Thoughts on Canberra and the ACT

S1mon said:
Imo house prices will drop over the next year or two...decreasing rents showing no signs on stopping (yes a general view)...Jamie might correct me, but that has to lower investor activity/demand.

Hope im wrong...time will tell
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No - I agree.

I don't have any stats but it feels like (from my perspective anyway) that investor buying has dropped off a bit. Most of my local clients are a combination of first home buyers (lots who are settling on OTP purchases) and those upgrading.

Cheers

Jamie
 
rohan22no said:
He also said that older stand alone houses (think older suburbs of belconnen etc) he predicts will be in higher and higher demand in the future, as all thats getting built now are either apartments, townhouses, or houses on tiny blocks that look the same as every other house in the street (crace, gunghalin etc).
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My PPOR is in one of the Belconnen suburbs you mention and it's rare for properties to be on the market for more than about 2-3 weeks or so before selling - even now. It's pretty great value compared to other Australian cities for a house on a big block less than 10kms from the city. There's a lot of room for growth IMO
 
Up to a million mark properties is slow, this is the upgrader, the middle management that get hit hard with the PS cut

but 1.5m plus is holding and selling fairly well.
I don't know much $500K and under
 
Slightly off topic, but has anyone seen the recent allhomes rentals for Canberra? I have never seen so many places available for rent, especially apartments. It seems to me that vacancy rates in the last few weeks have doubled. What do others think?
 
geoffw said:
I'm not so optimistic about short term growth. Dropping rents, even for quality houses, will have some effect on prices in the investor sector at least IMO.

However others disagree.

Canberra house prices set to rise during spring
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It is true that Spring is considered the best time to sell or rent. Is this why in the last week or so everyone seems to have put their place up for rent eg. Allhomes? I don't think that house prices will rise in Spring.
 
yeh ive never seen so many for rent on all homes...doesn't look as many now, but when i was looking the other week, so many had the 'new price' text. apartments are still coming online from pre sales before the glut...hopefully they stop building them (i.e the development next to Jamison plaza where they couldn't sell so are going to build large townies instead)
 
S1mon said:
ive got PPOR and an investment. the investment is an ex govvy in belco....what i hate is the rates / land tax. 4k a year when rent is 20k ish....i know you may say thats small relative to potential cap gains..but still...dont think i would buy another in ACT again for that reason..(plenty of other good areas)..no doubt rates/land tax will continue to rise at excessive rates to pay for that silly cho choo train....
l
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Simon, I agree: land tax is too high. And apparently it's about to go higher. It turns some people off investing in Canberra.
 
I'd hate to think of how much those inner south IPs are costing in land tax PG :eek:

Still great investments though.

Cheers

Jamie
 
300+ new props for rent since last Friday. I think the rental market here will struggle for sometime.

I do not know long term, but short to medium terms looking not good for investors.

Just my opinion, I own some properties in Canberra. And I am not confident about the Canberra market since a couple of years ago.

I do not know where some of the people's confidence from: High vacancies, dropping sale prices, more land releases(north), more infill housing (along Northbourne Ave), higher land/council tax.

I will not buy untill I see some sign of recovery.
 
It will turn. It always does.

When Canberra's population consisted mostly of Commonwealth public servants, it was an artificial environment: it was not at the whim so much of external factors but rather of the government of the day. As the population increases to include private sector workers, it becomes self-sustaining. We are then more likely to follow the national trends in housing. They are my thoughts anyway.
 
cimbom said:
My PPOR is in one of the Belconnen suburbs you mention and it's rare for properties to be on the market for more than about 2-3 weeks or so before selling - even now. It's pretty great value compared to other Australian cities for a house on a big block less than 10kms from the city. There's a lot of room for growth IMO
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Hi,

I have to disagree with this, we just bought a standalone house on a big block in Belconnen, it's also been fully renovated but was on the market for over six months prior to us buying. There are several other big houses on big blocks in Belconnen that we walked through that have also been on the market at least that long.

I think it'll take something 'extra' for people to buy at the moment. For us it was a reno'd property, vender willing to negotiate combined with the fact our repayments will be lower than the rent we were paying on a shoe box in Bonner.

I hope things improve as a new Canberra owner but I wouldn't hold my breath.

Kassy
 
Me again...

I do agree that Belconnen is underpriced for large home/blocks compared to other Canberra districts with similar houses/blocks. I'm not a born and bred local...
 
property_girl said:
Simon, I agree: land tax is too high. And apparently it's about to go higher. It turns some people off investing in Canberra.
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no doubt...much better off popping over the border into NSW (at least if you havent already got 400k or whatever the threshold is worth of land).

My land value (auv) went down 3% this FY...but my land tax bill was up over 11%...ridiculous...compound that rate for a few years and it will be extortionate :mad:

no wonder so many IPs are negatively geared...ill let the federal govt know to blame the state as to why their tax collections are down
 
S1mon said:
no doubt...much better off popping over the border into NSW (at least if you havent already got 400k or whatever the threshold is worth of land).

My land value (auv) went down 3% this FY...but my land tax bill was up over 11%...ridiculous...compound that rate for a few years and it will be extortionate :mad:

no wonder so many IPs are negatively geared...ill let the federal govt know to blame the state as to why their tax collections are down
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but in time it be easier to sell your properties and get better price as people don't have to pay stamp duties on it :)
 
roe said:
but in time it be easier to sell your properties and get better price as people don't have to pay stamp duties on it :)
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We still have to pay the dreaded duty unfortunately. For IPs we're able to claim it as a deduction though.

Cheers

Jamie
 
Do people have any views on the developments going up in Wright?

I've been having a bit of a look. Looks like it could be a decent location once its all finished (close to woden, civic).
 
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