Where to buy in Canberra 2015

Hello everyone

Been reading this forum for a while and think it's time to Have my first post :)

I am looking to buy an investment in Canberra from my understanding:

Good
1 light rail project
2 population growth in Australia = need a bigger public sector (long term)
3 limited land in the act
4 majority public service makes the makers very bulletproof
5 been flat for the last 3-4 years so it's time?
Bad
1 rental yield pretty low 4-6%
2 high purchase price
3 FHB only in new homes

I was looking into Qld (Kallangur, QLD 4503) but just not sure buying in other states as I have only lived in Canberra.

Canberra suburbs that I had my eye on at the moment:
Watson (cheap for inner North)
Holt (affordabke family home for mid 4 to attract long term tenants)
Kambah (close enough to city or hospital affordable)

Any one got any suggestions? Or should I b looking other states/area?
 
Welcome aboard :)

Inner North all the way - but I'm extremely biased :)

I have my PPOR and office in the inner north.

The market here seems to be picking up though. Was just talking to an agent today (admittedly they always tend to be positive) and she said that interest has picked up a lot within the area.

Dickson should be getting a facelift over the next couple of years - something should happen with the Downer shops too.

Young families are moving in to these suburbs (particularly Downer/Watson) - houses are being knocked down/rebuilt or renovated. All in all - it seems to be gentrifying.

Cheers

Jamie
 
Make sure you factor in rates and land tax into your calcs...they will take a good chunk of your rent..,i would avoid canberra, despite the convenience for you.

Having said that, if you are spending 400 to 500 then i think some of the belco suburbs are pretty good...scullin, evatt, page..holt is ok too but a bit closer might be good for not much more. Like Jamie , im also bias..
 
Good to see my Canberra peeps here.

I first was planning to get a place in downer Reno or rebuild in a few years time but after speaking to builder friend doing a major Reno in a place a old hse may open can of worms.
Hence I'm looking in Belco
Yea I forgot the high land tax in act. Make yield worst again.

I think inner North will surely boom but it will also bring up the rest of Canberra?
Say when inner North median price is 1m surely Belco median will be around 700k them?
 
Yeh i agree a rising tide will lift all boats..maybe not to the same extent though. I think 600+ sqm blocks in inner/middle belco will do ok over the long term...if its zoned rz2 even better. Belco is a pretty sucrssful 'town centre' with all the govt workers etc. tho they are talkin bout moving the 1000s of immigration workers elsewhere... Hopefully they dont

As for land supply...i think there is plenty... Eg molonglo to belco region... Have a look at that 10 year + plan
 
Good to see my Canberra peeps here.

I first was planning to get a place in downer Reno or rebuild in a few years time but after speaking to builder friend doing a major Reno in a place a old hse may open can of worms.

How come? Was he talking about a particular property or just old houses in general?

Ours was an ex govy that's been extended. It was old when we purchased it (but in good condition) and we've pretty much renovated everything. We didn't have any dramas - new plumbing was a bit expensive and there's asbestos removal (which doesn't really cost that much). Apart from that - the house had (sorry to use the cliche) good bones.

Personally - I don't know if you'll make money from a reno/knock down in Downer at the moment. The area seems to be pretty hot - properties get purchased quickly and the last auction result was insane.

You'd really have to pick up a bargain to make it worthwhile because a reno will set you back a bit - and a knock down/rebuild will cost heaps. I just don't think there are any bargains to be had at present.

Cheers

Jamie
 
Welcome aboard :)

Inner North all the way - but I'm extremely biased :)

I have my PPOR and office in the inner north.

The market here seems to be picking up though. Was just talking to an agent today (admittedly they always tend to be positive) and she said that interest has picked up a lot within the area.

Dickson should be getting a facelift over the next couple of years - something should happen with the Downer shops too.

Young families are moving in to these suburbs (particularly Downer/Watson) - houses are being knocked down/rebuilt or renovated. All in all - it seems to be gentrifying.

Cheers

Jamie

I think Jamie's spot on - those areas have bigger plots of land, close to everything, and most importantly, limited supply. In general, I think houses are the way to go.

I don't know too much about it, but I assume the Inner South would be similar and have stronger than average growth prospects.

I'd be a little wary still of newer units - the supply is an ongoing issue in this market and a little worrying IMO. If you are looking into this market, just check out Canberra's new building supply relative to demand ratios - its up there with the worst in Australia. You may be able to nail down suburbs and areas where this isn't an issue - but in some of the newer estates (up north) a supply glut is likely to take a while to soak up.

