Thinking of investing in Adelaide? Wondering where you can get a good property with a good return in Adelaide?
No doubt, Adelaide is one of the most affordable cities you can find in Australia. If you’re after liveability – this is the city for you! It offers a relaxed lifestyle, with great food and entertainment venues, and flourishing arts and culture settings.
Adelaide has managed to escape much of what Melbourne and Sydney has experienced in terms of “property market crashing.” As it has more affordable housing options and even reduced interest rates versus the rest of Australia’s capital cities, and, generally a stable market.
Adelaide has what it takes for a comparatively smaller city and frail economy. With relatively cheaper properties more worthy of your cash — picking the right location to purchase one to invest here is extremely a very smart move.
Advantages of Having Investment Properties in Adelaide
At present, property prices in Adelaide haven’t been rising in comparable to the high prices that we’re seeing in Australia’s other cities. Because of this, Adelaide is clearly delayed for major price increase values. If you’d be investing in Adelaide today – it will be both beneficial to you, short-term and in the long term. On the upfront – you can get reasonable rates on property price and rentals, and within 5 to 10 years, you will be in a good position as the property market continues going upwards.
If there’s one thing – Adelaide properties have something great for investors. They’re generally steadfast and dependable. The rental yields and capital growth are normally more moderate than on the east coast, thereby less unpredictable. Adelaide has been able to ensure perennial market surprises, thus, property investing in this city is safe and secure.
What’s unique with Adelaide?
Slow population growth
Adelaide is ranked as the country’s 5th largest city, with population of 31,820 at 2021. A forecast for 2041 is approximately 50,614. Greater Adelaide populace and its nearby suburbs is approximately 1,345,000 – a mere 0.67% rise from last year (2020).
Historical data shows the city’s growth in population has slowed down as compared with the other capital cities. Note that its median age now is 39 which means its population is the 2nd oldest after Tasmania in the median age category. Though there are continuous government-initiated measures which were launched to encourage more foreign students and migrants to live in this city. Recent data show that this move has been advantageous for the city, resulting to stronger economy, formidable prices in properties and a reduced median age to balance well the demographic distribution. Consequently, the lessened activities on migration and international travel because of the COVID-19 pandemic have slowed down population growth – but it is expected to recover strongly in due time.
Warm and Friendly City Design
The city of Adelaide is special for its welcoming design and layout. The CBD, in fact, is planned in a grid. It’s surrounded by Adelaide’s Parklands’ green wide spaces — all conceptualised by Colonel Light.
All five huge CBD’s public spaces are called Light’s Vision. The centre is popularly known as the Victoria Square which hosts a number of short-term festivals and public happenings. It also provides a big relaxing lunch setting overshadowed by the historic structures around the square.
The rest are the popular Hurtle, Hindmarsh, Light and Whitmore Squares – all in the heart of the city’s four corners. With the heavily-guarded Parklands, this layout implies that you’re really never far-off from a green, calm place to have a peaceful breather.
The cultural scene of Adelaide is incomparable and something to watch out for. In summertime where festivals are abounding – most streets are bright, and you will easily give in to the rhythm and beat of the famous fests like Adelaide Fringe Festival which comes in second in terms of popularity and size of Edinburgh. Another big crowd-drawer is WOMAdelaide, while the Clipsal 500 gathers the car aficionados (and their families) together.
There’s so much to do and explore throughout the year with a flourishing wine and trade business that Adelaide is noted for, especially since it has been popular for its artisan cheese, gorgeous juicy olives, smoked meat, and of course, fine wine. For one, the Adelaide Festival Centre has been playing a good host for on-the road plays, musicals and opera as much as the grand and impressive art showcase exhibits at the Art Gallery of SA.
The key infrastructure projects suggest above average demands in property markets locally. Astute property investors recognize that many infrastructure developments under way often translate to stronger capital growth more so if such developments are finally completed.
For instance, in SA: the Queen Elizabeth Hospital’s remodelling has created employment opportunities and progressed the health care structure.
There are also still some ongoing major projects meant to achieve road linkages with outer suburbs, as well as the Gawler of the north and Finders Link activity of the south. Similar efforts being done for the upkeep of a refreshing and calming place to reside in, as manifested by all the visible green pathways and bikeways in the city’s CBD.
Economic Robust Conditions
The Greater Adelaide region comprises of 23 local government units, including the city of Adelaide as well as the regional centres of Gawler and Mount Barke. It is considered as the ‘powerful machine’ that pushes the economy of South Australia. There have been considerable government investments in education, clean energy and renewables in the region. To add, there’s also a robust food and wine industry, with a number of popular wine regions across Coonawarra, Barossa Valley and McLaren Vale.
