Adelaide, Australia is known for its many festivals and sporting events, it’s food and wine, its coastlines and hills, and its large defence and manufacturing sectors. These virtual tours of Adelaide will show you and make you understand how amazing the city is. So, thinking of starting a business here would be an excellent idea! You can rest assured that you’ll be in good company knowing that the city has a strong culture of innovation and collaboration across the business community.
But for some reason, Adelaide isn’t as popular when it comes to people looking into investing in properties. Whether it gets overlooked or because other bigger Australian cities always get the headlines because of their market performance, Adelaide is in fact a good destination for property investments because it offers ongoing consistent growth and fantastic rental yields. Here are more reasons why Adelaide is a fantastic location to invest in real estate.
Affordable Real Estate
Adelaide is not as popular as Melbourne or Sydney when it comes to people abroad thinking of coming to Australia. But once you get to know what Adelaide has to offer, it can be the perfect destination especially if you’re thinking of living in Australia because of work, relocating for your family, and investing in properties.
If it’s the latter or a combination of all three that has made you decide to live in Adelaide, then it’s probably the appeal of the property price that got you interested in this particular city. If you compare it with Sydney or Melbourne, properties in Adelaide only costs only about half of what the properties in those two other cities do. The median house price in Adelaide is $473, 000 while Sydney is at $879, 000 which is almost double by comparison. So it’s no wonder those who are interested in entering the housing market to be drawn to Adelaide. And even if you prefer to rent, the prices are still significantly more affordable in Adelaide.
So whatever your reason for moving, may it be a better investment opportunity, your whole family is here, or the mild winter, the housing market won’t hurt too much. But don’t get too excited with the price tag, make sure you still inspect the house as thoroughly as you would before going ahead with the purchase. See if the layout of the house suits your needs, get all the important details, check the neighbourhood, and check for wear and tear issues. Taking 3D virtual tours can tremendously help you especially in the initial stage of house hunting as it quickly narrows your choices down. It’s always good practice to choose a property in good condition whether you plan on occupying it or you plan to rent/sell it to someone else. This will prevent potential headaches in the future and get you the most out of your money.
Cash Flow Positive
Whenever something major happens in a country, whether it’s an election or shifting political climate in general, real estate gets affected. Sometimes in a good way but other time in a bad way. And when it’s bad news some people and investors think that all property is negatively geared. When in reality the lower the price of the property the higher the chance of achieving a better rental yield. When that happens, you can also expect a better chance of achieving a property that is cashflow positive. Of course, that’s not the only factor that will ensure your cash flow, there’s also maintenance fees, ongoing costs and vacancy rates. But being able to start off with a strong rental yield already gives you a higher chance of positive cash flow.
A Good City For Work/Life Balance
Adelaide has consistently been included in the top 10 cities worldwide mainly because it’s very livable. It’s got lots of top educational institutions, plenty of work and investment opportunities because of it’s thriving industries, and it’s nice and relaxed, and the people are really friendly.
It is even considered a 15-Minute City because people can drive around and usually find a car park at the front of the place they’re arriving at. They have this expectation that that’s just something that they can do too, so it’s important to keep in mind that you buy properties that are within 15 minutes of the lifestyle drivers. Most house hunters nowadays will actually pass up on a property if it will take more than 20 minutes for them to get to work or to any establishment you typically go to on a regular basis like the grocery or restaurants.
Moreover, Adelaide is also known for having high ratings when it comes to safety, healthcare, and environmental quality which makes it such a good place to live. When you’re raising a family, those three things become a crucial consideration when looking for a place to live. This is especially true for those who are moving from one city to another. If you have to move from your home city where everything is familiar, it better be somewhere that provides those said essential factors right?
First Home Owner Grant
But it’s important to remember that. Whether you’re planning to buy a house or rent, don’t just pick the cheapest one you find. Yes, we’re all for affordability but it means nothing if the place isn’t up to standard. There are virtual tours now that allow you to check places out remotely. Matterport 3D virtual tours allow you to see the layout, the size, and the overall design of the house to see if it fits your preference.
You may be able to afford a property around the area of your choice if you do your research well. That’s why you should look into your First Home Owners Grant Eligibility in the area that you’re eyeing. Depending on which state you live in, the grants range from $7,000 to $26,000 and are usually paid at the time of settlement. For those in Adelaide, apparently, you can get a $15,000 First Home Owners Grant provided that you qualify. You need to fully understand this in order to determine a realistic plan for your savings. Whether you’re building or buying a new property, this is a unique and fantastic benefit that you can enjoy in Adelaide.
The Government Invests In Infrastructure
Another solid reason why Adelaide is a good location for real estate investments is that the general government sector maintains a general government investment program of around $2.1 billion per annum over the three years to 2021-22. In fact, from $1.9 billion in infrastructure spending in 2017-18, it has grown to $2.2 billion in 2018-19. With that kind of urban development, economic growth is sure to follow which is always good news for the real estate market and investors.
There’s also no doubt that Adelaide is constantly moving forward with innovative projects considering all the major projects it has completed in the past including the $2 billion Royal Adelaide Hospital upgrade and Tesla Battery Plant. Just November last year, major construction began on two of the biggest regional infrastructure projects ever undertaken in this state – the Port Wakefield Overpass and Highway Duplication and the Joy Baluch AM Bridge Duplication Project.