Info on Where to Buy?

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From: Rachel Freedman


Hi
I would really appreciate some hints and tips on where people are buying and what your key considerations are. We have 3 investment props but they were not really well researched (we bought 2 in our home city - Canberra)and while we have done well so far are concerned that we do not put all of our eggs in one basket esp as I never read anything about the Canberra market in investment info and therefore assume people think it is a dud?

Any advice would be appreciated.

RF
 
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Reply: 1
From: Grant P


I don't think Canberra is a dud. I am looking at moving back there by the end of the year. I have also been keeping an eye on the www.allhomes.com.au site. If you find an area of interest, research it and then attack. Personally, I would target areas close to Public Service Offices such as Belconnen, Tuggeranong and Russell Offices/Campbell Park.

Grant
 
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Reply: 2
From: Paul Zagoridis


If you're saying you've done well so far, then I don't think it's a dud. There are always areas and houses whose value grows.

Also investment info is generated to supply readers to advertisers. If it doesn't have advertising then the target is to sell as many copies as possible. There wouldn't be a huge readership for the Mittagong Property Investment Tipsheet.

As for areas, there were three recent good threads:
"Let's Improve the Forum" 5/21/01
"Opinion Poll 2" 5/20/01
"Opinion Poll" 5/17/01

Dreamspinner
 
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Reply: 3
From: Rachel Freedman


Thanks

I read those old ones - even someone who invests in Canberra! Has got me thinking though that Michael mentioned Canberra suburbs that have already increased significantly in price in the last 18 months (Ainslie, O'Connor, Campbell) and I wonder how far they have to go? Maybe this is my mistake as I try to pick areas that are going to improve (Woden/Weston) rather than buying in areas where prices have already increased significantly. It feels a lot more risky to me to buy one expensive prop than 2 cheaper ones (probably why I have not bought in Sydney as 250K plus is a lot of money. Maybe I am doing myself out of longterm capital gains cos I am a scaredy cat?
PS We have just bought our 3rd prop in under 2 years and I really love this forum (keeps me occupied when my 6 month old bub is asleep!)
 
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Reply: 3.1
From: Steve G


Hi Rachel!

I think you can probably ask the same question about prices in Weston - the market there is crazy at the moment. Property in the area has certainly increased in value. A recent revaluation of our place in Waramanga gave us a 50% capital gain (well, actually its 49.6%, for the pedants!) in 3 years.

Steve Goodman
 
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Reply: 4
From: Rachel Freedman


It makes you wish that you had bought 10 Canb props 3 years ago doesn't it!!! I remember buying my house in Tuggers 7 yrs ago and my friend bought in Ainslie for $20,000 more - I thought she was silly....needless to say I have learnt a lot since then!

We have made good money on both our props here but think that Weston Creek still has a way to go while Farrer has cooled off a bit which is why we were thinking of selling it and using the profit to pay off our own mortgage and then using increased equity to buy another IP elsewhere. But in a way I don't want to sell as we have a great tenant. Decisions...

Re family and IP's ....it is so frustrating trying to HELP anyone who just does not understand , is too risk averse (catatonic!), thinks there must be something in it for you (to try and help them you must benefit somehow??), wants some sort of personal guarantee of profits etc then gets jealous and says how LUCKY you are when you do well!!!
 
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Reply: 4.1
From: Cathy Baxter


Hi

Discussion on how good Canberra is now is all well and good but just think back a few years.

When little Johnny was elected and started sacking look what happened to the market. There were some great capital losses, especially for those that decided to jump rather than get pushed out of Canberra. I heard stories about people who were walking into banks and just handing back the keys because the value of their homes had dropped way below their mortgage. Great for the bargain hunters but it took a fair few years for any gains to be made.

It's a market that has great peaks but just as great troughs. Risky i reckon.

Just my 2 cents.

Cathy
 
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Reply: 4.1.1
From: Rachel Freedman


Yeah Cathy you Canberra Basher!! :)

Canberra is the best!! Well I am feeling a bit defensive..I love living here and would never go back to Sydney in a million years! Soo... we just have to wait until everyone else realises it and then the Canberra market will explode!!!! On second thoughts you can all bugger off, I like Canberra just the way it is! :)

Rachel
 
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Reply: 4.1.1.1
From: Grant A-Y


Rachel,

I have two IPs in Canberra, in Kaleen (one bus to town). I have done well buying DHA properties, but not from them, on the market where the seller is very keen to get out. This means that "live in" owners can't buy at that time.

Another investor I know in Canberra has listed Chifley, Aranda and Cook as his current preferred areas.

Remember the benefits of buying in Canberra: money back in the same Fin year for Stamp Duty and legals. Great for your cashflow!

Grant A-Y
 
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