ACT Canberra Property 2018

Hello all, what are you thoughts on the Light Rail's affect on house prices in Franklin/Harrison, once it's up and running? Thanks Joe

 

It's already factored in to the price. I don't think there'll be any further increase at this late stage solely due to the light rail

 

I agree with above. I live in Franklin and houses have had a solid increase in value the past 3 years. At start of this growth cycle my house was valued at 630k and recently valued at 875k. Don't think the light rail once up and running will make any difference to prices. Franklin and Harrison and well located with good schools and amenities and the Gungahlin town centre is expanding, there is so much being built, so i think that for houses and townhouses prices will grow in the long term. Wouldn't buy a unit. Townhouse go for 3 beds min.

 

Some news about rents in Canberra...
Housing squeeze tightens as ACT vacancy rates keep falling | The RiotACT

 

nothing to do with land tax deterring investors :/

(got my new land tax bill today, up another 9% to 3k a year on a 319k unimproved value)

 

@S1mon is the ACT government starting to see a reduction in land tax receipts due to investors fleeing? Or have I got my answer by the fact yours has gone up 9% to help plug the hole?

Note they are no longer getting the benefit of the $3k I used to pay them....

 

Good news for those with IPs in Belconnen:

Five-bedroom Scullin home sells under the hammer for $690,000

Anyone else think it's odd to have a 5 bedder with 1 bathroom? I wonder if they would have got more if it was 4 beds and 2 baths

 

More good news:

Canberra's clearance rate on Saturday was the highest of 2018

 

Good to see that the chaos in Canberra fed politics did not affect the market on the weekend

 

not sure if (existing) investors are fleeing, but certainly would keep a good chuck of new ones out! So many apartments coming online its big $$ for ACT gov!

was land tax a consideration when you sold?

 

One of a few factors. My brother was the tenant, and he'd just got a permanent job.

Land tax (3k), rates (2k) and strata (3k) was $8000 on a property worth $320k.

It just wasn't worth it anymore, so we ate a second round of stamp duty on transfer to him and between us we're in front now.

 

I guess the good thing is that prices may not fall as much in Canberra because of that (I hope lol)

 

Damn :-(

Another reason why I'm not a fan of units/apartments in Canberra.

It's bad enough that growth is usually pretty average - but the holding costs are just too high. Land tax is a pain....and then you add body corp into the mix as well it all becomes too much.

PM's charge an arm and a leg too - seems that anything less than 8% is a bargain in the ACT with around 10% being closer to the norm.

Cheers

Jamie

 

https://www.canberratimes.com.au/po...ides-uncovered-in-reform-20180827-p5003b.html

Thoughts on this proposal?

 

Its pretty difficult to argue with the closing quote noting the inefficiency of the proposal:


"economists have expressed fears such a system would be a disincentive for people to renovate or extend their homes, as it would mean an increase in rates.

"Because of this disincentive, economists believe that rates based on property value are a little less economically efficient than rates based on land value. However, they are still much better than stamp duty," the discussion paper said."

 

How would they know you renovated the inside though? Surely that would only be the case for obvious things like extensions that you can assess from the outside?

 

Imagine the new strategies to make your house look worse for valuers! I could start up a business as a low valuation consultant.

Talk of the tram to Woden being axed. That would be interesting given the amount of apartments pre-sold on the basis of the tram, not to mention the advertised tram stop under Grand Central.

 

An alternative view is what if the extension actually devalued the house? And would the valuation of the property be subject to market variances? Or you could simply let the place fall into rack and ruin in order to save a few bucks on rates - joke.

 

Good to see Northbourne taking shape recently though..

Plus more speculation recently for Belconnen line and pressure from universities:
https://www.canberratimes.com.au/po...through-middle-of-campus-20180709-p4zqd9.html

 

How likely do you think there would be interested buyers for a 2 bedroom unit, rented out at $325 per week until June 2019 at 26 Springvale Drive Hawker?

Below is a link to the property (first 5 to 6 photos are recent this year). I paid $265k for this unit in 2009. New carpet, paint, bathroom fittings, new built-in to main bedroom, in May 2017.

Rates = $400 p/q
Levies = $600 p/q
Land Tax = $600 p/q

Agent initially valued the unit between $240k to $260k recommending a listing price of $250k. Then on further consideration he said $225k+ to $230k+ to generate interest.

17/26 Springvale Drive, Hawker ACT 2614 Address Information | allhomes

I would be considering listing it for $229k+ or $230k+ given the agent's advice.