IP @ Belconnen, Canberra

Discussion in 'Where to Buy' started by tester, 17th Jun, 2015.

  1. tester

    tester Member

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    I am looking at option at Apartment (2 bed, 2 bath, 1 Car space) which is 86 sqm living plus 30 sqm courtyard.
    It is on ground floor and 1 year old. It has Pool and Gym.
    Starta fee 3356 per year.
    Currently rented 480 per week.

    Total purchase cost would be 435000 inc stamp duty.

    Can i please have your valuable thought on it.
     
  2. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Owner occ or IP?

    Doesn't sound like a good investment to me.

    I'd search for a detached house in the surrounding burbs instead. You may need to beef up the purchase price a bit - but long term you'll get a better return from a house rather than a unit in Belco IMO.

    Cheers

    Jamie
     
  3. Shahin_Afarin

    Shahin_Afarin Finance Broker

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    Has the canberra market picked up or is it still struggling?
     
  4. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    In some areas - and for certain properties, it's picked up heaps.

    My suburb is going crazy :)

    The demand for houses in established areas is pretty strong. A lot of it is driven by the Mr Fluffy buy back and a general lack of decent stock coming onto the market.

    There's still heaps of OTP stuff available - but the demand isn't as strong for those.

    Cheers

    Jamie
     
  5. Azazel

    Azazel Member

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    Most suburbs in the places I've been looking in Canberra are taking off (houses). I'm not that familiar with the outer North though.
     
  6. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Yep - inner North seems to be going nuts.

    Just had a look on allhomes - one property in Downer was listed for $620k+ sold for $760k.

    Another 3 bedroom ex govy looking place in its original condition just sold for $657k. It would have went for $550k - $570k this time last year.

    I've got a number of clients actively looking to purchase within the area - but everything that gets listed either sells quickly or goes to auction and gets bid up much higher than expected.

    Cheers

    Jamie
     
  7. S1mon

    S1mon Member

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    sounds like a terrible idea....so many apartments in belco...so many available for rent....more coming online still (the tallest building in canberra just starting)....high strata...and if it you had to get new tennants in 480 realistic?

    houses in well located suburbs are getting strong sales
     
  8. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Good advice - this dude is in the know when it comes to the area.

    Cheers

    Jamie
     
  9. cimbom

    cimbom Member

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    Wow, the prices have really fallen. We were considering buying a new apartment when we were looking for our PPOR just under 2 years ago and were told by REAs that we'd be lucky to get a 1 bedder with study in that area for the same price range. Now they're selling 2 bedders with 2 bathrooms for the same amount :eek:

    I agree with the others that it's not a good idea. You can get a house in a suburb right near the Belco town centre for a bit more money.

    Lol I might wait another two years and pick up a new three bedder for 400k :p
     
  10. Nemo30

    Nemo30 Member

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    I live in that area and agree with the others, bad idea.

    Huge oversupply of units.
     
  11. C Stewart

    C Stewart Member

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    What about the rest of Canberra? There seems to be a lot of new supply (apartments) coming on in the south as well, Kingston, Woden, Wright, Coombes etc.

    Do people think the oversupply of apartments is true across almost all of Canberra?
     
  12. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    I do - with possibly the exception of Kingston.

    Cheers

    Jamie
     
  13. Redom

    Redom Mortgage Broker

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    I've just been hunting for rentals - there's quite a bit to pick from. Kingston and Barton and Inner south in general seemed a little tighter than other pockets.
     
  14. andrewtfarr

    andrewtfarr Member

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    Bit off topic but isnt Kingston a great area now? The waterfront is awesome...have seen it develop over the last 20 years, only visiting once a year and the change over the last 5-10 has been phenomenal!!!
     
  15. geoffw

    geoffw Untitled

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    Oversupply has been affecting rental demand as well. Rents have lowered and are unlikely to stop yet.

    I did see a report today that the prediction for Canberra housing is for a small drop over the next three years, not only in units. It says that on top of the oversupply of units, the lowering of demand due to a smaller public service will also have an effect.