ACT Canberra Property 2018

Discussion in 'Where to Buy' started by Cimbom, 13th Feb, 2018.

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  1. Todd

    Todd Well-Known Member

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    Is the Canberra market now flattening? HTW clock has Canberra houses now in the downwards section (which doesn't seem correct) but SQM research asking prices have definitely flattened out (see link below). I have been to a few house openings in my suburb (Franklin) and attended an auction. Way less people, in fact very few people at the openings, and was 1 bidder at the auction. Less properties going to auction as well overall. Could be the beginning of the end of this growth cycle? Or do we still have some growth in houses to come?
    SQM Research - Weekly Asking Property Prices
     
  2. Jamesaurus

    Jamesaurus Well-Known Member

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    I'm sure if you ask 10 different investors where a certain market is on a property clock you will get 10 different answers, here is the June HTW clock :
    https://storage.googleapis.com/htw-...23d-month-in-review-june-2018_residential.pdf
    FWIW they have Canberra "Approaching Peak of Market".

    IMO i'd say no-one likes standing out in Canberra winter for auctions and spring should heat up.
     
  3. Kassy

    Kassy Well-Known Member

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    Agree with @Jamesaurus, makes winter great for buying!
     
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  4. Todd

    Todd Well-Known Member

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    HTW May 2018 had Canberra houses "starting to decline". Now back to approaching peak! Agree that winter is a buying opportunity.
     
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  5. Toilandtrouble

    Toilandtrouble Well-Known Member

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  6. Meri

    Meri Member

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    Whats the thoughts on new area Gininderry ... is worth looking at it as an investment as this is my first investment... thanks
     
  7. clink

    clink Well-Known Member

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    I think you'll find that the consensus on here will be to buy established houses on large blocks of land. There's less of a chance of the capital going sideways or down with established compared to new builds because of the danger of oversupply in green-fields...and be wary of spruikers who can receive substantial kickbacks on sales that are usually factored into the purchase price.
     
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  8. Meri

    Meri Member

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    Thanks for the reply .
    But they say its going to be big area buid 11000 homes ( biger than Gunghalin) with a 5 storey shopping centre...no government housing as its private development ... 6 star energy rating( all houses have to have solar panels) ... location west Belco ... 20 min to city ... first stage sold very quick ...of course it will take about 30 year to finish the project...
     
  9. PandS

    PandS Well-Known Member

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    No such thing as no government housing :) just white little lies
    government can buy those apartment or house as a private buyer and put tenants in
    you can be almost certain they will it not if it is when, part of ACT government plan to mix public housing among the suburbs, you just cant picked it out until they have tenants in
     
  10. geoffw

    geoffw Moderator Staff Member

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    That's not a great strategy for an investment property for the short term (10 years +). It's all to do with supply and demand. To get good prices, you need a demand which is greater than the supply.

    I don't think you won't get great resale value for a home there for quite a while. People who move there don't want a home that's been built for them. Typically, for the same money or less, they can build a brand new home exactly to their requirements.

    And renters are likely to have a lot of choice.

    That's what happened in Jerrabomberra for quite a while, as well as Googong. Apartments in Canberra are going through a similar phase.

    I'd suggest that a better strategy would be to buy an established house in an established area, where there is already infrastructure, a limited supply, and a demand. If you can get a house for a good price which requires cosmetic renovation, even better. If those places are out of your price range, go a bit further out- even across the border in Queanbeyan or Jerrabomberra.

    And speaking of Queanbeyan - do your homework on what the ongoing costs will be for a house in ACT v NSW, especially rates.
     
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  11. Toilandtrouble

    Toilandtrouble Well-Known Member

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    I concur with others. Buy established properties on larger blocks. I think more than anything it will insulate you from greater risk as the greenfields areas are dime a dozen, far from town and they will definitely get public housing in time.
     
  12. Jamesaurus

    Jamesaurus Well-Known Member

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    For context: these maps show that the established areas will look comparatively even closer to the Canberra CBD:

    http://ginninderry.com/wp-content/uploads/2016/09/West-Belconnen-Masterplan-and-Suburb-pdf.pdf
    Planning and Community - Ginninderry
     
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  13. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Agreed.

    Our best performing properties in Canberra have always fitted this description. Established homes in established areas on decent blocks that could be renovated for value add.

    Our poorest performers have been townhouses/units - I wouldn't bother with them again personally. Body corps are a massive pain too.

    Cheers

    Jamie
     
  14. Meri

    Meri Member

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    Thanks guys for the advise ... i bought the land now but ill hold it for a bit and try to sell then ...see what i gain from it...
    What about Founders Lane ... 1 bed ...$397000...6 th floor ... as Airbnb...
     
  15. Jamesaurus

    Jamesaurus Well-Known Member

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    Too much supply not enough scarcity in the CBD area for my liking/risk profile
     
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  16. geoffw

    geoffw Moderator Staff Member

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    I hadn't realised that you had already bought the land. At that point, it's a bit late to ask if you're buying in the right area. I suspect you're unlikely to make much now from land you've already bought. You may be better off building, though, as suggested, your Cap growth may be a bit slower in the shorter term. In the longer term you may be ok.

    Founders Lane is a fair location, but as Jamesaurus says, a big supply and small demand. I think it may be getting a bit late for Airbnb, even though the location is good for one. You're going to have a lot of competition. Rates for units in the ACT are high as well, and will really bite into your income. Do your research well.
     
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  17. Alex McDonald

    Alex McDonald Active Member

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    Looking at PPOR in Hughes, Curtin or Garran. What are people’s thoughts for these areas? Will be house on an average block of land.
     
  18. Todd

    Todd Well-Known Member

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    I wouldn't risk buying an off the plan apartment in Canberra considering the amount of new apartment buildings with major defects. Also Airbnb sounds good but have you considered all the work involved ie bookings, payments, cleaning, phone calls, repairs etc etc. It's like having a part-time job. If you want to increase yield considering renting it fully furnished on a 6 or 12 month lease instead.
     
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  19. Todd

    Todd Well-Known Member

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    Really nice suburbs. Very well located between the city and Woden and this area is really the geographical centre of Canberra. Good schools in the area as well. These suburbs are expensive and have increased in value significantly the past 3-4 years, however long term a good buy and a great place to live.
     
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  20. Meri

    Meri Member

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    Any idea how the real estate would charge for that service...