Casey, ACT

[Jamie M]

Just wanted to hear the thoughts of fellow Canberran's (or those investing in Canberra) on the newish suburb of Casey in Gunghalin.

I know it gets it's fair share of criticism due to the size of the blocks, narrow roads, etc but being wedged in between Nicholls and the soon to be developed Springbank Rise area, I have a feeling that Casey will do well over the coming years. The prices in this area already seem quite high - and people are continuing to buy.

There's an apartment development (45 two bedrooms units) on David Miller Cres that's scheduled for completion in July 2012. The price for one of these units seems reasonable ($339k for the cheapest). I can't think of any other development in Canberra where 2 bedroom apartments (which seem to be decent quality) sell for less than this. Granted, the suburb is quite far out (which justifies a lower price) but $339k for a 2 bedroom apartment that's not due for completion for two years sounds like a decent deal to me.

Oh, and if nothing else is developed in front of them, they'll have a few of the Telstra tower that all Canberran's seem to get a kick out of

Maybe I've missed something.....but this seems like a decent deal to me.....what do others think?

 

[rugrat]

We are building our IP in Casey. I must admit that we have coped a fair bit of critisism from other "investors" for building an IP out there. Some have flat out laughed at us and told us we were stupid and should have bought / built elsewhere. Honestly though, I don't see what their hang up is though.

We signed contracts back in July 2009 - completion is scheduled for Feb 2011 (build time has blown out by 12mths). Our Purchase price $418,000. For a (115m2 living) 3 bed, ensuite, DLUG on 408m2 block. Bank Valuation 3-4 months ago was $445,000. I would suggest it was a bit more then that now - just have a look at other similar properties on the market. Our expected rent when we signed was about $440 p/w; Our expected rent on completion would be closer to $500p/w.

Casey is a 3 min drive to Gungahlin, is right next door to Nicholls, which has some pretty decent public and catholic schools within walking distance. There is the golf course 2mins drive away (15min walk). Gold creek is 3 min drive, Belconnen is 15mins down the road, as is civic. All the land up behind Casey is scheduled for future development - so the are going to be more suburbs further out. It was (when we bought) cheaper then Bonner or Franklin.

I think part of the hang up is about the land size - but that is what you are getting in all of the newer estates, unless you are paying a hell of a lot more then my budget can afford.

Only thing to be wary of is that the majority of the units do seem to have been sold to 'investors' so you may find a fair bit of competition if you are trying to source tenants at the same time - then again Canberra has a less then 1% vacancy rate, so it may not be a problem??

I am happy we made the decision to purchase there - not so happy that it has taken an extra 12months for the house to be built, but at least we aren't paying any money until we actually settle: feel more sorry for all those people making draw down payments.

 

[Tanqueray]

I think it would be ok. I live and invest in Canberra, but I look more towards the large blocks in central locations.
Im not too sure what Gungahlin's going to do in the next 5 years, you may need to hold that for a while to see some significant capital gains.

 

[Jamie M]

Thanks for the response Rugrat.

It's my first venture into the OTP world. Guess we'll just wait and see how it goes. Sounds like yours is doing pretty well

Tanqueray - I'm hearing you. My last purchase sits on a 900m2 block in Calwell (not quite central). I think the demand for these types of properties will continue to be strong - especially when considering the size of the blocks in newer estates.

 

[recruit2]

Canberra still has huge legs I reckon, exciting times for sure. The economy is going gangbusters and that equates to continued strength in the public sector and regular pay rises for those guys and plenty of well paid contractors.

Geographically Canberra is still really quite convenient regardless of where you live, so what is happening is the classic sprawl where places that are considered semi far today, will be considered quite close in the future.