Find out which Adelaide suburb with a $100,000 deposit ranked as one of the most attractive for investors across the country.
It’s not just the weather that’s hot in Adelaide these days. The real estate market is equally heating up, with continued growth being reported in both prices and sales.
A new study commissioned by Eventus Financial has named Flagstaff Hill among the top 20 investment locations in Australia for investors with a deposit of $100,000.
With a median home price of $627,500, the suburb ranks 18th on the national list.
The research was focused only on homes, as freestanding homes are likely to provide investors with better long-term capital gains than units.
The research found that Flagstaff Hill’s median rate of return is 4.1 percent, with tenants paying $500 a week.
The suburb’s median market duration was 28 days.
Ray White Flagstaff Hill Director James Leo is not surprised that the suburb, known for its lush, green surroundings and panoramic views of Adelaide, has been identified as an investment hotspot.
“It is a family-friendly suburb that offers rural living yet close to the city. The hiking trails and parks as well as the golf course are a big draw,” said Mr. Leo.
“Buyer interest in the area has increased since last year. Larger plots are available and buyers are not afraid to venture outside the outskirts. Overall, Flagstaff Hill is good value for money,” he said.
Eventus Financial CEO Alex Veljancevski said that despite all the rumors about real estate prices thinking outside the box, investors who think outside the box can still buy a quality investment property in a quality location with a $100,000 down payment .
“If you want to post a 20 percent deposit on a home near the center of a capital city, you need a lot more than $100,000 in deposit. But if you’re willing to be open-minded about your LTV and location, $100,000 deposit can definitely buy you a good investment property,” said Mr. Veljancevski.
“If your deposit is less than 20 percent, you’ll likely have to pay the lender’s mortgage insurance, or LMI, an insurance policy designed to protect the lender in the event of a default. That could be over $20,000, which is a lot of money.
“But if you could enter the market a few years ahead of schedule by paying LMI, if house prices went up, say, $50,000 during that time, it might seem like a bargain.”
Originally posted as an Adelaide suburb, it ranks in the top 20 hotspots list
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