New data reveals where you should invest in SA right now

Looking to buy an investment property?

New PropTrack data has highlighted the best SA suburbs and towns in which to purchase. And some of them might surprise you.

According to the data, the top suburb would-be investors looking for a house should target is St Clair.

The median house price here is $715,000, with homes selling on average in 15 days.

House prices have increased by 28 per cent over the past 12 months and currently deliver a rental yield of 15 per cent.

Evanston, in Adelaide’s north was ranked number two, with a median-priced house at $595,000 increasing by 24 per cent over the past 12 months, delivering 4.9 per cent rental yield and selling within 22 days.

Elizabeth Grove, Salisbury North and Seaford Heights claimed spots three through five respectively.

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Those seeking units or apartments are advised to target Salisbury, again in Adelaide’s north.

Here a $440,000 home, which has increased by 33 per cent over the past year delivers 5.1 per cent in rental yield and sells within 17 days.

Brooklyn Park, North Adelaide, New Port and Ascot Park units and apartments rounded out the top five.

Investor Julian Stevens outside his New Port apartment investment. Picture: Ben Clark

Real estate agent Julian Stevens, 54, bought an apartment in New Port as an investment in 2009 and said the property has performed strongly for him.

“I was looking for an investment, it was what I could afford at the time, and I saw great potential with the renewing waterfront development, although it took a while for the potential to take off down there,” he said.

“It’s been really good.

“The rental yield is strong and I’ve had three or four tenants over that time, but if I ever have a tenant leave, it doesn’t take long to find another one, and the rent has ticked up over that time too,” he said.

The data analysed and compared a suburb’s median sale price, 12-month price capital appreciation, rental yield and days on market.

REA Group senior economist Angus Moore pictured

REA Group senior economist Angus Moore said by and large, the investor hotspots across the country were in either regional or outer suburban areas.

“Regional areas, and to some extent, outer suburbs, often carry higher rental yields,” he said.

“And two, those areas have also seen stronger price growth over the past 12 months, but you could even extend that back to the past five years.”

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Mr Moore said the report highlighted areas of strong capital growth, but said while past performance was a good indicator of future growth, it did not guarantee it.

“Investors do need to go and dig in and understand the area and what’s been driving that, to figure out whether it’s going to continue, because locally specific factors are going to be very important, such as new builds, whether people are moving to the area from other states, big construction projects, changes in local labour markets and employers.”

Blackfish’s Leah Busby. Pic: Supplied.

Blackfish mortgage broker Leah Busby said if buyers were thinking of starting an investment portfolio, the time to do it was now.

“Home prices continue to rise, and the reality is everyone we know, including ourselves, you know we always wish we’d bought the property earlier. So we’re certainly saying to clients, yeah look if you can get to the market, get into the market.

“You need to get in, the prices, what the price is, they’re not creating more land. So you’ve just got to decide on that area, knowing what your strategy is with buying that investment property, and just backing yourself, understanding the numbers and making it happen.”

– With Tim McIntyre.

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