ACT New Land Release - Belconnen / Holt

Discussion in 'Where to Buy' started by Ash, 4th Apr, 2017.

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  1. Ash

    Ash Well-Known Member

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    Hi Gurus ,

    @sash @Connor @MTR @Cactus @ashish1137

    I came across this new land release in ACT in Belconnen Area. I did quick research and found this area is not good for CG but yields are around 4.x%. I am in sydney but understand that ACT has got limited land to build and limited land releases as well.

    https://ginninderry.com/sales/current-releases/land-release-1/

    I would love to hear back from all of you about your thoughts on this land release and HL packages.
    Summary from me:

    1. This area is not so desirable in ACT to live
    2. Vacancy rates were more than 2% in last 12-24 months
    3. Population growth is not too great in last few years.
    4. Most importantly : A new H&L will be pricey on small block as compared to old on larger block so not sure it makes sense. ( although this will be true for all new H&L)
    5. This is approx 19 Km from CBD which is far by ACT standards.
     
  2. dabbler

    dabbler Well-Known Member

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    Canberra has a lot of land around it and has had a lot of dev going on.

    If not much CG and 4% return and no land tax threshold, does not appeal to me ☺
     
  3. Connor

    Connor Well-Known Member

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    Hi Ash

    I can't really give you an informed opinion on an area and market that I don't know. But when putting together any H&L deal, some important factors I look for are:

    - Jobs, current and future employment in the area
    - Current and future infrastructure (both Gov and Private spending)
    - Desirability, people wanting to live in the area, growing population
    - Affordability and potential for growth
    - Ability to manufacture equity during land acquisition and build
    - Holding costs/yield min 5% on cost

    There's more factors than these but they are my non negotiables... If I'm not satisfied with these I just move on to the next opportunity. I would put vacancy rates up there but they can be skewed sometimes in newly developing areas.

    Hope this helps
     
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  4. Cactus

    Cactus Well-Known Member

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    Agree with this 100% I'm even a bit lazy in comparison and put the most weight on affordability and distance from less affordable. As I am lazy and don't have the time to spend researching new areas I also stick with if it ain't broke don't fix it. Melb outer SE is starting to become fairly unaffordable IMO so whilst I continue to build and sell and keep what I have put that way I'm no longer buying. Areas like Greenvale and Craigieburn are becoming fairly unaffordable so again I don't even really bother looking. My zone at the moment is Rockbank. I'd be happy to buy in Werribee and Wyndham Vale too but I can't buy everywhere.
     
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  5. S1mon

    S1mon Well-Known Member

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    How much do you think a standard 4x2 would cost to build?
     
  6. larrylarry

    larrylarry Well-Known Member

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    @Ash cant find any more deals in Victoria? Why ACT?
     
  7. Cactus

    Cactus Well-Known Member

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    4/2/2 20sq roughly $200k plus another $10k in turnkey costs.

    That said I am building a 4/2/2 20.8sq for $180k with led stone blinds landscape exposed aggregate driveway etc. so can definitely do better or worse.

    Edit: Melb pricing.
     
    Last edited: 5th Apr, 2017
  8. mcarthur

    mcarthur Well-Known Member

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    In the ACT?! Take the Sydney price, Melbourne price, Hong Kong and New York price, add them together, and that will be the Canberra price IF you could find a tradie who will turn up...(mutter mutter mutter)
     
  9. Ash

    Ash Well-Known Member

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    @larrylarry I have started from wrong side (Sydney) so will take sometime to reach VIC. Just came across so thought will ask here what people think of ACT.

    @Connor
    - Ability to manufacture equity during land acquisition and build

    Here you mean to say land will appreciate by the time you finish your build and keep build cost competitive.

    But in any case your new H&L will be pricey compared to old house in same suburb with same land component ? So why anyone will but new ... I guess more depreciation and more rental is the answer ?

    Is it better to buy old house in same suburb ?
     
  10. S1mon

    S1mon Well-Known Member

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    i doubt it would be too far off 300k to build a reasonable 4x2 landscaped. money is probably made in the land given its a draw and not auction. nice out there near the river. so if you got lucky and early in the draw you could get one of the 300 sqm for say 220k, so 500k all up. what would it be worth? no idea..
     
  11. Connor

    Connor Well-Known Member

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    Yes, it comes down to picking the right area and estate where there is high buyer activity and demand. If you got the factors I mentioned previously right, then the land should increase in value. Also shop the builders. Get the best value you can but don't compromise on quality.

    Again, depends on the area. But also it really comes down to the deal your are doing. I always ensure that the finished product comes in well below other comparables at the time of purchase. Any growth between then and completion is a welcome bonus
     
  12. Cimbom

    Cimbom Well-Known Member

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    That made me laugh so much :D

    On that note, I remember hearing that the big volume builders generally start at ~350k for their smallest/most cheapest plans and go up from there.

    I would never buy a house and land package or new build in Canberra - no value for money.
     
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  13. Ash

    Ash Well-Known Member

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    Thanks All for your inputs.

    I have zero knowledge of Canberra so thought will ask and seems its not worth :(
     
  14. Cimbom

    Cimbom Well-Known Member

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    Don't limit yourself to new builds. For the same price as what you were thinking of (650k+ once everything is paid for) you can buy a very nice existing house instead. Have a look on Allhomes.com.au to get an idea. This would buy one of the nicest/biggest houses in our suburb in central Belconnen (only 3 sales above this price in the last 2 years) which is 9-10kms from the city. We are currently getting 6% yield although you need to account for land tax as well
     
    Last edited: 6th Apr, 2017
  15. Cimbom

    Cimbom Well-Known Member

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    Back in Canberra!
    mcarthur likes this.
  16. Nemo30

    Nemo30 Well-Known Member

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    I think there is potential but I would do a lot of research and know the prices well.

    Some considerations

    1. The general area used to be the land fill site for Belconnen. .. not sure they are actually building on the tip site but will affect ppls perception of the area.

    2. The is a large electrical substation

    3. Holt is generally considered a lower priced suburb ... however its not a bad suburb to live in. Parents lived on the gold course there for 20 years and loved it.

    4. While it may be further from the city I dont see this as an issue. Many people work in Belconnen. 5 -10 minutes away.

    5. New Macgregor, across the road, was established a few years ago. I had similar concerns about that development and people have done well out of it.
     
  17. S1mon

    S1mon Well-Known Member

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    i think you'll find they are house and land, not even canberry is that expensive

    Our Flexi-living Series house and land packages are unique to Ginninderry and are aimed at giving a high level, sustainable and stylish home at an affordable price.

     
  18. Cimbom

    Cimbom Well-Known Member

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    Oops, I guess that makes more sense. Article is not very clearly written
     
  19. Mooze

    Mooze Well-Known Member

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    How close to the sewerage works is it?
     

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