ACT Canberra IP suburbs and whole market trends in ACT

Hi All,

We are planning to buy either IP/live in property around Belconnen. could you please suggest some good suburbs in Canberra to buy?

 

Welcome to the forum! Always be more specific with questions you ask. This is like saying - hey, I want a car, without mentioning budget, size, likes, dislikes, requirements etc.

 

Welcome,

My pick in Belco would be Evatt:

>$2000/wk Median weekly household income,
unemployment less than surrounding suburbs,
> 25% of residents have More than $3000 gross weekly income,
13k from CBD
Median house price <600k
79% owner occupiers
only 6% public housing vs say Florey at 15% or BelCompton
Also higher rental yields than surrounding Belco burbs

 

'around belconnen' already narrows it down a fair bit. depends what you want really..closer in? better gains? cheaper entry price?

Like Jamesaurus said, Evatt is a good option - can probably pick up something mid 5's. They all probably move fairly constantly over time though. Page, scullin, even Latham (a bit further out) are all good. Florey / mckellar etc probably not the best 'value'.

just factor in rates and land tax to your calculations if renting out

 

If renting out, there are several contributing factors and proximity to schools is one of them. Melba Copland is the only option for a high school in Evatt and it has problems with drugs. Our investment is in Florey and tenants were happy to pay extra so their kids could go to the St. Francis Xavier college. After rates, land and agent taxes we get 4%.

 

It's a very broad question

Generally speaking - prob best to stay away from units/townhouses. There's a huge oversupply.

Detached houses tend to cruise along nicely in terms of growth. I've always like the inner North and South - but the purchase price is quite high and they've had a solid run in the last few years so I wouldn't be surprised if growth flattens out for a bit.

Cheers

Jamie

 

I've been recommending central Belco around Page/Scullin for a while but I'm not sure if there's much growth left for these areas. They seem to be ticking along still but probably getting close to the top now

 

"IP/live in" - two very different purposes here and sometimes tough to mix. If I was buying an iP in belconnen I would target a house in a cheaper suburb such as Holt, Higgins, Latham- get a decent block of land and maybe do a Reno down the track. However if I was living in belconnen my first choice would be Hawker or Weetangera as they are the better suburbs, bigger blocks and larger houses and good proximity to town centre, good local shops at Hawker and access to the city is good via coulter drive. Primary schools in both suburbs are good. Page and scullin have had good growth already as Cimbon said above however these suburbs well located as well.

 

I am currently looking in KALEEN to buy, in the range of $650k - $750k
but, I am expecting 4 beddy under $750 with the block size roughy 700sqmtrs to 750Sqmtrs.
I went for a few auctions but they passed it because they didn't get the reserved price.
when we take a look at the auction clearance rate, its showing under 50.
but, the owners in KALEEN is asking more than the average price for the houses.

Yes, you are right Kaleen is close to Belco and city as well. Kaleen school also has some good name though it's not that well.

 

I own a block of land in an upcoming brand new suburb next to HOLT which is called "Strathnairn" alias ginninderry , the settlement will be in 2020 January perhaps. I got this one for 300k with the size 462 SqMtrs. Looking for other property to buy in KALEEN because of school and commuting
average price range is for 3 beddy will be 650k to 750k and 4 beddy will be 750k to 850k. So, I am thinking about the declining of house prices, auction clearance in Canberra and other states
I have a bit of confusion to wait for some time or proceed to buy it now.

 

Which school? The good thing about the suburbs I mentioned is that they are cheaper than the nearby "better" suburbs like Hawker and Weetangera mentioned above but you get access to the same schools. 200-300k saving for a difference of ~2km.

 

Kaleen is a good suburb with one of the higher median weekly household incomes of the Belconnen region and higher proportion of households earning more than $3000 gross weekly income- hence why your paying over the Belco median because it is a better suburb with better demographics and closer to the city. Its a great area for families and one which has had consistent growth over the last 10 years.

I wouldn't rush though- stick to your numbers where they make sense to you!

 

Unintended consequences lie in wait to bring down commercial property investors

Unintended consequences lie in wait to bring down commercial property investors | The RiotACT

Just found this article from June 2018 - Commercial stamp duty phase-out boost for small business and investment | The RiotACT

 

"Land tax on a $2 million property in Victoria is $12,000; in the ACT the property tax is $113,000"

wow....crazy

 

Article in Canberra times about rent reforms.
https://www.canberratimes.com.au/po...nges-will-drive-up-rents-20190115-p50rgg.html

 

I am monitoring Kaleen in Canberra since Christmas time, it keeps on going up recent 4 Bedroom with 860 Sqmtr sold for 867k so others also asking the same price for relative properties. I think this one is the booming suburb in Belconnen district right now.

So, I am planning to buy a smaller block (between 700 meters -750mtrs ) without renovations and 3 bedrooms then we can extend one more bedroom with DA approvals. This idea came into my mind because another property which is sold recently in Kaleen was done in this way.

I found one block and it has an easement (Right of access) block size is 800 +meters. I would like to extend the house with one extra bedroom, WIR and ensuite. It has 3-bedrooms 1 toilet 2 garages.

Could anyone try to correct me and my thoughts with their valuable pieces of advice by looking at the attached block image?

 

Have you done a feasibility on 1 or 2br granny flat on that block either attached or separate?
As noted a good jump in median price from 3-4 bedrooms in Belco area, but you could potentially have the extra income as well as having it valued as a 4-5 bedroom house if you add a GF?

 

Looks like the Greens will be pushing (Remove no cause eviction like Victoria)
Renters deserve a better deal | The RiotACT

 

Residential Tenancies Amendment Bill debated today at ACT legislative assembly - to watch video - scroll right hand menu.
ACT Legislative Assembly On DemandUodxNGKGStoKfRzY6O9wPcHh3gbW4p4JEjz-vAkV38w9dV_FZAGE

 

While prices are in freefall across the nation, the last bastion of Australia's artificially inflated property market - Canberra is showing signs of cracking as well (just like those Opal Towers)

Majority of auctions are failing to meet reserve only to see those properties back into the market for private sale. Sellers - unable to get a buyer ready to exchange contracts for months, are forced to chop 5-10% of the original price.

Insane asking prices of Taylor and Throsby have been adjusted, and the "Land For Sale.." billboard has been repainted from 350,000 onwards to 300,000 onwards (actually those 350 sqm don't even deserve 200K but that's another discussion)

Jobs are being decentralised outside of Canberra to the bush. Lenders are unwilling to lend and advising people to take LMI even if they have 20% deposit. There's a bikie establishment (prone to shootings) in majority of Canberra suburbs. Given the sentiment and changing geo-political dynamics playing out in Canberra, where do you think the market will go?