ACT Canberra Property 2018

Lots of happening in Garran specially in lower Garan ... lots of knock downs old houses and build new houses..but still is an attractive suburb and all surrounding...

 

Thanks. I know it’s considered a nice area but am attracted to the central location, bushland close by and the very good schools in these suburbs. My wife plans to study nursing so close to the hospital is a big plus.

Was after a sanity check and you have confirmed. Thanks again.

 

is buying a property for airbnb a good idea?

Have a read of this thread there is some good advice here on airbnb in Canberra

 

Agreed very nice suburbs, likely to grow above average growth in Canberra. Limited supply and geographically central and likely to become more so as Canberra builds up. Some nice pockets in these with views as well. When you consider their neighbours (Yarralumla and Deakin) I think they are perhaps even a little undervalued.

As some others mentioned all three have great schools.

 

Anyone have a strategy incorporating multiple properties in ACT?? (and backing that the potential capital growth is worth the holding host of paying the extra land tax)

If so- would you do the same if you had your time again?

 

Has anyone been to any inspections or auctions lately? Just wondering how the Canberra market is going - it looks like it may be slowing down. We might need to sell in a few months

 

Perhaps wait for spring and summer. I believe things usually slow down in winter. Sales volumes have been way down on past years and vacancy rates remain below 1%. I would like to hear other thoughts on this

 

Yes, it wouldn't be before Nov-Dec

 

I am seeing the market behave a bit like a ripple right now (for detached houses, units/townhouses are still flat). The high demand has shifted to the cheaper suburbs of Belconnen and Tuggeranong as they are the most affordable. Have attended a few auctions and the amount of bidders is less but prices still holding up. IMO we are nearing the end of this growth cycle however we will see a jump in demand in Spring/Summer no doubt as more properties come on the market and present better but i doubt prices are going to rise much in 2019. Canberra has had a good run this upwards cycle. But i could be wrong..

 

CBR actually has the highest published clearance rate of any capital city at present.

That said I still see less registered bidders in the cold winter months here!

 

Yeah winter tends to be a bit slower - will be interesting to see how the market performs when spring arrives.

Cheers

Jamie

 

Agree will be interesting to see what happens as things warm up. I thought this was interesting. The median rental in Canberra is now even with Sydney: Domain's Rental Report: June 2018 - Domain Group

 

Just came across this news article today Libs back Greens’ tax break plan for landlords who charge below-market rents | The RiotACT

 

Interesting article. So the ACT govt causes rents to soar by charging ridiculous land tax and rates, (taking in enormous revenue from it) therefore making it far less attractive for investors to buy in canberra and causing many to sell which further pushes up rents. And the answer is to get affordable housing rentals is for landlords to become a charity and help the renters of Canberra out by charging less rent for a land tax discount. Give me a break. How about the govt just spends some of the millions they took in on the land tax to build some more housing for those who cannot afford to rent? Or abolished land tax all together. Don't make landlords rectify the mistakes of the ACT govt!

 

The numbers don't really stack up in that scenario. I like the idea, but I just can't see anybody jumping at that. I am pretty sure a 25% in rent will cost more than the large land tax bills.

 

Absolutely. Take the average 3 bedroom house in Watson. The land tax would be around 5K. The rent is rougly $600 per week. 25% of that is $7800 per year. Even if you get 50% discount, you are still loosing 5K per year.

 

Yeah it's ridiculous

I had a property in Downer - rates and land tax each quarter was a killer!

 

Anyone been to any properties for sale in the Belconnen area recently? It's hard to notice any trends because there have been very few sales in our suburb.

 

Haven't been to any auctions in Belco recently but stock has been low, this will pick up late Sept/Oct as way more comes on the market at that time. Quick holding cost calculation on a house bought for 550k with land valuation of 350k in the ACT (in Holt or Higgins for example). Land tax $3,454pa, Rates $2,400pa, property management at 8% of $550/week rent = $2,288, insurance $800, Water $700, R and M $500. Total of $10,142!!! Same house bought in Brisbane would be approximately $4,250 less or total of $5,892 approx. If you can hang on to your IP in the ACT then rents will continue to rise as more investors sell and less buy.

 

It's a PPOR at present so not an issue. May sell in a few months so was just curious