ACT Canberra

@Catherine IP I've not had any bad experiences with property managers in Canberra (used both Independent Property Group and LJHooker) but equally nothing that I can recommend as a standout. It seems to be an industry with a lot of churn i.e. don't expect to establish a long term relationship like you might with an accountant or broker.

You'll also find the charges are fairly hefty compared with interstate cousins - typically 10% + anachronistic fees which grate i.e. being charged $7.50 a month for postage when they email you everything.

I'd suggest you go for the full service to start with i.e. get all of the rates, land tax, water and sewerage, body corporate expenses paid for on your behalf by the property manager. It doesn't (in my experience) cost you anything extra and it's just a lot less hassle.

Be very clear with your instructions however if you want them to pay rates for the full year to get the discount or by quarters as that (depending on amounts) could wipe out a month's income.

 

We recently bought an investment house in Belco and have been approached by the Luton Properties management team. Can anyone say somethng about them ? 10% charges sound very steep. This is our first investment and I didn't know that management fees are so high in Canberra.

 

Hi there - welcome aboard

It's pretty much the norm. If you shop around you might get a bit cheaper. The quality of PM's in Canberra doesn't seem to be that great - so I'd focus more on getting a good one rather than saving on management fees.

Cheers

Jamie

 

ThanKs @Martin73 much appreciated for your insight

 

Canberra's property prices may go up due to the below.

This is not a drill - Haigh's Chocolate is coming to Canberra

 

Thinking of moving to Canberra and going to this Auction

55 Banks Street, Yarralumla Real Estate For Sale

 

Whoa

If you need finance I know a guy lol

Will be very interesting to see how much it goes for.

Cheers

Jamie

 

Canberra prices finally starting to fall.

 

Unit prices have been falling for a while and most of those are units. I always felt that the "better" Belco suburbs were a bit overpriced - not sure how 200k+ price differences make sense when some suburbs are like 1km apart.

I have seen a lot coming on to the market in the inner south this week. Maybe many owners feel that we've reached the peak now

 

Smart owners are selling now as it has reached the peak and will start falling next year. With increase in land tax, council rates and other special duties that only ACT investors have to pay, lot of investors are getting out of the market as well.

 

Will also be interesting to hear what details the local Labor/Greens have in store dealing with rental reform changes in the ACT. I think that could spook mum & dad investors some more. Plus we have the federal election and aftermath if Labor get's control of the steering wheel.

 

If you want to confirm a thought/opinion, you can usually find some data to back it up..
I notice the search was on "worst performing Canberra suburbs", I'd hazard a guess and say that if you did "best performing Sydney/Melbourne suburbs", you could then argue that Sydney is set to "boom".. What's more important is to read behind the data and understand the why behind the data.. Most of these data points 6/10 are units, this is a fairly known thing, buying units in Canberra isn't the most savvy investment..

Hope that helps shed some light and I generally feel the Canberra market is quite solid..

 

Evidence for this? Anyone can pop in throwaway statements but I would gather if you looked at the stats, if investors vs. owner occ selling is measured, you may find the opposite.

 

I attended some open homes this weekend. Went to 5 open homes, four had less than 2 inspection parties. Its different than last year when dozens of people turned up for even older houses. Reduction in buyer activity is a sign of weakening market.

Few important indicators that are going to puncture the Canberra balloon.

1. Royal Bank Commission report which is getting finalised in the coming weeks and its impact on banks and lending.

2. Damning report that Canberra apartments are built with shoddy standards and builders are facing lawsuits. Buying a unit or apartment in canberra now is full of risk.

https://www.canberratimes.com.au/na...ry-act-building-industry-20190101-p50p4i.html

3. Surrounded by two falling cities (Sydney and Melbourne), how long can Canberra defy the inevitable? Not long, downfall has already started.

 

This has been known for at least 3-4 years. Units are a separate category entirely.

The good thing is that land tax and other disincentives have meant that most of the activity in Canberra has been among owner-occupiers rather than investors. This is not the case in Sydney and Melbourne - they also increased more rapidly than Canberra. If Canberra experiences a fall, it will be less because the increase was less and also because the economic fundamentals are better (higher employment, higher wages).