Where in SA mum and dad investors should be buying

You don’t need a huge surplus of cash to invest in property. Here are the best suburbs to buy your first rental on a budget and expert tips on which suburbs should surge in value in the future.

Think you need a huge surplus of cash to become a property investor?

New data by Custodian shows in many instances mum and dad investors can do well for themselves, with South Australia tipped as a great place to make your riches in the coming years.

Custodian managing director James Fitzgerald said people could start their investment journey with a much lower outlay than they might think.

James Fitzgerald of Custodian. Pic: Supplied.

“You don’t have to be rich to invest in property,” he said.

“You just need to have your finances organised and do your research.

“While it’s true property prices have started to rise again, that doesn’t mean would-be investors are priced out of the market, there are still plenty of locations where mum and dad investors can buy something within their budget which will deliver solid returns.”

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And Adelaide’s northern suburbs are where they should be looking to buy, Mr Fitzgerald says.

Mr Fitzgerald identified five areas across Adelaide he said were good investments now and in the future, where he expects land prices to double by 2031, with Munno Para West and Angle Vale taking out the top spot.

The region has a median land price of $200,000, a median house price and a rental yield of 5.7 per cent. Custodian data predicts home prices will rise 49.8 per cent between 2021 and 2031.

Mr Fitzgerald said the area had a lot going for it.

“It is close to the RAAF Base in Edinburgh which is home to 3500 Army and Air force personnel,” he said.

“It has a strong industrial sector including transport and logistics, all providing ample job opportunities.

“According to The City of Playford Council, seven new residents move to the region every day.”

The area of Virginia – Waterloo Corner – Dry Creek North was also singled out, with a projected value growth of 34.8 per cent, and Gawler – South and Craigmore – Blakeview were also tipped for value surges of 28.7 per cent and 25.7 per cent respectively.

Mount Barker, with a median land price of $280,000, also made the top five, with a projected 26.9 per cent growth.

Mr Fitzgerald said SA had a lot to offer.

“The South Australian Government has transformed Adelaide into a hub for jobs in renewable energy, healthcare, education and tourism; all of which are among Australia’s biggest employers.

McLaren Vale, Port Adelaide, Hackham-Onkaparinga Hills, Aldinga and Strathalbyn were all identified as great affordable long-term investment sites for mum and dad investors, with anticipated value growths ranging between 17.5 per cent and 20.4 per cent.

Mike Lao of Edge Realty. Supplied

Edge Realty’s Mike Lao said Adelaide’s northern suburbs had long been popular with investors.

“A lot of people have bought house and land packages out that way – it’s affordable, rental yields are strong and vacancy rates have always been low, it makes them a good investment.

“Plus they’re seeing good capital growth too, which they haven’t always done – I sold a brand new build in Munno Para West in June 2015 for $190,000 and sold it again in August for $400,000.

“A lot of people buy out here using the equity in their current home to try and get their family ahead and hopefully one day maybe pass it on to their kids.”

8A Peerless Road, Munno Para West – its value more than doubled in eight years. Supplied