Evening ladys and gentleman,
I am a farily well travelled stock market investor trying to convince myself of the benefits of property investing! Im very keen just a little scared of jumping off the cliff for my first IP. I am looking at off the plan apartments and units in the ACT (Gungahlin area) and was hoping for some advice, yay or nah.
I feel as thow the ACT market is reasonably well insulated from downward swings due to the amount of Government here, and because we are running out of space, i figure the growth should be reasonable.
Any help advise please.
Hi and welcome to the forum. It’s always good to see another forum member from the ACT.
Off the plan purchases in the ACT have returned pretty decent results for investors over the last few years. With delays in construction and steady growth, most investors were achieving decent capital growth before even settling on their purchases.
Will this continue? Only time will tell. In my opinion, there seems to be quite a few developments going on at present which may have an impact on the supply side (increasing the stock which may effect capital growth). The Canberra market is also pretty flat at the moment.
Where abouts in Gunghalin are you looking? What type of property are you considering?
Have you considered purchasing an established property and adding value through cosmetic renos such as painting and new flooring? This is where I see value in the Canberra market at present.
Apologies for any typos. I’m using this fancy iPad for the first time.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi jasno77,
I jumped from the other direction. I can relate to you. I was petrified when I made the decision to do day shares trading after not wanting to know about for a million years. Now, I'm quite happy to say it's convinced me I will make more cash flow positive moves trading in shares than I did with property. This is one reason I'm selling one blue-chip asset.
At any rate, if you still need convincing, you will make money in property… you will. It's just not in liquid form.
Take care.
Angel
Thanks for the advise,
Im looking at off the plan apartments, ground floor with a little courtyard on flemington road, wouldnt be completed until 2013.
I dont think i would have the time at the moment to do a reno as i work full time and study aswell although i have renovated before in Victoria! Where do you think would be the area to look at in Canberra to reno, anywhere in north canberra!
Hi Jasno77,
I have an advice which would be contrary to what others believe – but in the end, the decision is up to you.
I don't advice buying off the plan. I also don't advice buying a brand new apartment unit. I could advice buying one that's at least three years old because the building construction kinks would have already surfaced by then. If the building is badly made, trust me, it would show by its 3rd year. If the walls would crack, it would have already cracked by then.
Teething problems of new developments may not be worth the pain. Buying a three year old unit will still offer great depreciation benefit (if you're after some hefty tax deductions). So get the gain without the pain.
At any rate, I personally wouldn't invest in units after a sour experience. Again, that's just me.
Take care.
Angel
Hi Angel
I generally agree. However, off the plan purchases in Canberra have been a very successful strategy for a number of investors over the years. The main reason being the extended development times – some of these units take up to three years to complete. During that time, investors who simply exchanged on a deposit bond have experienced excellent CG without lifting a finger
This has been the case over the last 5 or so years. Only time will tell whether or not this trend continues.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie,
Don't know much about Canberra RE market so I'm happy to take your word for it.
But as for me, the CG would not tempt me on balance. That's just me.
But as for me, the CG would not tempt me on balance. You must be logged in to reply to this topic. If you don't have an account, you can register here.
