28 when they'd fallen 60% from their previous high?
2FAST4U's post touched on some important points in my opinion. Socio-economic upward shift, strong population growth within the LGA, relaxed development rules with a pro-development council and the State government's shift to infill development to support the increasing population is only providing positives to the capital growth equation.
But I'm not going to bang the drum on Elizabeth all day long, there's plenty of great opportunities all across Adelaide and Australia, which everyone is free to pursue to their hearts content. Just seems a lot of investors from all over Australia keep coming to the postcode 5112, 5113, 5114 as of late to load up.
Thanks for all the constructive replies to my post above. Well, I do agree that the news is not all bad for this part of Adelaide. I guess I may even hope that things improve significantly. Still, there were many great plans for the area in the past 25-30 years...
I'm also not a big fan of volatility. Higher volatility = higher risk. You do get rewarded with a higher yield as a compensation I guess but you do need to know what you're doing and what you're buying and when... otherwise it's very easy to get burned.
NB: In general I see a lot more of interstate interest in Adelaide property these past 6-9 months
I'm also not a big fan of volatility. Higher volatility = higher risk. You do get rewarded with a higher yield as a compensation I guess but you do need to know what you're doing and what you're buying and when... otherwise it's very easy to get burned.
NB: In general I see a lot more of interstate interest in Adelaide property these past 6-9 months
Just bought around the corner from this https://au.news.yahoo.com/a/25527621/work-starts-on-munno-para-retail-centre-in-northern-adelaide/
