Spence - ACT

Hi All,

Just looking for some feedback about the Spence area in Belconnen. Does anyone live here or have heard much about this area?

I recently committed(haven't put in deposit or signed anything yet) to a purchase which I can still pull out of. It is for an off the plan townhouse in a complex of 10. In my mind, it makes sense to me seeing as I would be eligible for the $21k FHOG but the fact that the living room is 3.6 x 4.3 is a major downside. I don't think you can even fit in a dining table and this is the only "free" space in the 2 story townhouse.

Upstairs is 3 bedrooms and 1 bathroom albeit I can make it 2 rooms instead of 3 to give more leisure area but I plan to rent it out.

My issues would be the potential to rent it out seeing as it is 15 minutes from Belconnen, there are lots of apartments going up in the town centre, the extremely tiny rooms and living room.

Purchase price is $332k. What do you guys think?

Don't really have any personal experience with Spence - sorry.

But you should definitely shop around as part of your DD, there are heaps of H&L packages around to choose from and compare with (particularly with the living space being so small). Obviously Allhomes is a good place to look to compare - but also check out www.villagebuilding.com.au They have quite alot of packages in quite a few suburbs.

Who is the H&L package through?

My concern, having lived and worked in Canberra, is that Canberra-ites have very artifical views about distance. I lived in Flynn at one stage and worked in Civic, and the number of "wow, you live all the way out there" remarks I got was, to my ex-Sydney mind, amazing. I only commuted 25 minutes!

That said, Canberra also has a transient population who considers 25 minutes a gift, especially if it means living in a house instead of an apartment. I guess my feeling would be to try and get local vacancy figures - don't go by territory averages necessarily.

I think the owner is developing it. Knocking down 2 houses for it and it was either RBC constructions building it or RVC.

I have had a look at allhomes and I realise the newer areas seem to be Dunlop, Macgregor, Casey, Bonner but they do seem quite far out. Spence seems to be roughly the same distance between Belco Town centre and Gunghalin.

It is a tough decision, there's alot of wot if's involved and it's hard to tell whether prices will go down, stabilise or grow after 31/12/09.

lol deejay i know what you mean. I am probably guilty of being one of those that think everything is too far! But I live 5 minutes from work, so it's hard not to tease alot of people

Have a look on All Homes and check out what the other rentals in spence are going for and if there is anything comparable.

rugrat said:

Have a look on All Homes and check out what the other rentals in spence are going for and if there is anything comparable.

Click to expand...

There's only 2 things listed under Spence unfortunately and they're for houses. I have a feeling these units will be one of the first units to be built in Spence as well. Not much to purchase in and around Spence as well, really hard to tell.

yep spence is a fair burb, close to university, town cntr, and civic cntr, there is planning to upgrade the run down town cntr at belconen mall, and this will make it like a new westfeild, infrostructure "spells'? is great in most of canberra, and buying off the plan will allow the years increses to assist you, you might also see some of the 41% price increse that old magregor and higgins just recieved as its in the locality of the new macgregor sites, in fact if you could afford it buy two,

First time doing attachments
hope it works
Bed 1 = 3.2 x 3.3
Bed 2 = 2.8 x 3.3
Bed 3 = 2.8 x 3.3

Living = 4.3 x 3.6

Spence is not a great suburb. It is far out as well.

The size of the unit is too small based on the plan. You may be able to find better value closer to Belconnen Town Centre. Houses less than 400k have a better value than a small townhouse @355k for a long term investment.

Get rid of third bedroom and add some living space won't help you with the rent.

Just my 2c.

I bought a 4 bedroom ensuite place in Evatt (the next suburb) for $402k 18 months ago. I would think that you would be able to buy an existing 3 bedroom house in Spence (and/or surrounds) for not much more than the $332k you'll be forking out for a new (but pretty small townhouse).

You'd only get the $14k fhog, but probably better roi in the long run IMO.

Keentobuy said:

I bought a 4 bedroom ensuite place in Evatt (the next suburb) for $402k 18 months ago. I would think that you would be able to buy an existing 3 bedroom house in Spence (and/or surrounds) for not much more than the $332k you'll be forking out for a new (but pretty small townhouse).

You'd only get the $14k fhog, but probably better roi in the long run IMO.

Click to expand...

You would be lucky to pick up a four bedder for $450k nowdays (most cost more), and most (although not all) 3 bed start at about $350k. Canberra is definitely still a rising market IMO. The truth is that there will always be better deals around - the question is can you find one at the time you are trying to buy?