Latest news updates from ABC foresee South Australian to be a key player in revitalizing the country’s economy as a result of the prevailing COVID-19 situation. The reason is that its economy is not so much dependent on industries which have been extremely impacted by the difficult pandemic, such as the tourism and hospitality industries. Though while significant industries like farming and mining have remained strong, Adelaide is not totally free of economic problems. Its unemployment is foreseen to increase by 10% in 2021 and may remain high in 2022.
What to consider when buying an Adelaide Investment Property?
Location is a Priority
Your borrowing capacity will play a role in your decision to choose the locations for your property investments. Buy the properties which are ideal and strategic – those near the city centre. This means you can expect greater rental income and faster property appreciation. But for those who do not have enough cash, they can still invest in profitable properties located in the inner northern suburbs.
Check the Property
If you have chosen the ideal location for your investment, it will help if you can go and check the property so you know if the place can be rented out immediately. It is recommended that you do not go for properties requiring general renovation (unless you’re quite skilled at it). Before you even get any returns, the structural fixes/activities can be costly to begin with.
Cash is king! – Calculate your cash flow
We know that property investing is a tested route to long-term wealth creation. Which means, you may be holding it for a long term, thus, you need to ensure that you can offer to repay your mortgage over the long period of time you are holding it. Financial pressures may result to untimely divestment of the property. You will of course not want to sell your property until you are good and poised to sell.
Generally, owning an investment property gets less difficult to maintain and payoff over time. The reason being you receive rent and get tax deductions on several of the related expenses associated with owning, plus rents tend to increase the same way as your own income over time.
MUST HAVE: A Mixture of Capital Growth and Rental Yield Properties
When investing in Adelaide, consider having a good mix of both appreciation and rental properties in your portfolio, if you can. Having a good mix will give you the position to have a working cash flow – capable of using it to pay off your mortgage.
As the rental properties denote a smaller upfront cost and will earn revenue streams instantly, they will not appreciate much unfortunately as compared to such properties nearer the city centre. The latter will cost you more but will eventually earn for you more money. When all the properties you buy for investment are likely only to appreciate continually but draw lesser rental returns, you may find it hard to service all your loans.
Final Takeaways: Best Suburbs in Adelaide for Investment
So far, Adelaide has kept resilient with the CoVid-19’s property market slump and most probably will be that for a while. Adelaide’s property market updates show it was the least in all of Australia’s cities to have variations in their investment market and international migrations, which have kept it stable and strong.
In the meantime, as tenants started appreciating the value of having more spaces in their homes, the demand for units slowed down. If this pattern and lifestyle choices continue, houses in the regional suburbs are well positioned to be bestsellers in the future.
In conclusion, South Australia property investors can benefit high capital growth rates in the long run with the continuing increasing desirability of Adelaide, being affordable and having a lifestyle charm.
Ultimately, where is the best place to buy a property in Adelaide? What are the best suburbs to invest in Adelaide? Where can you buy property for below $600,000 in Adelaide with a Rental Yield of 6% and above? These are the most common questions property investors ask and it involves a lot of time researching to find the answer.
The good news is, we’ve already done the hard work for you. Within seconds, you’ll be able to identify which metropolitan suburb you should buy a property based on your budget.
By just filtering and sorting, you’ll be able to identify which suburbs in Adelaide and the rest of South Australia
- Have a median price that will suit the amount you’re willing to invest, especially the suburbs with a median of $600k and below
- Have More than 4% Annual Capital Growth
- Have More than 6% Rental Yield
- Have Less than 3% Vacancy Rate
It is the most comprehensive investment location data of all 15,000+ suburbs in Australia – with linked state, suburb, postcode, average annual growth, median property value, median rent, gross rental yield, vacancy rate, population, gross weekly income, median monthly mortgage repayments and more. It’s perfect for property investors, buyer’s agent, real estate agents, property managers, mortgage brokers, valuers, and even property developers.
Once you’ve identified which suburbs in Adelaide are the best to invest in, don’t forget to do your due diligence and check if the numbers stack up!
Check out our All-in-One Investment Property Calculator
The most simple and easy to use tool to calculate Rental Yield. It gives you a quick way to compare returns on different investment properties (or investments). It’s a Rental Yield Calculator, Mortgage or Homeloan Calculator, Cashflow Calculator, Purchase Cost Calculator, that also calculates Forecasted Property Value based on Capital Growth. It’s perfect for property investors, buyer’s agents, and real estate agents.