ACT canberra general

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

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  1. Azazel

    Azazel Well-Known Member

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    Whatever the reason/s, it's seems to be doing better than Brisbane, but still flying under the radar.
     
  2. DanW

    DanW Well-Known Member

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    I hope so, its got some catching up to do. My house has been stagnant for a few years there now. Last bank valuation is still higher than the actual value..
     
  3. Starlite

    Starlite Well-Known Member

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    Which suburb DanW?
     
  4. DanW

    DanW Well-Known Member

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    Belco.

    Have they stopped all that silly development there yet?
     
  5. mcarthur

    mcarthur Well-Known Member

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    Not sure what's happening really anymore. There does seem to be a heap of for-sales and then sold's in Rivett in the past 6 months, so things are moving. Way more than the previous 5 years!

    Many reno's happening, but still lots of utes on the nature strip overnight (fewer bogans than in the 90's, but still around).

    Houses have definitely moved - we got about 3.5-4% average over 8 years upto the start of this year, then I sold. I'd say I missed some nice gain just this year - more than 6-7% :(.
     
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  6. Starlite

    Starlite Well-Known Member

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    Do you have a townhouse there?

    They are currently building the highest residential apartment with hotel in Belco town centre, next to CISAC.. Its called Wayfarer..

    Canberra’s tallest residential tower, Wayfarer, to be built in 2014

    I am sure that will increase more supply and reduce rent... Belco was a landlord's heaven five years back with limited supply and about 20 ppl going for each open home back then.. was hard to get a place to rent back in the days..

    Houses have been doing well so far tho.. complete diff stories with apartment and townhouses..
     
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  7. DanW

    DanW Well-Known Member

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    Yep that's right townhouse.
    Gets affected by units in a similar way to older units when new ones come on the market.

    Been 3 years since the price went down, but my previous valuation is the same as my equity loan commitment so I get no advantage selling it. While it's not costing me anything I may as well hold forever until the market turns.
     
  8. DanW

    DanW Well-Known Member

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    On another note, that's a pretty sexy looking tower.

    But who's being all these when there is limited rental demand? Is it going to foreign buyers?
     
  9. Starlite

    Starlite Well-Known Member

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    I think it will be a long wait before the supply get absorbed.. need labour to win the party... and a big amount of migration into canberra.. i rented for four years in miramar apartment.. 2 beddy 1 bath for $430 a week initially and when there were lots of supply out there i negotiated the rent down to $375.. currently it is rented for $360... the altitude apartment was poorly designed.. they have trouble selling it.. still many for sale right now and ppl that bought wanted to get out as well..the rooms are very small and some bedroom shouldn't be called a bedroom.. it has weird layout with lots of angle..

    personally don't think you will get much growth out of old townhouse in belco.. also opportunity cost of holding into something without good prospect for rent growth or equity growth.. jus my opinion tho.. on other side of the coin, gov is spending a bit of money to revamp the old commercial shops infront of westfield to create more restaurant.. might be a hippie town.. who knows :p?

    not sure who is buying the apartment in belco.. foreign buyers usually buy in gungahlin.. and also lawson.. the concept of the apartment is prob trying to attract DINKS and FHB..
     
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  10. DanW

    DanW Well-Known Member

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    That's the catch though - there is no opportunity cost for me to hold it.
    Was valued at 30-40k above what it's worth now and I drew all the equity out while it was at the peak.

    It's almost tripled in value since purchase, which means the CGT will kill me if I have to pay it at this rate

    Basically selling it I will lose cash not gain cash, it costs nothing to hold, and it keeps me diversified out of the other markets when they go down Canberra may pick up and I can go back and get equity once again. I'm kind of stuck but at the same time got nothing to complain about.

    I'll put it in the bottom drawer and come back in 10 years. Who knows, maybe a developer will buy the block to build a tower instead of these inefficient land-usage townhouses :p
     
  11. Starlite

    Starlite Well-Known Member

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    i think it has been a good performer for you since you have managed to get triple value out of it :)
    won't put it as losing cash even if you sell.. cause you refinanced and took those equity out to buy others and those IPS are generating income for you.. just thinking on the other side of the coin hehe.. but yeah i know what you mean to do a large payout when you sell.. not very attractive at this stage.. and the big CGT.. noone wants to pay that!

    well pray hard, there maybe another developer looking to generate another sexy tower in belco in future.. noone can tell :p
     
  12. S1mon

    S1mon Well-Known Member

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    hate those towers...act govt shouldn't have allowed...they are addicted to rates and stamps, like most govts i guess. apartments like LINQ (opposite the one you mentioned above) are much better, not just eyesore slabs. i agree it will be a while before supply is absorbed. house rents are ok but still down 10% or so from a few years ago imo (not based on stats).
     
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  13. DanW

    DanW Well-Known Member

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    What do you guys think of the south? I've been doing some work in Tuggeranong and it seems very quiet down there. Is everyone moving up north? The mall is empty
     
  14. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It's much cheaper down south.

    You'll get a decent 3 or 4 bedroom place between $400k to $500k

    Tuggers is quite far away from the CBD - and apart from an abundance of sports clubs...there's not a whole lot to do....unless you're into pokies and don't mind a schnitzel and chips.

    Cheers

    Jamie
     
  15. Azazel

    Azazel Well-Known Member

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    It's been flat for a while.
    I wouldn't go too far out, blocks get a bit small.
    Kambah and Wanniassa are always going to do well long term.
     
  16. S1mon

    S1mon Well-Known Member

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    tuggers does have a few large govt depts...but i would avoid (i call it north Cooma)

    i see vacancy rates are droppin a bit according to this

    'Canberra’s vacancy rate has fallen because of a drop in investor activity and a short-term increase in rental demand. The number of vacant properties in the capital dropped from 3.5 per cent in the June quarter to 2.1 per cent in October, figures from PRDnationwide’s second Australia Economic and Property Report for 2015 show.'

    usually drop early each year too (jan/feb)...might get under 2%..that would be nice
     
  17. Mooze

    Mooze Well-Known Member

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    Managed to put rent on our Duffy house up $15 recently - should have been $20 but blasted pm thought she'd do her own thing. Possibly could have gone $30 but wanted a quick changeover being Xmas (also property needs a full repaint/re curtain etc - due dec 2016). Was leased after first inspection window
     
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  18. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Just had a tenant leave an IP in Tuggers - was only vacant for a week (I think). Seemed to be a bit of interest in it.
     
  19. Azazel

    Azazel Well-Known Member

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    Went for a drive out to Uriarra Village, that's an interesting place.
    Also not ACT, but visited Wamboin.
    Really not that far out if you worked in certain areas.



    {Note - thread continues here: ACT - Canberra Property 2016}
     
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