JULY 29, 2019
Three important considerations before buying in Adelaide
Adelaide, or Radelaide as it’s known to locals, is an Aussie city continuing to impress. Other states may diss the city, saying it’s too quiet or that it’s a pretty boring place that young people are constantly involved in a scramble to evacuate.
But there’s a reason why Adelaide is consistently ranked amongst the world’s most liveable cities. It is the “20 minute city”, where one can jump in their car and be at the beach, the city or the hills within a half hour’s drive.
Adelaide’s house prices are more affordable than other states, too. With fantastic median prices as opposed to other major cities like Melbourne, Sydney and Canberra, it’s easy to see why Adelaide is a top place to buy.
Precise building inspections adelaide, the go-to team, fully understands why the city is a great place to invest. But this being said, there are some things to remember when buying in this weird and wacky city.
Remember the following, prospective buyers.
Whilst Adelaide’s house prices are greatly affordable compared to other states, it does cop it when it comes to stamp duty.
Alex Ouwens, president of the Real Estate Institute of SA and Ouwens Casserly Real Estate Director, says that the stamp duty fee ranges between 4 to 5 per cent on a property’s price. As such, if you are purchasing a $400,000 house, you need an extra $20,000 to cover the tax.
“The problem with stamp duty is that the State Government hasn’t adjusted it down as prices have gone up,” Mr Ouwens said.
“Since it was first introduced as a tax property prices have gone up 10 fold but stamp duty has gone up 40 fold.”
“The higher the property price, the more you pay in stamp duty.”
Mr Ouwens said stamp duty causes problems across Australia, but they are “slightly higher” in Adelaide.
Adelaide provides the best return on investment than any other mainland capital city, Mr Ouwens says. The ROI on properties sits at about 4 per cent, compared with Melbourne or Sydney’s 2 to 3 per cent.
“A lot of investors from Melbourne and Sydney are coming over to invest in Adelaide because of that 4 per cent return,” Mr Ouwens said.
“From an investor’s point of view there are properties in blue-chip suburbs that will still get you that good return on your investment.”
Everyone who lives in the state knows that South Australians love to entertain. The properties reflect this love.
“Adelaide is known for its festivals and entertainment and given that Adelaide is a horizontal city spanning geographically, it’s always been desired to have a bit of a backyard and an open-plan area,” Mr Ouwens said.
He also stated that there has been a “resurgence” in requests for homes containing swimming pools.
Orientation-wise, homes with a northern aspect at the rear and south-facing front are most desired, “to make the most out of the sun coming into back living area of the home,” said Mr Ouwens.
Adelaide is renowned for its turn-of-the-century architecture, dated from the 19th and 20th centuries. The most in-demand styles by investors are maisonettes and bluestone cottages in the $400,000 to $700,000 bracket, Mr Ouwens said. He also said double-brick homes from the 1960s and 70s were popular as they make for good renovation properties.
Lead Image: Wikicommons
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