Spence - ACT

[craigb]

some areas i want you to look at, higgins, charnwood, holt, macgregor, kaleen, evett, those are my belconnen guesses,
for southside, kambah, its huge, and wanniasse, calwell, narabundah, their are some older ones on the narrabundah side ," not the redhill side," other areas are Queanbeyan, i am talking 3 beddies , on land this will allow you to rent other rooms as well to cover the mortgage, these areas soon will be catching up to the others as urban sprawl, continues , good luck, i dont like the units as they are depressive, very, and have no, value adding options, so if you could get in to somthing on the ground and rent two rooms out as well then sit tight and ride the wave, BTW, you might be able to convince the other tennents to help you with some painting, deck building, and bbq construction,

 

[gg1965]

Craig is correct. a 3 bedroom ex-govvie home in kambah can cost you around 370-380k. This is on about 700-750 sq metres.

You can value add to this, even stick a granny flat out the back, and possibly increase your rental income. You cannot do that with an apartment. Plus, you are saving on body corporate costs as well (which may cost you about 1500-2000 per year).

An ex-govvie house is so easy and flexible to renovate too (and you'll also get a separate dining room).



g

 

[chb]

like this? http://www.allhomes.com.au/ah/ah0073?slid=167388580

I put in an offer about a month ago for a home in Kambah but it's just crazy there as well at the moment. Wouldn't be surprised if it went for 30-40k over what was listed. Alot of ads these days say + and in the current market....there's not too much that you can actually get a place that costs 370k.

Thanks for the advice guys and I understand what you're saying and think the same thing as well. I think if I was more game i'd pay a bit more and do up an older place but on my first attempt I don't think I want to do reno's yet and want something that will be stable and won't break down for the renters. As long as there's the property wave in canberra this 3 bedder townhouse won't drop below 330k and hopefully will ride the wave as well

 

[gg1965]

Funny you mention that specific house in Kambah.

My friend looked at it for exactly the same reason as you are - ie FHB but with the view of doing a reno on it. That particular house currently has tenants in it until Jan next year so you'll get immediate income from it.

One thing though, that big tree out the bank (you can see it in the main photo) is what they call a "remnant eucalypt" and it is probably about 100 odd years old - and the local government won't let you knock it down.

This limits the reno potential of this house - plus, it is rather dangerous as you cannot remove this tree, and as anyone with experience of eucalypts know, they have a tendency to drop their branches every now and then. So this has obvious insurance issues too.

My friend was serious about this house and was at the stage of asking the insurance companies about the situation with this tree but i think he pulled out of the sale before that. But we were discussing this issue over an ale of two and came to the thought that if the insurance companies made it difficult to insure because of this remant eucalytp, then he should seek written communications form the local government to subsidise his insurance and to confirm their liability in part if anything happened because of the tree. But he pulled out of the sale before any of this. I do doubt the government would come to the party on that though but it would be interesting to try.

So whoever does buy this house will have that issue to content with.



Thanks


g

 

[chb]

I plucked that house out because it was the only one on the list that was 370k heh

I didn't realise it was currently rented. Any idea how much that would have rented out for?

I wouldn't have even thought about issues such as the tree and insurance :/ I didn't think they came out to look at your home when you sign up for insurance? Wouldn't you be able to just report that a tree branch fell on your house?

Also, out of curiosity.. what would happen if you chopped down the tree? Also, would anyone even notice, other than the neighbours?

 

[gg1965]

The insurance company may ask you to prune the tree back if there is any danger of it dropping a branch. You are correct, most times, insurance companies won't even look at your house before they insure you, but if you make a claim about a branch dropping onto your house, then they may advise you to chop it back at a later date.

Also, if a branch feel and hit someone underneath it, then your insurance company may insist that you "re-examine" the need to have the tree. BUT, if the government has heritage listed the tree, then you are unable to cut it back or chop it down.

If you were to suddenly chop the tree down yourself, and the government found out about it, then you could be fined an amount that may go well into the thousands. Do you know the story of the guy in Qld who chopped a few trees down so that he could see the water from his house, well he got nabbed and had to pay something like 15k or so.

As for the rent in that house in Kambah, i think it may be rented for something like 340 or so per week. Don't quote me on that though but it will be in that ballpark figure.

