Advise on GUNGAHLIN, Canberra Pls
- Thread starter wealth101
- Start date
I'm not actually a big fan of a lot of Gungahlin. Lot sizes are frequently very small and streets are narrow. I'd suspect that high yields may be at the expense of capital growth.
I have a DHA property in jerrabomberra which had a 9 plus 3 year lease- they took up the extra three year option. It expires in June this year. DHA want to extend the lease now. Three years with no improvements or nine years if I upgrade the property.
That would indicate that there will be a continued long term demand on Jerra and perhaps Queanbeyan. I'd be suggesting that there is a future for property there. Yields may not be as good as Gungahlin initially but the growth may well be good.
I'm not ramping. I have one single house in the area and there appears to be a strong interest from DHA. So that may warrant further investigation.
I have a DHA property in jerrabomberra which had a 9 plus 3 year lease- they took up the extra three year option. It expires in June this year. DHA want to extend the lease now. Three years with no improvements or nine years if I upgrade the property.
That would indicate that there will be a continued long term demand on Jerra and perhaps Queanbeyan. I'd be suggesting that there is a future for property there. Yields may not be as good as Gungahlin initially but the growth may well be good.
I'm not ramping. I have one single house in the area and there appears to be a strong interest from DHA. So that may warrant further investigation.
Beat me to it Geoff-
Gungahlin is certainly a new estate and is becoming increasingly popular, particularly with defence members who can obtain some rental assistance to rent there. I considered purchasing there a year ago however, the lack of substantial public transportation between Gungahlin and the "downtown" areas of civic was a consideration - I had friends who lived there and know that the daily commute was a nightmare.
Personally I elected to purchase in Queanbeyan as it is deceptively closer to Civic, Woden and other "concentrations of workers" and can be cheaper then buying in ACT. It does have a reputation as being "the poor bums area" but there are areas which are ok to buy in. Be wary though that it is technically in NSW so may have other land tax etc. issues for you; but certainly an option to consider anyhow...
Regards
C
Gungahlin is certainly a new estate and is becoming increasingly popular, particularly with defence members who can obtain some rental assistance to rent there. I considered purchasing there a year ago however, the lack of substantial public transportation between Gungahlin and the "downtown" areas of civic was a consideration - I had friends who lived there and know that the daily commute was a nightmare.
Personally I elected to purchase in Queanbeyan as it is deceptively closer to Civic, Woden and other "concentrations of workers" and can be cheaper then buying in ACT. It does have a reputation as being "the poor bums area" but there are areas which are ok to buy in. Be wary though that it is technically in NSW so may have other land tax etc. issues for you; but certainly an option to consider anyhow...
Regards
C
Hello,
Working in the real estate industry in Canberra, I can say that Gungahlin would not be suitable for investing in at this stage.
My reason is that there is too much supply, but not enough demand. If you go to www.allhomes.com.au you will see that there are dozens of houses there for sales, all very similar on small blocks. As nice as new houses are, you would be much better (in my opinion) considering purchasing in Belconnen, where the blocks are much bigger and there are more ameneties. Hawker for example has 3 levels of schooling and a small shopping centre and is 5 minutes away from Westfield. In some cases the houses there have doubled since 02-03.
In Dunlop on the other hand, many houses have not moved up in value since they were built because there is just far too much competition.
The case is similar when it comes to renting, and it would be harder to get a premium price.
I hope this information was useful.
- Danners
Working in the real estate industry in Canberra, I can say that Gungahlin would not be suitable for investing in at this stage.
My reason is that there is too much supply, but not enough demand. If you go to www.allhomes.com.au you will see that there are dozens of houses there for sales, all very similar on small blocks. As nice as new houses are, you would be much better (in my opinion) considering purchasing in Belconnen, where the blocks are much bigger and there are more ameneties. Hawker for example has 3 levels of schooling and a small shopping centre and is 5 minutes away from Westfield. In some cases the houses there have doubled since 02-03.
In Dunlop on the other hand, many houses have not moved up in value since they were built because there is just far too much competition.
The case is similar when it comes to renting, and it would be harder to get a premium price.
I hope this information was useful.
- Danners
I tend to agree that compared with Gungahlin, Belconnen suburbs are more attractive for investment at this stage. The ACT govt has released land for multiple suburbs in Gungahlin within a few years, hence too much supply in a short time. Land development is still continuing in multiple suburbs. There is a wide selection of new properties. The saving grace is demand from the ADF renters. If there is any foreclosures in the ACT it should happen in Gungahlin, which may provide the opportunity of a low-price entry and CF+ property.
Belconnen suburbs on the other hand are established with less new landed properties. If you are after new/recent houses rather than apartments then Bruce may be your best bet. I do not like westside suburbs such as Dunlop, Charnwood, MacGregor, but then that's my opinion. A number of forumers have also mentioned in other threads that they do not like one or more of these suburbs. But rationally, these suburbs are further away from the amenities, eg hospital, shopping mall, city and government departments. Of course, Bruce properties being closer to amenities will also be priced higher.
If you look to the southside of Canberra, there are not too many new houses for investments. They may be new houses in Banks and Gordon, but they are considered too far from amenities in Tuggeranong town centre. Close to the town centre are new/recent apartments in Greenway and could be easy care investments if the figures add up in this low interest rate climate. I have not looked closely at them but the apartments are certainly close to amenities, some govt departments, college, mall and transport.
Hope this helps.
Also new development coming on late this year much closer to the city center at Molonglo (between eastern/southern belconnen and northern Weston Creek). I know a lot of people who are waiting for this release rather than buying at Gungahlin, but that's more of a lifestyle choice (closer to recreational facilities and other amentities)
