The city or the suburbs? It’s one of the most common questions we are asked as real estate agents by potential investment property owners. Adelaide is blessed with sprawling suburbs that boast ample properties at affordable prices, but now the city is booming with construction of apartments that attract professional renters. So if you’re looking to purchase an investment property in Adelaide, here’s some food for thought about where might be best for you to buy.
Investment properties can serve two purposes; for you to live in yourself until the time comes to sell up, or to rent out. When deciding where you want to purchase a house, unit or apartment, it’s important to decide what your intentions with the property are. If you want to live in your investment property does the suburbs or the Adelaide CBD appeal more to you? Do you have a family and need an ample sized home that you can sell once the kids have flown the nest? Then consider the suburbs, as larger houses with gardens are easier to come by. Or maybe you are a young professional and wish to live in an investment property close to the city. Personal circumstances play into investment property searching and should not be ignored when weighing up whether the city or the suburbs suits your lifestyle.
However, if you are planning on purchasing a property to lease out, then there are a few other things you may wish to consider, depending on your price range. The demand for properties in some suburbs has slowed greatly, and are no longer attracting the prices that they were three to four years ago. This is great news if you wish to buy a house at a cheap price, but then consider that you may have difficulty in leasing the house out, or may not get the return you were expecting from rent. This is not the case everywhere, and your real estate agent will be able to advise you more in depth about particular Adelaide suburbs. However, this housing price slump in the suburbs cannot last forever, so you may reap the rewards when the time comes to sell your investment property as house prices start to increase again.
Meanwhile in the Adelaide CBD, new apartments springing up along nearly every major road. These investment properties are abundant, and there are some great incentives for buyers including stamp duty reductions. City apartments attract many different kinds of renters, and are often sought after, but with such a surge of new properties flooding the market, it may have an impact on the rent price you can ask for. Of course, there will always be new apartments being built in the city, but the price reduction incentives will not always be around.
When looking for an investment property, there are so many considerations that come in to play. Your real estate agent can help you weigh up your circumstances to find an investment property that works for you.