Rent or buy in Act ? Syd market ?

Discussion in 'Where to Buy' started by mingling, 10th May, 2009.

  1. mingling

    mingling Member

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    I need a temporary accomadation in ACT for 3 full year from Jan 2010 to Dec 2012 then will head to Sydney in Jan 2013.

    Should I buy a 3 bedroom house or rent one in ACT for the period of 2010 to 2012 ?

    I will eventually settle down in Syd,looking at Jan 2013.

    You think I should plan to buy 1 in syd between now to 2013 ?
    Have the price of residential property in Syd gone up or stagnant ?
    I am referring to Macquarie park and surrounding suburb.

    appreciate your point of view and sharing.

    Pls be nice with me as I do not live in Aust to feel the market sentiment.

    Cheers,
    Ming of Singapore
     
  2. craigb

    craigb craigb

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    :D Welcome to Canberra , i think you should buy in the act, because when you start staying here ,, and realise the quality of life , you wont want to go to any other city in australia.:D
     
  3. Propertunity

    Propertunity Real Estate Buyers Agent

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    Hi Ming of Singapore.
    3 years is really too short a period to be sure of making gains in any real estate market that you buy into. Minimum time to consider is really 5 years if you plan to buy in 2010 and sell when you leave in 2013. The transaction costs to buy & sell are simply too high for short time periods.

    If it was me (and it is not), I would buy in Sydney now and rent it out to tenants. I would rent in Canberra for the 3 years temporary stay. Ideally, if you had the funds, I would buy in both Canberra & Sydney now and keep both, staying in each city in your own place and not selling either.

    Units in Macquarie Park reached a peak in 2003 of nearly $AU 400K. For the next 3 years they fell each year to reach a low of around $AU 325K in 2006. In the next 2 years, 2007 & 2008 they rose and are still rising to be around $AU 370K at the end of 2008.

    I trust you enjoy it in both places. Canberra can get really cold in winter - not at all like Singapore - bring warm clothes.:D
     
  4. craigb

    craigb craigb

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    When you get the warm clothes, don't take them to sydney, the people on the streets might rob you for them.:D
     
  5. BV

    BV Think outside the square

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    Craig
    and why would they do that?
    They don't need to wear polar clothing :D
     
  6. craigb

    craigb craigb

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    It will protect them from the hail and rain, Oh and soot!:rolleyes:

    Be carefull, i might know some people down here that might make up some sort of cleanair tax or somthing, lol Ha! Ha!
     
  7. Canberran

    Canberran Member

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    Buy in Sydney and rent out.

    Rent in Canberra.
     
  8. mingling

    mingling Member

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    thanks all for your sharing. cheers !
     
  9. Jas

    Jas Vice-Poohbah

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    There's an assumption in some of the replies that you will need to sell the property in order to purchase in Sydney. Is this true?

    In terms of tax, you are better off purchasing an IP and then renting out a place to live. However, there are people (myself amongst them) who like having the ability to remodel their house occassioanlly - which means buying a PPOR.

    I'm guessing the long term plan is to have a number of IPs and a place to live. Provided you can find a place with good capital growth, or the ability to add a twist (or whatever your investment strategy is), you should presue that. To my way of thinking, whether that place is in Sydney or Canberra is a secondary question.
     
  10. BEACHPERMIE

    BEACHPERMIE BEACHPERMIE

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    Finding a Rental Property in Canberra

    Following in Ming's footsteps, we've been researching the buy vs rent option in Canberra.

    We'll be relocating from Sydney in 1Q 2010, one of us working in Weston. Not sure how long we'll be based in Canberra, at least 2 yrs. We own outright in Sydney and will rent it for upwards of $650pw. All advice we've received matches most of the posts I've read on Somersoft - rent out Sydney & rent in Canberra.

    We spent last weekend driving around, starting Inner South (where you can rent a run-down, poorly maintained 2-bed shoebox for $600) & moving out to Woden & Weston Creek (where you at least get 4-beds/2-baths for the money). Haven't looked Inner North yet, that's next trip.

    I see there's a Canberra based group of Investors on this forum, and I would love to hear from you - any and all advice appreciated. You've already made me aware of LiveIn Real Estate, whom I intend to contact. Perhaps there are other, more direct routes to securing a rental property that you may be able to educate me on.

    Thanks.
    Beachpermie
     
  11. Francesco

    Francesco Member

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    Check Allhomes.com.au yet?
     
  12. gg1965

    gg1965 Member

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    Personally, I'd aim to buy in Canberra if i were you (thats if you are in a position to do so). The reason being, is that i just hate the thought of paying up to 500-600 per week to someone else. Plus, you can always keep the place you buy as an IP for when you move back to Sydney.

