Getting hands dirty In Canberra? Or clean in Brisbane?

Hi all! If anyone has an opinion on investing in Canberra or Brisbane, I would be most grateful for your thoughts.

I've just moved to Canberra, for a possible 12 month to 3 year stay. (Army wife!)
At this stage we have one property in Brisbane with approx $100 - $150k of equity (depending on valuation to come through) and I think we could organise a loan for between $400-$500k for our next purchase.

In a perfect world, I would like to get my hands dirty and try a small renovation, buy renovate and hold. And as it's likely we will be moving to a number of different cities/ states over the next 5-10 years, I thought this might be a good strategy to keep repeating everywhere we go! But I'm a bit nervous about investing in Canberra in it's current market with the funds we have available.

I've read through some of the previous posts about Canberra, and it seems that there may still be some opportunities closer to the city, but I don't think our budget will stretch that far. I'm wondering if an older style villa/duplex (late $300k - $420k range) in the middle ring (Weston Creek, Woden?) might still be good investments? From what I can work out these areas are not flooded with new units? I'm going to really start researching the market this weekend with a list of open houses to visit!

On the other side I was thinking Brisbane would be the better investment and within our budget, it is where I grew up and I know the market better. But with a part time job and motherhood, travelling to Brisbane to find the investment (and organise a renovation) may be quite the challenge. Unless I utilise a team? Buyers Agent, Project Manager etc.

Our first property has just been a sit and watch property, but now I want to really move things along and start the learning curve! Any thoughts on either approach?

Thanks!! :)
 
Hiya

Canberra is a funny market at the moment.

It seems there's a spike of activity for $500k+ properties in Woden/Weston at the moment....and I think that's largely due to Mr Fluffy payouts now occurring.

I wouldn't bother with new properties (but it doesn't sound like you're keen on these anyway) because the market is flooded with them.

Personally - if I was doing a buy, reno, hold and had a budget of $400k I'd look for a detached house one of the Belco or Tuggeranong suburbs. Something that's on a decent size block and in need of some cosmetic love - landscaping, flooring, painting, etc.

Cheers

Jamie
 
Jerra and Queanbeyan are cheap at the moment, and there are plenty of opportunities to get something older with a decent block and do a cosmetic reno.
 
Hi all! If anyone has an opinion on investing in Canberra or Brisbane, I would be most grateful for your thoughts.

I've just moved to Canberra, for a possible 12 month to 3 year stay. (Army wife!)
At this stage we have one property in Brisbane with approx $100 - $150k of equity (depending on valuation to come through) and I think we could organise a loan for between $400-$500k for our next purchase.

In a perfect world, I would like to get my hands dirty and try a small renovation, buy renovate and hold. And as it's likely we will be moving to a number of different cities/ states over the next 5-10 years, I thought this might be a good strategy to keep repeating everywhere we go! But I'm a bit nervous about investing in Canberra in it's current market with the funds we have available.

I've read through some of the previous posts about Canberra, and it seems that there may still be some opportunities closer to the city, but I don't think our budget will stretch that far. I'm wondering if an older style villa/duplex (late $300k - $420k range) in the middle ring (Weston Creek, Woden?) might still be good investments? From what I can work out these areas are not flooded with new units? I'm going to really start researching the market this weekend with a list of open houses to visit!

On the other side I was thinking Brisbane would be the better investment and within our budget, it is where I grew up and I know the market better. But with a part time job and motherhood, travelling to Brisbane to find the investment (and organise a renovation) may be quite the challenge. Unless I utilise a team? Buyers Agent, Project Manager etc.

Our first property has just been a sit and watch property, but now I want to really move things along and start the learning curve! Any thoughts on either approach?

Thanks!! :)

Heya,

Welcome!

I'm a big believer in building assets in markets that are likely to move over a shorter time period - so I do some macro research and apply some reasonably guestimating of where I think markets are at. One quick look through the forums will tell you the Brisbane seems to be a reasonably popular market right now.

I'd pick putting my money in Brisbane over Canberra if your searching for shorter term returns.

If you do go for Canberra, as Jamie touched on, steer clear from new stock - Canberras supply glut will drag on for years. Your investing strategy will probably rule this out anyway. As I tell any Canberra investor, take a look at the supply data of new stock and make your own judgements. If possible, get the data broken down by region as this may help narrow down your search parameters.

Cheers,
Redom
 
Personally - if I was doing a buy, reno, hold and had a budget of $400k I'd look for a detached house one of the Belco or Tuggeranong suburbs. Something that's on a decent size block and in need of some cosmetic love - landscaping, flooring, painting, etc.

Jamie

Regarding Belconnen, be aware that is possible the Immigration offices may relocate in the next 6-12 months. If that happens, it could affect property prices and rent there, as it would mean a few thousand public servants working elsewhere in Canberra.
 
