I'm new. Is this a good buy?

Discussion in 'What to buy' started by Dingus, 9th Jul, 2019.

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  1. Dingus

    Dingus New Member

    Joined:
    28th Apr, 2019
    Posts:
    2
    Location:
    Canberra
    Hi all,

    I don't really know much about property investing except what I've read on these boards. I've heard that Canberra is a pain because of Land Tax, and you need to factor that into investments. I've been suggested this property in the ACT. How do I know if it's any good?

    69/53 McMillan Crescent, Griffith ACT 2603 - Apartment for Sale
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    Two observations
    Body corp high
    Big development
     
    TMNT and Lindsay_W like this.
  3. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Ideally you need to determine WHY you're investing in property, what are your investment goals? Otherwise you'll be posting here every time you have a property in mind - you need clarify what you're looking for, this will make it easier for you to determine what properties suit you and your end goal.
    Who suggested this property to you and WHY?
     
  4. Todd

    Todd Well-Known Member

    Joined:
    16th Oct, 2016
    Posts:
    298
    Location:
    Canberra
    How do you know if it's any good?
    - Read through the last several years of body corp minutes and you will find out a lot about the building, the committee, the sinking fund balance and if there have been any major issues with this block
    - As per above, does it fit in to your personal goals - what are you trying to achieve by purchasing this property?
    - Body corp of $700/quarter is actually quite low for Canberra, however land tax and rates are very high in the ACT. Factor in all these costs and so your final sums. Yield seems attractive but once you do the numbers it might not be
    - Look up previous sold units in this block and nearby, is it over-priced?
    There are several threads on Canberra if you type in Canberra in the search section. There are some experienced Canberra investors who have posted and nobody expecting capital growth in the next few years, myself included, for units/apartments in Canberra.