It's not all gloom and doom for the property market says Adelaide property professor Peter Koulizos.
"The one to watch out for is South Australia. That is set for a stellar period in property.
A fantastic time to be buying property and you can add value in a number of ways to add to your profit. Whether that's through renovation or possibly even sub dividing," says Peter.
Knocking down an old house on a large allotment and building several townhouses on it has become easier in several council regions as a result of the state government's 30 year urban renewal plan and an attractive wealth creation option for smart investors.
"Subdividing has become easy because all major State Governments around Australia do not want urban sprawl. They do not want houses creeping into the food bowl areas, to winery areas so what they're doing so what they're doing is encouraging what we call residential infill so making better views of existing residential areas," says Peter.
We've asked Peter to identify Adelaide's top subdivision hot spots where you can capitalise on a bargain buy...
"So if you're looking for capital growth you're better off in suburbs close to the city or close to the water and that will never change," says Peter.
Like Christies Beach in the Onkaparinga Council where you can build on as little as 200 square metres of land as long as it's on a main road. Tony Schnaars is building four three bedroom townhouses where a solitary house once stood.
"So you know we would hope on completion of the project at best we could probably get between 300 to 350 per week so as an investment on a resale of say just over $300,000 you know direct to the mortgage and appreciation almost getting to a cost neutral," says Tony.
But of course buying this for 300 and then you've got 4 properties on here you've more than tripled the value of this property haven't you?
"Absolutely as soon as we get council approval the value of the land would go up from $300,000 to approximately $400,000," explains Tony.
"This is what I have been talking about, we are in Port Noarlunga and the Onkaparinga Council and on this relatively small block of land of 350 sq m you can put two townhouses on here and over on this side on 750 sq m block you've got the opportunity to knock down the block and build five townhouses," says Peter.
Another hot spot is Fulham in the western suburbs. Medallion Homes is building 14 townhouses on Tapleys Hill road. Annie Leo says the minimum requirement is 150 square metres for each dwelling.
"You've got all of the resources and infrastructure here. You're close to the city and the beach. You've got transport straight out your door and cafes, lifestyles, restaurants, great schools. So it's all here rather than having to go too far out of the urban scrawl," explains Annie.
Peter's other top picks are along Brighton road at Glenelg and Seacliff Park.
"That's where the council is encouraging some medium density development so it doesn't really matter either side of Brighton road they still allow it. Some areas of Brighton road are more commercial so again it's very important to check with the council what the zoning is but there are some excellent examples of properties built on 150 square meters along that strip".
Peter has seven golden rules for investing in property. Set your goals, your strategies, do your homework and seek professional advice.
"Generally in real estate there's only one person working for you and that's you. The agent who is the professional that most people meet up with is, as far as property is concerned, is working for the seller; the owner of the property, but in the end you have to find somebody that is working for you and that can be a qualified property investment advisor," says Peter.
Next select your suburbs but keep it to two or three.
"If you're looking for some capital growth, generally properties close to the city or sea are good for you. If you're looking for rental units, maybe your income is not that high and you can't afford a big negative cash flow, then you're going to have to look at suburbs in the outer rings of the metropolitan areas or regional or country areas.
Then select your property and finally
"Just buy. In the end I come across far too many people that show sign of what I call analysis paralysis. Do lots of research and then do nothing but in the end if you're going to make money from property you're going to actually have to buy that property," says Peter.