Regarding Belconnen, be aware that is possible the Immigration offices may relocate in the next 6-12 months. If that happens, it could affect property prices and rent there, as it would mean a few thousand public servants working elsewhere in Canberra.

Where are they heading to Shorty?

Cheers

Jamie
 
Cheers for the input, and link to the Belconnen article. Realising I've still got a lot of research ahead of me if I go ahead with the Canberra option.

Also forgot to mention that I'm limited to purchasing a 2 bed (or 2 bed + study) if I invest in Canberra, as we are in a currently living in a Defence Rental 3 bedroom entitlement with subsided rent. We would lose these benefits if we own our own home here with 3 bedrooms (even if it's an investment). No limits if we go for Brisbane. I guess that's why I was thinking of the older villas/duplex, but I guess I'd be competing with all the other brand new units...
 
Jamie, they are going, but where is anyone's guess.

My money is on Brindabella park.

I wouldn't have thought Brindabella Park would have room for an organisation of that size. I'd also be very suprised if they abandoned Customs House in the city.

My company does work for both Customs and Immi, and I'd say the merger will take a long time.
 
Well bank valuation of our current property came in $45k lower than expected, so my Canberra investment dream may be harder to achieve than first thought. I think my lower budget might make Canberra a bit of a stretch after all. Time to crunch some numbers again, but I think it's one more tick in the cons side - making Brisbane the more appealing choice (for my budget anyway)
 
Well bank valuation of our current property came in $45k lower than expected, so my Canberra investment dream may be harder to achieve than first thought. I think my lower budget might make Canberra a bit of a stretch after all. Time to crunch some numbers again, but I think it's one more tick in the cons side - making Brisbane the more appealing choice (for my budget anyway)

Perhaps try a couple valuations from other lenders if your able to move around Mlink.
 
Well bank valuation of our current property came in $45k lower than expected, so my Canberra investment dream may be harder to achieve than first thought. I think my lower budget might make Canberra a bit of a stretch after all. Time to crunch some numbers again, but I think it's one more tick in the cons side - making Brisbane the more appealing choice (for my budget anyway)

Which lender was it with?

What were you expecting and what did you get?

What's the current loan amount?

Easiest option is to shop a couple of valuers and see if you can get a better result.

Cheers

Jamie
 
Woden has been a bit silly lately, and Weston Ck not far behind. But it's still chalf and cheese on the day and on the street - a structural reno just waiting to happen on the weekend auctioned for $750k when I thought $700k, and a little further down the road was an reasonable, already-reno'ed house that auctioned for $620k when I thought $680k+. I don't think I am that wrong in my home area...

Tuggeranong has had influx from Human Services and is likely to stay now for some time. Gunghalin is probably too new for reno's, but is getting a new influx from a dept. very soon.

At your price point, a mid-ridge property in Tuggeranong may be best, but could be hard to find as a 2-bedder (perhaps Kambah?).

But I'd agree with Redom that if you're after CG, there seem to be parts of Brisbane that will be quicker than almost anywhere in Canberra!

Having said that, I believe a flip can succeed pretty much anywhere as long as you do it right.
 
Which lender was it with?

What were you expecting and what did you get?

What's the current loan amount?

Easiest option is to shop a couple of valuers and see if you can get a better result.

Cheers

Jamie

Jamie the value came in at $515, I was hoping for something above $550k. (Excuse typo above saying $45k instead of $35k) I'll be in touch with my mortgage broker today to see where I sit with the lower value. The valuation was done through CBA. I didn't realise you could get another valuation through a different bank, so I'll discuss that with him, thanks for pointing it out.
 
Woden has been a bit silly lately, and Weston Ck not far behind. But it's still chalf and cheese on the day and on the street - a structural reno just waiting to happen on the weekend auctioned for $750k when I thought $700k, and a little further down the road was an reasonable, already-reno'ed house that auctioned for $620k when I thought $680k+. I don't think I am that wrong in my home area...

Tuggeranong has had influx from Human Services and is likely to stay now for some time. Gunghalin is probably too new for reno's, but is getting a new influx from a dept. very soon.

At your price point, a mid-ridge property in Tuggeranong may be best, but could be hard to find as a 2-bedder (perhaps Kambah?).

But I'd agree with Redom that if you're after CG, there seem to be parts of Brisbane that will be quicker than almost anywhere in Canberra!

Having said that, I believe a flip can succeed pretty much anywhere as long as you do it right.

Thanks, yep I agree about the better CG in Brisbane - but I want to be more hands on with the investment which is why I'm considering Canberra. I had a look at a Townhouse in Rivett and Weston over the weekend, both had block sizes of 400sq, but they were very small inside and not sure I could get a decent return on them after a reno. Will look a bit further afield for houses as you say Tuggeranong or Kambah, and see what I can get for similar money.
 
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