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were between five per cent and eight per
cent per annum.
“Elizabeth has always presented buyers
with opportunity, great entry points for
investors looking for a good rental return –
an average of seven per cent during 2013
and a median sales price in the area of
$171,000 during 2013.
“The challenges are the type of
dwellings and age. Buyers may need
to factor in maintenance and possible
renovations during their hold period. This
isn’t the case with all properties in the
area but certainly for most.”
Piteo says buyers in Elizabeth will be
rewarded by good infrastructure, train and
bus services, a major shopping complex,
schools and higher education all within a
45-minute commute to Adelaide.
Jeff Smithers, valuer with Propell
National Valuers, says housing prices are
low in most parts of Elizabeth, but returns
are high despite very slow capital growth.
“For example, a three-bedroom, one-
bathroom, semi-detached maisonette
on a 600-square-metre lot and 80 square
metres in size, built in the 1960s and in
fair condition could achieve a sale price
between $130,000 to $150,000.
“It could rent for $200 to $220 per week.
Of course the downside is poor quality
tenants and maintenance issues eroding
your returns,” he warns.
“Properties near to the main shopping
area of Elizabeth City Centre and the Lyell
McEwin Hospital are popular,” he says.
Smithers says there’s also a high
rental demand from single parents, the
unemployed and working class families
on one income, making demand for clean
properties with good security, fences,
secure car parking and a preference for
properties that allow pets.
He also suggests investors ensure
properties are within close proximity to
good public transport, schools and shops.
There’s a large supply of all types of
housing stock, Smithers says, with
units tending to be tightly held by the
“Buyers want a bang for their buck so
advertised prices need to be spot on
for a sale to occur. Prices $10,000 over
market value could sit there for nine to 12
months with little interest.”
He says entry-level prices for a 1960s
semi-detached ex-housing trust property
would likely achieve $120,000 to
$150,000, a 1960s freestanding dwelling
between $180,000 and $200,000, a new
small villa home in Elizabeth’s peripheral
suburbs between $260,000 and $320,000
and a new good quality four-bedroom
home between $350,000 and $400,000.
Smithers says overall he’d recommend
Elizabeth due to the potential for
“There’s a low vacancy rate – normally
less than two per cent, plus larger
allotments with good development
potential, only 30 kilometres from
Adelaide CBD and 10 minutes
drive south to Gawler and the
He suggests investors keep an eye on
expansions occurring in suburbs such as
Andrews Farm, Munno Para and Penfield.
“These are very affordable areas
trying to attract younger family buyers.
They have new three or four-bedroom,
two-bathroom, double-garage homes
on 450-square-metre lots – selling for
between $320,000 to $350,000. These
suburbs have improved facilities such
as schools, transport hubs and local
Smithers suggest buyers consider
the socio-economic factors of where
they’re buying such as high crime, poor
quality housing stock, poor maintenance
“Davoren Park would be one of the
worst areas with particularly poor
housing stock and a very high number of
rental properties,” he says.
There’s a push to improve housing
standards in Elizabeth but it may take
some time to have an impact, he adds.
“The Playford Alive development is
increasing housing standards in the
area but will take some years to see
the benefits and the recently opened
Northern Expressway has provided good
transport links to the Elizabeth area from
both the north and south.”
Smithers says there’s good
development potential for small time
developers. He suggests investors
could purchase older property on a
1000-square-metre allotment for between
$180,000 and $200,000, demolish the
existing dwelling and establish three
new courtyard dwellings for resale
A long-term plan
With an impressive 19 investment
properties under their belt, this couple from
South Australia plan on holding every single
one of them.
Mark (not his real name) and his wife, own
five investment properties in the Adelaide
suburb of Elizabeth – all of them semi-
“Our strategy is to buy and hold,” he says.
“We have never sold a property.”
Mark’s latest purchase was two semi-
detached houses on one title for $276,000.
“The semi-detached houses in Elizabeth
East were purchased for $138,000 each
($276,000 in total) and the other three
semi-detached properties in Elizabeth were
bought for $130,000 each,” he says.
“We picked the houses in Elizabeth
because they offer a very good rental
return and were already renovated ready to
“The prices in the Elizabeth area have
gone up substantially a few years ago, but
I don’t expect any significant change in the
“The rental demand is very strong and
rents have been going up continuously over
the last two years.”
Mark says his latest two purchases bring
in an impressive annual rental return of
$11,180 and $12,480 respectively.
“We don’t rent to students, we prefer long-
term tenants. Our tenants are mainly young
couples and singles,” Mark says.
“We’re different to other investors as
we don’t use agents and manage all our
“We maintain a good relationship with our
tenants and attend to any maintenance
“Our strategy has worked well for us and
enabled us to acquire the 19 properties in
just seven years.”
Mark says his Elizabeth properties are cash
flow positive and support the negatively
geared properties he owns in St Peters,
North Adelaide, Brompton and Thebarton.
Purchase date: December 2013
Purchase price: $276,000
Strategy: Buy and hold
Properties: 19 in total, 5 in Elizabeth
Elizabeth East property
THE STATES // SA
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