If you are interested in that house, just be mindful that the neighbours are a grouphouse that play rock music loudly during the day and they string up a huge aussie flag over the door of their garage as a way to keep the sun, or peering eyes, out.


Thanks


g

 

[craigb]

there was a post on nine msn, today about rising prices and the new" BOOM" i also believe this is almost here, saying the avg price is at about 470k so i can,t see any falls soon i would get on the wagon and enjoy the ride , it might even be for a good 9 months, dispite the FHOG, its only a manner of time before we see other articles on ACA, and the like which will see the "boom" continue, ?
my opinion on it,

 

[chb]

Will be going through with the purchase in Spence so this house might have to wait

Never heard the story about the bloke in QLD......rather unlucky .... i'm surprised that the house rents out for 340.....its amazing how much people are willing to pay in canberra.

kambah was voted as boganville in canberra wasn't it??

 

[craigb]

somthing to remember, way back on the prarie, when us oldies, only had horses, and no cars.

not realy we had cars, My wife and i bought a 3 bed gov home in Rivett in 92 and we paid 95k for this little home, we had comments like your mad and how could people pay those rediculas prices, and the prices will fall, yada, yada, yada, we too were worried as finding $150 per fortnight, was some sort of imposable goal, lol
now hearing the same "talk" about 300k and 400k its just as bad, and just as scary, , but time will heal the price you pay.and things do get better.

soon you to might post about others talking the same way and think of this post whilst they take the plunge buying their first home for 800k and you will look back and sigh, some relief too!

 

[gg1965]

.soon you to might post about others talking the same way and think of this post whilst they take the plunge buying their first home for 800k and you will look back and sigh, some relief too!

I don't disagree with you Criag as this seems to be the pattern of things and as history shows, it is the way things will most likely go...

BUT - and a big but (and no, not the one you see at the shops in the tracky dacs), i cannot see how prices for a 3 bedroom ex govvie house in Kambah can rise to 800k without the wages going up in a similar fashion - and i cannot see that happening too quickly either.

There was an article in yesterday Canberra Times that quotes some guy from the HIA in saying that the house prices have to fall - because of the old adage, that they are too expensive when compared to our annual incomes. Otherise, we'll have generations of Aussies who will be not be able to have their own home.

So what will give - what is the outcome?

Either way, i am still strategically buying places because there is still a housing shortage and i cannot see any government assisting in the extra 30k houses required per month. As everyone knows, wheen there is a shortage in the market, then the prices will go up and this is what is happening (in addition to the record low interest rates etc). So it looks like we will have generations of aussies who cannot afford to buy there own home - or have multigeneratioanl homes (as they do in most parts of Asia). Besides, what government will be willing to let people's homes drop in value to a figure of what this guy was saying - ie 25-30%.

Interesting probem though.



g

 

[Canberran]

Another thing to think of the property

Hi chb,

As this property is one of a small development, you may talk to the agent see whether the developer/owner still keep some of the developments.

If yes, the owner basically control the Body Corporate. You will not have say in the BC meeting.

Also totally agree with others, Houses in Higgins, Evatt, Melba, Kaleen, even Charnwood may offer better value.

http://www.allhomes.com.au/ah/ah0073?slid=167386833

Cheers

 

[chb]

Interestingly enough, responding to gg1965,

I've had a lot of recommendations to buy a house/home at the 370K+ range because well the capital gains potential is higher(true) but i've already calculated that it would be 330k for say 340 a week rent or 370k for 350-360 a week rent before spending more on reno's. I find 330k could potentially be a struggle already on income so how are you guys doing the whole buying and renovating thing while being able to afford it? Are you guys earning a whole lot more(i'm on 60k)? Or just more savings?

I agree that the government won't let housing collapse..it's too important in the australian economy. There seems to be this mentally going around that buying a house _is_ an investment and great for money making rather than a home so I think when that mentality is there, the housing market won't ever go down(with government support)

As for buying the deceased estate and doing reno or knock down rebuild..I don't see how I could afford it
Are you going to the auction? Would be interested to know how much it goes for...i'm guessing around 250k?

 

[craigb]

believe it or not, the same articles were being written when homes were 100k,