Defence plan, new freeway, boosts high-yielding Elizabeth

15 November 2006:

Four South Australian defence force bases may be closed and the units relocated to Edinburgh Defence Precinct. The South Australia State Government has revealed the route for its new Northern Expressway.

These are the kind of news items that should make property investors sit up and take notice. Both benefit the highly-promising property investment precinct around Elizabeth in Adelaide's north.

The Edinburgh precinct is in Adelaide’s north and is already a huge complex. Clearly it’s been earmarked by the Federal Government for bigger things, with the previously-announced plan to relocate a major Defence Force unit there from Sydney – which would involve 1,200 troops and generate $100 million a year for the SA economy.

Then in early August the Defence Department announced the plan to close four SA bases and move units to Edinburgh.

The significance for property investors is that the Edinburgh is a neighbour of the Elizabeth suburban area. This is an area I believe is worth considering by investors interested in good rental yields, affordable houses and lots of potential for growth.

Investment adviser and author of good books on property investment, Margaret Lomas, is also a strong advocate of this area and has bought a number of properties there herself. Houses can be bought well below $200,000 and rented at yields better than 6%.

The major expansion plans the Edinburgh Defence Precinct provide another significant boost to that area’s economy and will bring large numbers of new people into the area – people who will need homes.

Before investors jump in and buy, it’s important to point out that the Defence Force move is a plan only and is not confirmed. But I cite it as a prime example of the kind of news item diligent investors should be watching for – as it may lead to growth in the local property industry and therefore an opportunity to buy well for both good returns and good capital growth.

Meanwhile, the State Government's announcement in November 2006 of the route for its $550 million Northern Expressway is a further boost to this area.

The new road will run for 23km from Port Wakefield Road past Penfield, MacDonald Park, Andrews Farm and Munno Para Downs through to Gawler.

The four-lane freeway is designed to improve links from Port Adelaide to the Sturt Highway, but is also good news to Elizabeth because it improves access in the area.

It is scheduled to start construction in 2008 for completion in 2011.

Investors can read more about the Elizabeth precinct in northern Adelaide in the National Top 10 High Returns Hotspots report, now selling on this website.