All Topics / General Property / Thoughts on Canberra

Viewing 20 posts - 1 through 20 (of 23 total)
  • Profile photo of akyboyakyboy
    Participant
    @akyboy
    Join Date: 2003
    Post Count: 9

    G’day,

    Being new to investing, I was hoping that you could provide some insights into investing in Canberra.

    Are the prices inflated in Canberra?
    Are there areas to avoid in Canberra?
    Are there areas to pursue?

    Basically any info (related to investing) would be ideal.

    Thanking you! [:D]

    akyboy!

    Profile photo of dreamergirldreamergirl
    Member
    @dreamergirl
    Join Date: 2003
    Post Count: 15

    Hi Akyboy

    A great person to comment on this would be Bill (BillfromOz). But personally, I’d say that prices are over inflated here. I don’t necessarily see them falling but then again I (now) know they have before.

    If you want +ve cf then Canberra is not the place to buy. Best I’ve seen wouldn’t break even for several years. But I’m only a rookie, so perhaps I’m missing something.
    Sam

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day Akyboy…

    Canberra is a good place to purchase a family home and hold…but don’t expect to buy in the last legs of Bull Run and make a quick profit. The time to have invested in Canberra recently was when nobody else was game to…’94/95.
    Family home, you buy when you need to provide long term security for yourself and family.

    Are the prices inflated in Canberra?… Very much!
    Are there areas to avoid in Canberra?… All ACT
    Are there areas to pursue? …………Not in ACT

    It would not take much research to confirm the above. Canberra is a volatile market and runs to the extremes in Bull and Bear Markets.Even the top suburbs will come off 10%. Others 15% to maybe even 25%… just as it did in 1994/95.
    You have little choice but to wait 2-3 years for Canberra to be a good Investment again.

    That will include Qbn and any town within an hour or two of ACT, as that is the market that feeds the others.

    Be patient…Hold if owned for a year or more, but don’t buy for investment Today!

    Bill

    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

    Profile photo of luckyoneluckyone
    Member
    @luckyone
    Join Date: 2003
    Post Count: 148

    Hi,
    This is really aimed at Bill. Do you happen to know what happens if you have a line of credit and prices drop? Can you get a margin call as with shares if the price drops significantly?
    Thanks,
    Luckyone

    Profile photo of akyboyakyboy
    Participant
    @akyboy
    Join Date: 2003
    Post Count: 9

    G’day BillfromOz,

    Thanks for the info.

    My/our strategy is not for quick gain, rather for something that is neutral/positively geared which could reap rewards in the long term.

    Given your information, I think we will steer clear of Canberra.

    And the gold question, where should we be looking? [:I]

    akyboy

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day Luckyone..

    I very much doubt it. In 1995 many home owners in areas like Banks etc, owed more than the house was worth. The Banks knew this of course. But could you imagine the panic if they had called in loans or looked for Mortgagors to reduce debt?

    They simply sat it out. That is not to say, that if you are heavily exposed with a LOC, that you may not get a friendly call from the bank. But to answer your question…I think you’ll be okay… not like a margin call on Shares.

    Cheers

    Bill

    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day Ackyboy…

    Anywhere in Aussie…I will sit it out and buy better around 2005, Canberra included.

    Bill

    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

    Profile photo of MalPMalP
    Member
    @malp
    Join Date: 2003
    Post Count: 23

    I agree with Bill, if you had bought 12 months ago, heck even 6 months ago, you would be doing alright. But right now, with talk of interest rates going up one must think that any price increase here at the moment (say, land in the new Gungahlin areas going up from $210k to $240k which is ridiculous for 500sq metres) must be temporary.

    Sincerely,
    Mal

    Profile photo of HueyHuey
    Participant
    @huey
    Join Date: 2003
    Post Count: 213

    I’ve been looking around for a house in Woden/Weston, Fadden areas in the last few weeks. I’m really shocked! They are all unbelievably expensive. The prices are inflated especially those in the low end. I have a feeling that investors jumping in to buy properties just in any condition in a hope that they can renovate and sell at a higher price few months later one. I’m not sure about this. They make it hard for 1st home buyers.

    Cheers

    Huey

    Profile photo of HueyHuey
    Participant
    @huey
    Join Date: 2003
    Post Count: 213

    I just saw an ad for an apartment identical to the one I sold recently, in the same building, at the same position, 2 floor up. The asking price is $180K more than what I sold for. [:O]

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day Huey…

    Let’s see it sell before you give it any credibility.

