When it comes to buying into the great array of rentals in Adelaide, you'll likely have the long-term financial benefits in mind. Rental yield is an important part of owning and maintaining an investment property, but capital growth presents a great opportunity to make a profit at sale time.
The CoreLogic RP Data quarterly Pain and Gain report for December 2014 has some potentially promising news for vendors and investors in the South Australian capital. The results show that the proportion of properties that were sold at a gross loss has plummeted to its lowest level since the 12 months to November 2011. Only 8.9 per cent of Adelaide properties made a loss at sale over the December quarter, which is down from 11.9 per cent in the same time a year earlier.
Auspiciously, the largest proportion – 28.5 per cent – of properties made a profit of 100 per cent or more at resale. This presents some great opportunities for investment in the Adelaide market. The report also shed some light on which council areas recorded the most profit-making sales. For example, property in Burnside and Prospect performed particularly strongly for sellers, with 93.6 per cent and 92.2 per cent of homes making a sizeable sum respectively.
On the other hand, the Adelaide council region saw 12.3 properties make a loss at resale – but this doesn't necessarily mean you should strike it off the investment list. It might require a change in investment strategy, or relying more heavily on rental yield to line your coffers.
Before you make a final decision about your investment, seek advice from the local real estate professionals at Ray White. The team can do a lot of the rental legwork on your behalf, making the investment journey much smoother.