Mortgage broker reveals real estate opportunities in Adelaide

“I think what makes Adelaide really attractive is the things that make sense Sydney and Melbourne really unattractive — Adelaide has got great rental returns,” she highlighted.

“One thing that’s going to be really important moving forward, especially with borrowing changing, is cash flow… Obviously, having those better rental returns means that you’re having to pay less out of your own pocket to hold those properties long term.”

Apart from rental returns, low vacancy rates, new developments and investment in infrastructure have also allowed Adelaide to thrive amid the fluctuations in other capital city markets.

“We find that a lot of interstate investors will start to look to places like Adelaide when they can’t get the rental returns in their own cities. There has also been a lot of development and investment in infrastructure in recent times.”

Overall, Ms Schulze describes Adelaide’s growth as “slow and steady” — free from the unpredictable ups and downs that are familiar to investors in bigger capital cities such as Sydney and Melbourne.

Adelaide hotspots

For nearly two decades, Ms Schulze has benefited from the growth of her properties across Adelaide.

While the growth has not been phenomenal, the mortgage broker believes that her assets “have done what they were supposed to do” — that is, double in value over 20 years.

“Adelaide has done what it was supposed to do, and there's a lot of positive signs now that Adelaide will have a bit of growth with the property prices,” she said.

Moving forward, she remains confident that the South Australian capital will continue to yield significant returns for property investors.

“I’m putting my money on Adelaide…It could be geared up for some good growth over the next 12 to 18 months,” Ms Schulze highlighted.

The mortgage broker encouraged investors to pay attention to the infrastructure being built in and around the capital city.

At the moment, affordable entry points are available for investors and home buyers even in areas close to the central business district. Some investment properties in the city could go as low as $450,000 to $500,000.

For those whose priority is cash flow, Ms Schulze recommended looking into the other suburbs where it’s easier to acquire positively geared or neutrally geared properties.

Areas within 10 kilometres of the CBD may also benefit those looking for great land opportunities, as well as those who are keen to grow their equity through renovation, subdivision or development.

“It really depends on what they’re looking for, but there’s lots of good opportunities scattered throughout Adelaide and the metro areas,” she said.

“The only thing I’d be avoiding is apartments in the CBD…Apart from that, I think there’s a lot of good buying opportunities there.”

Tune in to Marissa Schulze's episode on The Smart Property Investment Show to know more about the wealth creation opportunities across the changing property markets in Australia.