Recent articles have included; property experts announcing that the property market is outperforming their expectations in 2017; just this week, the Victorian state government announced they are abolishing Stamp Duty for first home buyers purchasing a property up to $600,000; and locally that the demand for homes in South Australia increased by 7.1 per cent over the past month (and 10 per cent over the past 12 months).
With so much going on, it's no surprise property articles are appearing in the media almost weekly. With 'Top 10 lists' and 'Hot Spots', everyone wants to keep their finger on the pulse with what the market is doing, and where they should be buying.
But don't be misled.
One of the latest property headlines to hit the media was 'Adelaide Investment Hot Spots', highlighting the top 10 'most in-demand' suburbs in Adelaide. These include (in order) Redwood Park, Melrose Park, Marino, Modbury Heights, Morphettville, Reynella, Dulwich, Sheidow Park, Everard Park and Marion.
As a current resident of Dulwich, I'm very pleased with the results! But with my investor hat on, they seem very varied.
It's got me thinking, what are these lists actually telling us? And what else should investors ask their agent if they are looking to rely on these lists?
Essential questions are - what are the rental returns in each suburb? Are house prices on the rise? And most importantly... What was the sample size? Results can easily be skewed when there is little data available.
At Toop&Toop we are out in the market every day. With our seven offices and property management team of 35, we see things first-hand, and well before data appears in a Top 10 list.
So what are we finding?
The market is strong right now. A number of properties (just this week) leased after their first open inspection from the coast through to the inner east and inner west with optimal rents being achieved. Our vacancy rate remains at an all-time low (and has been for some time) and there is little property available to rent. As a result, many tenants are opting to renew their lease to stay in the property so these homes are not getting onto the rental market, adding to the already tight market conditions. These insights are first hand, live from the field... but are not picked up by the property reports or Top 10 lists.
With affordability as our biggest drawcard and impressive yields, Adelaide remains the capital city of choice for many investors, both locally and nationally.
If you are looking to purchase an investment property, now is a great time to be entering the Adelaide market. But before you do, make sure you know what's happening. If you want the full picture, give our team a call today! We love talking property and are here to help you find your next investment.