There seems to be a fascination with clients looking to buy NRAS properties as close to the city as possible.
Whilst there has always been a general acceptance that closer to the city potentially means greater capital gain, that doesn’t necessarily always ring true.
There is a change in people’s habits and with the urban sprawl in Adelaide – less people are having to come to the city. Communities provide all the facilities families need, including major shopping centres, entertainment venues, schools, hospitals etc.
It pays to remember that part of the objective for the government is to provide NRAS housing in communities that meet the criteria of good local infrastructure, accommodating a potential swell in population in the coming years.
This of course means that tenancy demand will be high and it’s no coincidence that the allocated NRAS areas are generally where we have seen government spending in terms of transport, schools and the like.
Obviously every client has their own opinion on the next suburb “hotspot” but we also think clients need to keep in mind the nature and true advantage of NRAS in South Australia – namely good affordable investment housing specifically designed to meet affordable rental demands for low to middle income earners in high density suburbs.
Munno Para is a classic example of a low cost suburb with increasing rental demand that can realize great capital growth.
February’s edition of Smart Property Investor listed Munno Para as having the highest median housing price increase of any suburb over the last 10 years – nationally.
Everyone has their opinion on “Northern Corridor” stock in SA, but the reality is that there is still a high rental demand and the State Government has contributed massive amounts of funding into these areas in recent years – to accommodate the increase in population growth and rental demand.
It’s little wonder “eastern seaboard investors” are buying up this stock sight unseen.
The savvy investor will always look at the potential of the areas with key elements in mind – and worry less about how close the property is to Adelaide oval.