When looking to invest in real estate two key questions are 'Can I afford to buy in this area?' and 'Will this area grow in value?'

With its current affordability and the dramatic increase in mining industry development, more and more investors are seeking to buy in South Australia.While the whole state will enjoy this prosperity over the next few years some areas are predicted to benefit particularly well. One such area that I believe is currently affordable and will also increase faster than the national average is Ethelton.

Approximately 1,300 people live in Ethelton.In relation to the rest of Australia, it is a suburb that houses an older population as evidenced by differences in median age (39 years to 37 years). There are a high proportion of residents born in Australia living in Ethelton, 76% compared to the Australian average of 71%.There are more single parent families (29% to 16%) and less families with kids (32% to 45%) in Ethelton than the rest of Australia.The most common religious affiliation is no religion.The median household weekly income is only $712.00 whereas the Australia wide median is $1,027.00.In Ethelton 26% of dwellings are fully owned, 36% are being purchased and 31% are rented.This compares to the Australian average of 33% fully owned, 32% being purchased and 27% rented.[i]

This little suburb of approximately 1 square kilometre is situated on the Le Fevre Peninsula about 14km from Adelaide's CBD, a very comfortable 20 minute drive.There are train and bus services to the area.The beach lies only 1 km to the west and the Port River runs along the east.The area consists of mainly character and period homes, some with traditional iron and timber cladding.Block sizes tend to be smaller than average but this works favourably when seeking to subdivide in the area. The shopping is very limited in Ethelton but there are major shopping centres such as Westfield West Lakes and the Old Port Canal a short drive away.However the true value of Ethelton lies in its close proximity to many highly desirable features in the adjacent suburbs.

To the west of Ethelton is the lovely beachside suburb of Semaphore with all its cafes, galleries and shops full of antiques, collectables and gifts.At time of writing you could still go to the cinema for only $6 each-latest releases!Historic Port Adelaide sits just over the river to the east and offers a wealth ofculture highlighting aboriginal heritage, colonial times, maritime influences and, more recently, the many artists who have come to live and work in the Port area.Ethelton, quiet and peaceful itself, is surrounded by all the attractions of theatre, sport, shopping, cafes, pubs and other entertainment to create a great lifestyle.

But it is the redevelopment of an area at the Port called Newport Quays that will have the greatest impact on rising values in Ethelton and adjacent suburbs.The whole area will be transformed with a marina, parks, promenades, pedestrian and cycling trails.[ii] The $2 billion being invested in the port of Adelaide will fund thousands of residential, retail and leisure developments and the flow on effects will be significant. The recently announced multi billion Air Warfare Destroyer contract will also bring an economic surge to the area, along with strong demand for housing.

So far as specific locations within Ethelton that are better than others, I would concentrate on the character/period homes on at least 500 square metres, close to the Newport Quays precinct. The older homes generally increase in value at a greater rate than more modern conventional homes and in many areas of Ethelton (not all) you only need 250 square metres to split the block in two.

Locations to avoid in Ethelton include Bower Rd and Causeway Rd as they carry a lot of heavy vehicular traffic.

According to RP Data, investing in Newport Quays could set you back $900,000+ for a three bedroom apartment. The median house price in neighbouring Semaphore is $490,000.The median house price in Ethelton, however, is $311,250 (Sept '07).But with all the growth and development in the area it won't stay this way for long!So if you're looking for property you can afford to invest in now that also has great potential for future returns, you may like to consider Ethelton, as good things come in small packages!

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