credit tightning and its impact

I agree (and add me into the mix ).
But I also don't see any reason on the horizon for Canberra to boom - ie. start getting into 5% above 10yr CG.

Now,

• if Sydney's second department store - whoops, I meant airport - was announced as Canberra, or
• the high speed hovercraft - whoops, I meant rail - was announced and started, or
• the government announced an large increase in services - whoops, Hockey has just announced the opposite,

then I could imagine some growth and even boom.

Right now though I just see pretty average CG into the forseeable...

 

Canberra does it's own thing.
It's done it before, it will do it again. Sooner than people think (I reckon).

 

I agree with you, but if I can't understand the reasons for change then I may as well speculate on the stock market or in something else I can't predict or do anything about!
ie. I'd rather buy near a new Ikea and a train line and an approved satellite hub in Brisbane where the evidence is good for improved CG than an absolute speculation in Canberra that - for unknown reasons - it'll go up up up or down down down.

 

I agree in the style of your post, but I think the same with Brisbane.
In absence of the fundamentals, what's going to drive BNE increasing? Experts will say "well, after Sydney and Melbourne it's time!" or heard people on here say "because people said so". Doesn't sound too scientific, may as well chuck out all the RE investing books huh.

 

Adelaide Bank have just tightened the screw a touch, this morning.. this will impact some mortgage managers

You'll be aware that many financial institutions have recently tightened investor eligibility and increased interest rates for investment lending. As other banks have restricted investment lending Adelaide Bank has seen a significant volume of investor applications, particularly through our promotional variable rates.

As a result Adelaide Bank is introducing changes to its investor offerings from 1 September 2015.
Variable interest rates for new and existing investor customers will increase by 0.20% across our standard pricing structures. Note: the current special variable campaign offering will cease for investment lending only, therefore the increase to new business rates will be in addition to the application of 0.20% previously discounted from the standard rates.
Different fixed rates for investor and owner occupiers will be introduced, with higher fixed rates for investors
Maximum investor LVR for metropolitan Sydney will be reduced to 80% inclusive of any LMI (if required)

 

...and another one bites the dust...

 

It's a funny market.

There's almost two markets - the off the plan/new apartments/units/houses in the newer estates and then there's the established homes in the older suburbs.

The demand for the latter has picked up a lot this year and prices have moved. I don't have stats/numbers to back it up - only anecdotal evidence from my dealings with clients/agents and also keeping an eye on the market myself. In particular - the inner south/north, woden and weston areas.

It reminds me of 2009 where open houses would be packed - and properties would sell quickly. There's a similar vibe at the moment.

On the flipside - new/OTP properties.....forget about it. Unless you're a FHB and get some decent concessions (no stamps and the FHOG).....and even then I'd only look to buy in probably Kingston/Griffith.

Cheers

Jamie

 

Pretty accurate summary from Jamie - two speed market. Lots and lots of OTP, oversupply. Existing market from what i hear and see is doing ok.

 

I would have thought there would have been a glut of apartments when they built all the foreshore, but Canberra's population has steadily increased.
Not a fan of units in general, but you're right, I wouldn't mind a well located apartment in Kingston long term.