Elizabeth North Has Still Got Great Potential

While every investor is looking at Western Australia, does South Australia have pockets of good investment opportunities? Well read through as I break down one such pocket that may seem good on the surface but actually isn’t….

Suburb Details:

South Australia have had certain pockets where suburbs experienced exponential growth in prices, one such such is Elizabeth North where they have experienced almost 30% growth in median house prices in the past 12 months. Just 3 years ago you could purchase a beautiful home for $250k however in today’s market you would would be looking at $400-450k. Elizabeth North is certainly in its upswing phase where investors have caught on and its slowing entering mainstream media. However SA is not as popular compared to Perth & Queensland in terms of investment.

Now for the most part there aren’t many high quality investment properties available sub 450k in this suburb. However, if you are a shrewd investor with a higher risk appetite and you do proper due diligence of the street and property you plan to purchase in Elizabeth North, I believe you can find an amazing deal with the potential of good capital growth (15-20% in the next 12 months).

But there are some things to watch out for regarding this suburb….

Key Data Metrics

Location & Infrastructure

Elizabeth North is about 40 minutes to the City CBD by car and about an hour by public transport meaning the suburb is quite far from the city CBD and is not an ideal commute for a person who works in the city. There are about major 2 highways that will take you directly to the city and there is a train station about 10 minute walk from most parts of Elizabeth North. Munno Para Shopping City is the closest major shopping Mall which contains most of your essentials including Kmart, Coles & Harvey Norman. Otherwise there is also Elizabeth City Centre which contains every other retail store a owner-occupier could possibly need.

The nearest hospital, schools and TAFE are only within about 10 minutes drive making the daily life essentials quite accessible. The airport is near the city therefore will take a similar 40 minute drive to get access. But apart from its location and infrastructure there are other important considerations you must know about Elizabeth North before you think about investing.

Other Important Factors:

Elizabeth North is located 10 minutes away from a RAAF base which can lead to increase noise levels, pollution and potentially poorer air quality (look at some of the reviews). I appreciate what the defence force does for us however when investing you should consider whether “you would want to live there” cause if you don’t then why would someone else?

Apart from that Elizabeth North the surrounding suburbs have higher crime rates compared to other parts of Adelaide. They also have higher levels of public housing which is not very appealing for someone who wants to rent long term. However if you pick the street with less social housing blocks you will be fine.

Another concern investors will have is the amount of developable land Adelaide has up north & north west. This has the potential for developers to build mass supply however the more further North you go out, the further out from the city you get, making it less desirable for owner-occupiers. People who live in Elizabeth North will want to have easy and reasonably quick access to the city. In the suburb there is almost no supply to be built keeping demand high.

Nearly half of the population (45%) in Elizabeth North are renters. This means that the suburb has a strong investor presence leading to greater competition. However the flip side is that the vacancy rate is 0.78 meaning that demand heavily outweighs supply.

Nearby Major Projects:

• Plans To Build 3500 New Homes In Elizabeth South & Smithfield

• 23,700 New Homes For South Australians. Residential land release and rezoning

Example Property:

_{*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.}

Pro’s Of Investing In Elizabeth North

• Showed strong growth over the past 12 months.

• Days on market is less than 40 days indicating a healthy market.

• Strong online search interest indicating people are actively watching this space.

• Undersupply and a lack of future supply can be built in the suburb.

Con’s Of Investing In Elizabeth North

• Properties are close to a RAAF Base → Noise & Air Pollution

• Poor reputation as a place that owner-occupiers want to live in.

• Higher renter to owner ratio, quite a few investors own property.

• Crime is high compared to other parts of SA, it isn’t ideal for liveability.

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_{Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.}