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ACT canberra general

Discussion in 'Where to Buy' started by S1mon, 22nd Jun, 2015.

  1. S1mon

    S1mon Well-Known Member

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    Every good property forum needs a Canberra thread yeh? according to the herron todd white property clock Canberra is a rising market.

    imo,
    • houses on decent blocks in well located established suburbs are selling well and have been for 6(?) months
    • avoid apartments, market is in oversupply with reasonable quantities still yet to come onto the market. difficult to rent out in the current market. Though, without looking at stats, based on my observations, the rental market is a bit better than it was 6 to 12 months ago.
    • land tax and rates are excessive. no land tax threshold, and substantially ever increasing rates. The federal govt can thank the ACT got for the majority of negative geared properties in ACT.
    • latest budget was ok..no large public service cuts etc...the self fulfilling doom and gloom prophecy that stagnated prices has reversed and sentiment is better

    Re. apartments, I was surprised to read Wayfarer (to be canberras tallest resi building once completed, located in belconnen) had only 40 odd left to sell from 235 odd. But im guessing a lot were pre sold before the glut, or more accurately before most were aware of the glut. The same developer just bought another block close by so..

    Anyhow, went to a few auctions on the weekend in my local hood, the suburb of Page (well located older suburb). One went for 40 odd k more than i woulda guessed...60 odd people, 8 or so bidders. other maybe 10k over (440), very much a renovators delight, 5 or so bidders. So pretty good results imo…no Sydney but slow and steady is good.

    Re the weekends auctions, local paper said "All properties offered to market in the Woden Valley and the Inner South sold and the majority of those in Belconnen sold at auction. However seven out of 10 properties that went under the hammer in Gungahlin passed in."

    I think that would be in line with expectations...that is, avoid Gungahlin due to excess supply/land
     
    tango76, BigKahuna, Azazel and 2 others like this.
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Good post Simon - and I agree with it all.

    I've said it in other posts - I feel that things are looking up for the Canberra market.

    We've had a prolonged period of stagnation - which has probably been driven by mindset as much as economic influences. The doom and gloom of public service job cuts isn't splashed all over the local media these days - and the same level of uncertainty/fear doesn't seem as prevalent when I talk to to clients.

    Totally agree on established houses being in demand - some of this could be due to the influx of buyers who have just sold back their Mr Fluffy homes to the govt. I feel for these people - it's a terrible predicament. Not only are many losing their family homes - but the current surge in prices means they'll likely suffer financially too.

    The off the plan apartment market is over supplied - and the demand isn't the same as houses. However - some developments in certain areas do offer good opportunities for First Home Buyers that can take advantage of the FHOG and stamp duty concessions. I can see value in new stock around Kingston.

    p.s - one little bonus of investing in the ACT that slightly offsets our high land tax costs is the ability to claim stamp duty within the first year of ownership.

    Cheers

    Jamie
     
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  3. Azazel

    Azazel Well-Known Member

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    Ah finally! Good idea.
    Canberra has totally flown under the radar in my opinion.
    As a general indicator, almost every suburb I look at on realestate.com.au says 'High demand'.
    Prices have definitely moved quite a bit, a good indicator being all of the cheapies disappearing in the outer suburbs (Southside). And closer in, try to find a house in Narabundah! Forget about it.
    Would definitely stay away from apartments, but then again, I just helped a friend negotiate for a 3 bedroom place, but it was more of a townhouse I guess. Was able to get a decent discount.
     
    BigKahuna likes this.
  4. mini2

    mini2 Well-Known Member

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    How Tuggers looking in general?
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I've got an IP in Calwell - but haven't kept a very close eye on the Tuggers market (I keep a closer watch on the inner North).

    It seems to be performing ok - I have a mix of first home buyers and up-graders purchasing in the area.

    Like most of Canberra - decent houses seemed to get snapped up quickly. Again - I wouldn't invest in units. There's a big development going up across from Bunnings which has cause more OTP stock to become available.
     
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  6. mcarthur

    mcarthur Well-Known Member

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    I watched Woden area for a while but haven't since buying the PPOR. In general, things seem pretty strong without being silly. I'm IP looking in Brisbane because I simply can't see anything like the CG here compared to there.
     