Cheers,
Redom
 
3 limited land in the act

I'm not so sure about this - but could be wrong. Perhaps its my Sydney bias coming through, but Canberra in general doesn't seem to have supply constraints associated with limited land. Canberra seem to have very large land release potential (Gungahlin, Belco, Molongolo, etc).
 
Very Limited new Land availiable. Land Development Agency (govt owned) has resorted to either a ballot system or Auction System to sell the block it releases. often has 2k registrations for 350 blks avail and of course the best blocks go first.

I like Kaleen/Giralang if you have a budget around 500k as can get decent sized blocks relative to $$$ and close to UC
 
Very Limited new Land availiable. Land Development Agency (govt owned) has resorted to either a ballot system or Auction System to sell the block it releases. often has 2k registrations for 350 blks avail and of course the best blocks go first.

I like Kaleen/Giralang if you have a budget around 500k as can get decent sized blocks relative to $$$ and close to UC

I think thats just government keeping a lid on supply and using their power to control supply/price growth. Flood the market the price drops, keep a sustainable increase that matches demand and there you have sustainable price growth that assists FHOB stay in the market.

Not too sure about Canberra as a whole having limited land (inner north, inner south, other pockets definitely) - the geography means its got plenty of scope to grow it (in all different directions too). Sydney is a good example of land scarcity.
 
I'm not so sure about this - but could be wrong. Perhaps its my Sydney bias coming through, but Canberra in general doesn't seem to have supply constraints associated with limited land. Canberra seem to have very large land release potential (Gungahlin, Belco, Molongolo, etc).

I dont think you know Belco too well - no land to release except some new infill in Lawson. Belco is pretty much done.

But agree, there is plenty of land in other areas.
 
I dont think you know Belco too well - no land to release except some new infill in Lawson. Belco is pretty much done.

But agree, there is plenty of land in other areas.

Definitely don't, apart from some good indian food! I thought there were a few new estates up that way though (Macgregor?)
 
Definitely don't, apart from some good indian food! I thought there were a few new estates up that way though (Macgregor?)

There are two 'new' developments in Belco.

Dunlop has been established more than 20 years - however, a new area near the ponds was developed within the last 5 years, but the suburb is now complete. No new land being sold...its built up to NSW border.

West Macgregor is also complete as far as I know. I havent seen any new building or land sales happening.

There was talk of developing the area out near the old tip, but I cant see this happening as they have just reopened the tip.
 
How come? Was he talking about a particular property or just old houses in general?

Ours was an ex govy that's been extended. It was old when we purchased it (but in good condition) and we've pretty much renovated everything. We didn't have any dramas - new plumbing was a bit expensive and there's asbestos removal (which doesn't really cost that much). Apart from that - the house had (sorry to use the cliche) good bones.

Personally - I don't know if you'll make money from a reno/knock down in Downer at the moment. The area seems to be pretty hot - properties get purchased quickly and the last auction result was insane.

You'd really have to pick up a bargain to make it worthwhile because a reno will set you back a bit - and a knock down/rebuild will cost heaps. I just don't think there are any bargains to be had at present.

Cheers

Jamie

He was talking old houses in general, due to land value inner North South has massive land tax, Inner North would be nice for PPOR/ long term investment but i m currently in belco close to everything 20mins walk to mall and mrs can walk to work also we on 1000m2 block.

Holt was on shopping list coz the west belconnen development. I'm just hoping there would be a tradie family renting long term.
But I agree with not much more evatt scullin can be good buy.

I also think gungahlin are full of investors if u look at amount of rental there r. Even if they have land release I don't think I m interested.

And this year a lot more properties goes to auction too, which waste a lot of time as investor the moment there is someone emotionally involved that's it.. Next auction .... (In saying that I brought my home at auction for close to 5-10% below market
 
There are two 'new' developments in Belco.

Dunlop has been established more than 20 years - however, a new area near the ponds was developed within the last 5 years, but the suburb is now complete. No new land being sold...its built up to NSW border.

West Macgregor is also complete as far as I know. I havent seen any new building or land sales happening.

There was talk of developing the area out near the old tip, but I cant see this happening as they have just reopened the tip.

It may still go ahead. The latest on is that they just submitted a rezoning proposal for ACT and NSW Govt decision.

In the meantime, the Molonglo suburb of Denman Prospect and the Gungahlin suburb of Throsby will be released soon. Source.
 
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