Personally this unit isn't something I would buy, but then I like houses. I don't think it would neccessarily be a bad investment though - depends on what your overall strategy is and what it will rent for.

Thanks for the info guys. I think i'll stick with this. Measured out the rooms a few days ago and the rooms seem livable. Have a room mate living in a room now that is of similar size and he fits in everything ok.

I can't see the price of the townhouse falling below 330k so i'm going to take the plunge!

CHB, i think that doing nothing is the only way you could fail , in this market, and i might add that RUGRAT, is giving some good advice, of late, sounds like her homework is paying off,

I agree with the other comments sayingthat Canberra is a rising market, and plus, anything that is relatively close to the unis, the shopping centres and proximity to the inadequate bus service is also a plus.

One thing though with the design of this place, I think you have implied that the living room is the only open living space and from the plan, it looks that the living room is also the dining room - the place where you put a table. This will make your living room even smaller.

It is a small plan and one that i couldn't live in. But i have a lot of stuff.

I have seen similar plans for "off the plan" puchases that are currently for sale in Dickson for the high 300ks (for a one bedroom) and early 400s for 2 bedrooms (and no space for a dining table). Fancy paying over 400k for an apartment that has no specialised dining space - even for an open plan, it is small.

FWIW - there are also off the plans apartments going up in Curtin but i don't know what the actual floor plans for these places are. Curtin is an ideal suburb as it is close to Woden, close to Civic and also has its own Coles and also good biking distance to ANU.

Even though i look at off the plan packages, i don't get excited about buying any nor am i really interested in them. I just look at them to see how much they are and what teh designs are. I am like Rugrat in that i prefer houses. You can do more with them and I personally think, that in the key Belconnen/Civic/Woden circle, that houses will appreciate more (and you have no body corporate worries).

My thoughts anyway.



Thanks

g

I know that you guys may be right in the fact that the place is tiny. Definately need to mount the TV to the wall and get a smaller couch. My main concern is will this place be worth 330k next year and will people rent it and I feel that having a look around, there isn't anything in that price range for a 2-3 bedder anyway up in that area, even macgregor is looking expensive albeit you can get homes rather than townhouses. Rental in the closer areas to Belconnen town centre range from 380-430 for a 2 bedroom so i would imagine there would be some groups that may decide to go for the cheaper rent and live a tad further so hopefully rental would be close to $350 a week for this 3 bedder even though it is tiny.

I do agree that i'd hate to live there....so would most likely find another place after i satisfy the FHOG I would imagine the Curtin off the plan units would be roughly around 400k so is a bit out of my price range. The Canberra market is just insane. I saw some off the plan units in Theodore down south for ~$370k for a 1 bedder!

I don't know how anyone can justify those prices, they'll have to keep those payrises going

I have long held the view that Canberra is too expensive and not sustainable (for what you get).

As a first home owner, i would really hate to be paying 350-400k for a small 2 bedroom apartment - just to get into the property game. Then hope to sell it and trade-up so that they can have a family. If not, imagine trying to raise a family in these places that FHB are paying 400k to get into.

I just hope that they can sustain these mortgages.

I am glad i got in the market years and years ago. Cannot imagine trying to get into the Canberra market as a FHB now.



Thanks


g

I hear that all the time from my older colleagues at work.

A few had regrets not making some purchases earlier in life because they were too scared to take the plunge. While the rest were "I can't believe that place rents for that much" "A 2 bedroom is how much??!?"

I wonder as well how people can sustain those 400k 2 bedroom apartments. I was close to buying one in Greenway near the towncentre for 420k just a month ago and could not justify buying it. It had a great location, great size but only 2 bedrooms. Rents are about 410 a week now in that area but i was thinking....would people really rent a 2 bedder for 430-450 a week?!? Insane if they do.........

Hi CHB,

I assume that you are a FHB, can i ask, how much of a deposit do you have and what type of monthly (or fortnightly payments) are you expecting?

I'm curious to see what numbers the first home buyers in Canberra are playing with.

Thanks


g

I am indeed a FHB.

I have roughly 10% of my own savings with my parents able to help me for the other 10% to avoid the LMI. Haven't been able to save much while paying the crazy canberra rents but I guess I shouldn't make excuses since I do get to go on a holiday this year

I'm expecting fortnightly repayments of roughly $1050 inclusive of the normal body corp, council rate, water rates, land tax. If I could rent out 2 rooms at minimum $100 a week each that'll bring repayments to about 600 a fortnight. Minus the rent i'm paying now it'll be a few hundred on top of what i'm already paying. That is probably worse case scenario with interest rates at 7ish%.

As long as I did the calculations correctly :/