  7. mini2

    mini2 Well-Known Member

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    It will be interesting to see if the new CIT/expansion of DSS around Greenway will suck up some of those OTP stuff across the road from Bunnings. It probably doesn't help existing stock given the OTP's are at least 10% cheaper.
     
  8. Nemo

    Nemo Well-Known Member

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    I agree - I think Canberra is picking up. A lot of that negative sentiment and ppl waiting to see if they have a job is disappearing.

    One of my places is about to become empty. I havent been watching the rental market too much, but noticed there werent as many places advertised as there was this time last year (in the area im looking)... rental prices are still quite soft - I'll probably drop mine $30-$50pw.

    I think 3 of us who have replied also have properties in Adelaide.
     
  9. S1mon

    S1mon Well-Known Member

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    yeh surprisingly a few (southern) Adelaide owners around

    anyhow from today's news

    "
    Figures released on Tuesday by the Australian Bureau of Statistics show that prices in Sydney jumped a further 3.1 per cent over the March quarter while the other capitals were largely flat or falling...

    Canberra was the nation's second best performer over the March quarter with prices up 1.1 per cent, followed by Adelaide (0.7 per cent), Hobart (0.5 per cent), and Brisbane (0.4 per cent).

    Prices in Darwin and Perth fell over the quarter by 0.2 per cent and 0.1 per cent respectively."
     
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  10. S1mon

    S1mon Well-Known Member

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    so went to two auctions yesterday in Page

    both had about 5 active bidders...

    one passed in at 480, sounded like reserve was very slightly above that. 6 months ago it might have sold for 460 odd

    and other sold for 490 (was on market at 490k/on last bid). very basic house and land. great result for seller. buyer overpaid imo. good block but not even in rz2 zoning like a lot of the suburb. maybe 6 months ago it woulda been worth 450 odd.
     
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  11. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Hi guys,

    Whats your opinion of amaroo/harrison?
    I have noticed listing increase during september /october every year in Canberra, is that a good time from buyer point?
     
  12. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    The Canberra market does seem to have seasonal adjustments. Spring is generally the season when activity picks up - not such a good thing for buyers.

    If you're buying - you want to be attending auctions in the rain on a 7 degree day in Winter :)

    Cheers

    Jamie
     
  13. Starlite

    Starlite Well-Known Member

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    Hi Simon,

    I went to both auctions too. The one passed in sold at 499. Great results!
     
  14. S1mon

    S1mon Well-Known Member

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    ah yep i see it now old sold prices. 499 wow im impressed...though it was better than the other one so maybe i shouldnt be surprised.

    Are you looking to buy Starlite or a local just keeping an eye on the market?
     
  15. S1mon

    S1mon Well-Known Member

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    im not a big fan of out that way...newer houses / smaller blocks / less potential / more land etc...tho young families etc seem to love it and im sure many have made some good $ and probably makes a good PPOR...but as an investment you would probably do better in older suburbs on bigger blocks..imo
     
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  16. Starlite

    Starlite Well-Known Member

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    Yeah, I was bit stunned that it was passed in initially. Considering it was renovated and has better presentation than the other original house.

    I am your neighbour! We moved to Page last year in Oct. We bought it to turn it into an IP after reno. Still planning on the reno. I always keep a close look at the market. Its exciting to see growth!
    Do you live on RZ2 zoning?
     
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  17. S1mon

    S1mon Well-Known Member

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    ah good work...dont think you can go wrong with Page. I see it got a mention in this months HTW review, along with a few other suburbs,...soon as i saw the monthly theme best buys for 500k or whatever, i immediately thought Page...
     
  18. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Hi Guys,

    whats your opinion on dunlop?
     
  19. orangestreet

    orangestreet Well-Known Member

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    I would have thought that Dunlop would be one of the last suburbs in Canberra where you can get a decent sized house on a decent sized block for under 500K. But I have not seen any growth for the last 4 years at all. Mind you, it had stellar growth from 2002 to 2011.

    The fundamentals are all good. The new stock that came on for the market should more or less be sold and there is nowhere else to go from here (NSW border). hopefully, 2015 should be the year it starts picking up again.

    What made you look into Dunlop?
     
  20. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    This is @Nemo30 stopping ground.

    Cheers

    Jamie