    But if you are looking for a rental, then i strongly suggest that you try and secure one before Christmas. The Jan/Feb period is very very hectic in the rental markets as you are competing (and i mean competing) against many thousands of other people. It is a very cut throat time.

    If you are going to be working in Weston, then i suggest the following areas:

    - anywhere in Weston Creek (Craig's domain)
    - Woden Valley (places like Curtin, Hughes, Lyons, Torrens, Pearce, Chifley, Mawson, Farrer and maybe even Isaacs)
    - Kambah, Waniassa
    - Cook, Aranda

    The above areas will give you an easy 10-15 minute drive to work.

    We are talking about Canberra though, so if you are prepared to commute for about 30 minutes then the Gungahlin or Tuggeranong areas will even do.

    Do both of you have a separate car? The reason i ask is that if not, then the carless person may find life very difficult without a car as the public transport in Canberra is not what is should be. If you are only a one car family, then you may want to try and find a place within walking distance to a major shopping precinct - ie Weston Creek, Woden etc. This is very pricey though.

    Good luck


    g
     
  13. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    I'd buy in Sydney and rent a room in a sharehouse in Canberra. Pay $150 p.w for the room, the savings you generate can be used for a 2nd IP somewhere. Unless you're coming over with a partner or family - then scrap that idea.
     
  14. Francesco

    Francesco Member

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    What about Rivett and Stirling which are way closer to Woden than Aranda and way more affordable than Red Hill. Transport is not too bad if you are living near a shopping centre such as Cooleman Court in Woden, but expect to take at least twice as long to reach the office, eg 15 minutes by car becomes 30 minutes by bus.
     
  15. gg1965

    gg1965 Member

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    Rivett and Stirling are in Weston Creek and I already mentioned anywhere in Weston Creek.

    I wouldn't recommend Red Hill for anyone who is just starting out in Canberra.


    Thanks

    g
     
  16. craigb

    craigb craigb

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    :D the eye's have it, in my opinion best value for money for the next 2 years is to be able to capitalise on the new weston precint, don't buy in it but purchase somthing next to it, as the new homes get built yours will appriciate, i would expect (going out on a limb here) 15% <25% increse within the two years, so starting from the closest burb, Weston,holder,duffy,steirling,rivett, fisher, chapman:D,warramanga, good hunting ,
     
  17. BEACHPERMIE

    BEACHPERMIE BEACHPERMIE

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    Thank you Francesco, g & Mortza,
    Allhomes.com has been a great site (wish it was replicated across other cities!). Your comments re: suburbs & transport are noted. We will have a car each, so that gives us some flexibility. We'll start to look in earnest very soon, and I'll check back here to seee if you have any other suggestions. Cheers,
    Beachpermie
     
  18. BEACHPERMIE

    BEACHPERMIE BEACHPERMIE

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    Thanks Craig,
    We were very surprised at the level of knockdown/rebuild activity going on in the Inner South area, and you're right, the building bug is catching and spreading. Certainly no shortage of money in Canberra! Who are these people? The article in last weekend's Times was informative, but scary too!

    We've been somewhat surprised at the lack of quality of housing in general, both for sale and rent. Very few properties 'stand out'. It seems that vendors don't see the need to tart their properties up prior to sale, assuming they'll achieve the sale price they want without spending the money. Which is fine in terms of opportunity to add value, but says a lot about the highly competitive marketplace. For example, we saw a property at Yarralumla (11 Loch St) - $800K - targeting the developers, is that how it works? Versus 15 Cornelian Place, Lyons which is going to Auction this weekend (21/11/09), which is beautifully presented and will likely exceed vendor's expectations

    I'm simply afraid of the set-up costs of purchase, without knowing how long we're going to be in Canberra.

    Does anyone have any advice on how to get over that mental hurdle?
    Beachpermie.

    Beachpermie.
     
  19. craigb

    craigb craigb

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    OK ! the 800k place in yarralumla is simly a knock down and re- build , the UCV on this block would be about 680k <780k so if this place is removed and replace it will be competing with the others at 1.5 mill +

    Lyons is a good burb and the homes are newer about 1970,s ish the UCV would be about 380k to 450k and allow 180k for the home , do some more recerch in the allhomes site , i have said its the best site for property but those that dump on canberra dont realy know , it will show street sales top 50 sales , median prices and whats listed and what has sold in the last 10 years,

    the inner north and south are big money , then woden weston and inner belconnen, then we have the burbs, still 30 mins from 1 side to the other , great roads, if you want come around to my home and i will tell all i know , about what you might want, i am in chapman, ;) pm me happy to assist other SS ers