Despite COVID-19, the end of 2020 was an amazing year for the Adelaide property market. By December 2020, Adelaide’s median house price skyrocketed to a record high of $510,000. And with 11% fewer listings over the last twelve months, Adelaide has become one of the hottest and most sought after cities to invest in.
Although considered a small city, Adelaide, in fact, has the most suburbs than any other State. Whether you’re a seasoned Adelaide landlord maintaining a string of properties, or a first-time investor, it’s important to keep abreast of the latest market trends and rates so you can make an informed decision on your next property investment.
Thankfully, Salvan Property Management are Adelaide property managers that specialise in tailoring solutions to help property investors achieve their financial goals with a stress-free, hands-on approach. If you’re new to property investment, you don’t have to endure bad experiences. We’re here to help you from start to finish.
So which are the best suburbs in Adelaide to invest in for 2021? Read on to discover the best Adelaide suburbs to invest in.
What to look for in an investment property in Adelaide
Location. Location. Location! A good location is an essential component to getting a profitable return on your investment. It will determine the amount of rent you charge, the quality of your tenant, and your vacancy rate.
Generally properties close to the city, business district or universities make good investments. For potential tenants, central locations are often in most demand.
Looking for an Adelaide Property Manager? Get in touch with Natalie HERE.
Some investment properties require more maintenance than others. The properties that are easy to keep and maintain will be the ones that attract stable, long-term tenants. An apartment or unit is spacious enough to feel homely but is also low maintenance. Investing in properties with a private yard or balcony may increase your return on investment.
Is it profitable?
Make a financial strategy before you buy. This should summarise your financial goals and the actions you need to take over the next three to five years to achieve them.
Start by accessing where you are financially now. What are the risks of buying an investment property? What resources do you have? Then decide where you would like to be in the future, based on the risks and resources you have identified.
Finally, make a plan on what actions you’ll need to take each year to finance your strategy. You may need to increase your funds, build up your savings or apply for loans.
And remember, you’ll need to cover more than just the mortgage. Factor in maintenance and operation costs, as well as any taxes.
Best Adelaide suburbs to invest in
Walkerville has a reputation for being an affluent suburb with higher-priced properties. In 2020, the median price was over $1.4 million for houses and $450,000 for units. So what makes Walkerville the number one choice for Adelaide investors?
- It’s five kilometres from the Adelaide CBD.
- A fitness centre, supermarket and upmarket restaurants are all within a five-minute drive
- Plenty of community and sporting clubs within a one-kilometre radius
- A vacancy rate as low as 1%
Featured on realestate.com.au’s list of top 10 growth suburbs in Adelaide, this leafy area is in hot demand for renters. Choose a spacious, practical three-bedroom home for a stable investment property.
Just five kilometres from Adelaide’s CBD, Glenunga offers everything a renting family could want. With its proximity to public schools, child care facilities and playgrounds, you’re sure to find reliable tenants in no time.
Like Walkerville, Glenunga’s average house prices are on the higher side, with a 7.1% five-year growth rate. If you do invest in a house in Glenunga, choose a tidy character home with some land components.
However, unit prices are much lower, selling for an average price of $405,000. If a house is out of your price range, a unit will still be a good investment.
If you’re looking for an investment property away from Adelaide city, consider Blackwood. It may be 14 kilometres away from the CBD, but it has one of the lowest vacancy rates of all Adelaide suburbs at just 0.1%.
Not only is Blackwood a more affordable suburb to invest in, but the price of rent has increased by 14% year-over-year (YOY). It’s also a family-friendly spot with schools and daycare centres less than 500 metres away.
The average house price in this quiet suburb is a more obtainable $653,000 and $365,000 for units.
Surrounded by native gum trees and just six kilometres from the beach, Happy Valley offers larger houses with land for more affordable prices.
Homes in Happy Valley are being sold for an average price of $468,000, with a rental income of $395 per week. And while units are even more obtainable at approximately $237,000, they’re not in high demand by renters. Resist the temptation and stick with the higher-priced houses.
29% of people who live in Happy Valley are older couples or families. Retirees have a lower turnover rate than younger people at just 5%. They also tend to lead quieter lifestyles, meaning that your investment property will be safe from damage.
For those wanting to invest in low-capital holiday rentals, Port Elliot is the place to be. Whilst technically not in Adelaide, this coastal suburb deserves its own special mention.
Restaurants, cafes and pubs might be two kilometres away, but Port Elliot’s scenic views and country lifestyle make for the perfect holiday rental.
RealEstate.com.au called Port Elliot one of the best suburbs to invest in in South Australia. Why? Because in the last year, it has grown by 9.8%, with a 6.2% five-year growth rate for houses. And when you consider that you can snatch up a property for as low as $485,000, that’s some great ROI.
Natalie Salvati, Principal of Salvan Property Management, is a registered Real Estate Agent (RLA 276287) with over 20 years of experience in the property management market. She specialises in looking after metropolitan Adelaide landlords, or as we like to say, ‘property investors’. If you’re looking for an Adelaide property manager, get in touch with Natalie HERE.