House and Land package around Canberra to live and future growth

Any locals have any recommendations? Working in Canberra for next few years and will probably convert to Investment property afterwards, Also as a first home buyer/builder are there more incentives in NSW or ACT and in regards to holding cost difference between ACT/NSW? Budget around 500-600K

 

Forget H&L packages, just expensive, small blocks etc. There a plenty of good older houses in established suburbs that fit your budget. If thinking kids remember that while NSW residents can access ACT schools etc, they do not have guaranteed access to their preferred school. There are moans about this every year. NSW residents have a longer commute depending on where you are working. For a PPOR you will generally be better off close to where you work. From the IP point of view you will get better rental income in the ACT.

 

any suburbs or examples that are good to live in and have decent upside in the future within our budget? In Melbourne it always made sense to invest in a 3 bedroom house with good land component so potential for rebuild or subdivision, does the same apply in Canberra?

 

If looking north side, Belconnen is where you will find things in your price range. Most probably areas like Latham, Charnwood or Holt. For South side you will be looking in Tuggeranong or older parts of Weston Creek.

My choice of suburbs are suburbs developed in the late 70's - early 80s. You get reasonable sized blocks in spacious surrounds including sports fields, underground power, well established green spaces, generally good schools and often pre-schools. Houses of this period tend to be simple but have generous rooms sizes, are built on piers rather than a slab which simplifies plumbing changes but have copper pipes, upvc drains and good quality electrics. The houses are generally brick veneer and you benefit if you spend a few thousand to upgrade insulation - blow in wall insulation and thicker ceiling batts. For some reason people do up houses and don't retrofit decent insulation.

So you understand where I am coming from, I am retired so I buy run down places for cash and slowly renovate while tenanted - they get very cheap rent. My current project is in Latham and in just over a year have added about 15% value after renovation costs are added in and I get rental income that does a little better than term deposit rates on the money I have in the project.

 

Try kambah in t h e south it's gentrified a fair bit has large blocks excellent access to all town centers and is only 15 mins tops into the city if you get a good run. Underpriced and virtually Weston creek without the price tag.

 

Are you sure its not just better to rent instead and invest elsewhere when you are ready?

 

In that budget definitely take a look at Latham, Holt, Higgins, Charnwood, Flynn and the northern suburbs or Tuggeranong.You might be able to improve the house when living in it the next few years and have it ready to rent out when you leave. As an IP, your end cashflow position will be better in Canberra than Sydney most likely and capital growth will probably average around 4% pa the next 3 years, in my opinion.