    Courtesy of Shaun Walker…I have stats from The Canb.Times. I will analyse in detail but the Sat. rental columns have grown from 36 on June 7th to 45 on Oct 25th 2003…. an increase of 25%.

    I think you’ll be pleased you sold Huey.
    The other seems like a “Clayton’s Sale” to me.. keep track of it please. You sold..but will they?

    Cheers

    Bill

    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Hi everyone,

    Thanks for the thread, as they say.

    Akyboy, your question has been answered so I won’t repeat. But it raises other questions.

    A good question on the LOC Luckyone, as it’s of interest to me. I had figured on aiming to get a LOC on my PPOR while the values are still high. The purpose of course to have cash in reserve for a future opportunity. I would however need to achieve more than the recent bank valuation after debt consolidation to do so. 80% in my case would require an extra $25K in the valuation.

    Bill, I understand all that you have said. However, are you suggesting that a “friendly call from the bank” could occur when dropped values push the LVR above 80%? If so, I only see two options. Either a forced refinance by the bank back to P&I or sell up.

    Regards, Phil

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day LuckyPhil…

    The Bank will not make contact with you provided you are meeting your committments. All I was saying was.. that if you are “heavily geared” to the tune of several 100k… and values did come off in the order of 20-25% over time(as they did in ’95)they “may” keep an eye on you.

    Banks can call up a loan for many reasons LOC or P&I…but choose not to do so.They don’t want to spook the masses. They were entitled to call up loans in the suburb of Banks in ’94/95 when debts exceeded values… but of course they didn’t.

    Cheers

    Bill

    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

    Profile photo of shaunwalkershaunwalker
    Member
    @shaunwalker
    Join Date: 2003
    Post Count: 403

    For bill.
    glad to have been of help. the national library is a great place for all that type of info. i will go in once a month and do the numbers for you. I didnt really see much difference when i was doing it as i was probably doing the numbers wrong. to get 25% increase, did you average the numbers for each month then average those numbers against the amount of months (ie the 4 months worth i gave you?)
    enjoy.
    shaun

    Profile photo of luckyoneluckyone
    Member
    @luckyone
    Join Date: 2003
    Post Count: 148

    Hi Bill,
    Thanks for your reply, glad to know I’m safe from a margin call. Anyway, back to work, another long night ahead :).
    Thanks,
    Luckyone

    Profile photo of akyboyakyboy
    Participant
    @akyboy
    Join Date: 2003
    Post Count: 9

    quote:


    G’day Ackyboy…

    Anywhere in Aussie…I will sit it out and buy better around 2005, Canberra included.


    Hi Bill,
    I’m a bit confused by this reply. Are you saying that good property deals exist anywhere in Australia or are you saying that you wouldn’t buy anything now and would wait till 2005?

    akyboy

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day Akyboy…

    I’m saying, that personally, I will not buy Real Estate anywehere in Aussie today.

    By 2005 maybe some areas including Canberra could be considered. If you bought a year or more ago Hold. I’m simply saying that it will prove to be profitable ,if you are patient and leave the R/E market alone for now, if you haven’t already bought.

    You make your profit when and where you Buy!
    Cheers

    Bill

    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day Shaun…

    Taking the past 20 Saturdays, there has been 36 columns on average each Saturday. The lowest was in june with 24 columns…the largest last Saturday at 45 columns….87.5% increase from the low to last week.

    Preferably add two Saturdays ie. Sat 1 + Sat 2 = an average of 30 columns. Then add Sat 2 and 3 = an average of 29..1+2 2+3 3+4 4+5 5+6 etc and take the average of those two Saturdays.

    In doing so this smoothes it out and you get a low of 29 Columns in June and a top of 43 for an average of the past two Saturdays. Realistically an increase of 14 columns on 29 in June… best part of a 50% increase.

    I took a lot of samples and at best/worst the Rentals in the ACT have risen by a staggeriung 25% minimum in the past 4 months.

    I’ll put money on it… more than 40columns this coming Saturday…give me your odds.

    Cheers

    Bill

    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Bill

    Hi mate,

    Given today’s interest rate rise, I reckon you are on the money. Won’t be surprised to see another big hike in rentals avail by the end of this month. Makes RRs sound more attractive than ever.

    Phil

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    All you Canberrans that don’t read the Soap Box, we are having a get together at Olims Pub – now taken over by Mercure I think at 2pm on Saturday 22nd November.

    Cheers
    Mel

Viewing 20 posts - 1 through 20 (of 23 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.