Adelaide can quite often be the unsung hero for property investment. It doesn’t generally make headlines on major booms, and it doesn’t often see record breaking market leaps in short time frames that we’ve seen in markets such as Sydney and Melbourne in recent years.
It does however offer ongoing consistent growth and fantastic rental yields.
There are so many reasons why we are genuinely big believers in Adelaide being a fantastic location to invest in property in 2019.
Here are 5 of the key reasons why:
1. Low Prices
The median value in Adelaide is lower than the majority of capitals in Australia whilst still offering the lifestyle afforded by a capital city. In some surrounding suburbs the entry level price is as low as $125,000 enabling most property purchasers an opportunity to get into the market. In some cities this isn’t even enough to purchase a 1 bedroom apartment.
With blue chip suburbs near the $1 Million mark also there are a vast array of options available catering for all types of property investors.
Median Values by Capital City
2. Cash Flow Positive Options
Negative gearing is a hot topic at the moment and with the upcoming federal election we can’t see it going away any time soon. With all this talk it’s easy to fall into the trap of assuming that all property is negatively geared, however this isn’t the case.
Typically the rule of thumb is the lower the price of the property the higher the chance of achieving a better rental yield. The higher the yield the better chance you have of achieving a property that is cashflow positive.
There are other factors to consider when assessing whether a property will be cashflow positive including maintenance fees, ongoing costs and vacancy rates however if you’re starting with a strong rental yield you’re giving yourself the best chance to achieve this.
3. Liveable City
According to the Economist Intelligence Unit’s 2018 rankings, Adelaide is the 10th most liveable city in the world. Surveying 140 cities worldwide, each city is assessed in key categories including stability, healthcare, culture, environment, education and infrastructure.
Adelaide has consistently been included in the reports top 10 cities worldwide in the past decade which is testament to the ongoing attraction of the city.
4. First Home Owner Grant
A unique and fantastic benefit of living in Adelaide is the opportunity to take advantage of the $15,000 first home owners grant. Many purchasers in Adelaide are taking advantage of this by building or buying new property. For people that are budget conscious it is a huge benefit and can be the difference between whether they can afford to get into the market or not.
For ‘rentvestors’ that have never lived in a property they have owned they may still be eligible for this incentive.
5. Infrastructure Spending
Infrastructure spending in the general government sector is expected to grow to $2.2 billion in 2018-19, up from $1.9 billion in 2017-18. The Government will subsequently maintain a general government investment program of around $2.1 billion per annum over the three years to 2021-22.
With major projects announced including the $615 Million Gawler Rail Line Electrification, $305 Million Main South Road duplication from Seaford to Aldinga and with recent projects completed including the $2 Billion Royal Adelaide Hospital upgrade and Tesla Battery Plant, Adelaide is constantly moving forward with innovative projects.
Want to learn about the best suburbs to buy property in Adelaide? Book a free consultation now. Feel free to send us an email at firstname.lastname@example.org or give us a call at (08) 8231 4709. Our investment team is ready to help you accomplish your financial goals and needs.
Article reproduced from YourPropertyStrategy
by David Ronson