Hi,
Ive bought 2 IPs in the past currently worth about 220k combined. Im looking at buying a PPOR in canberra (belconnen side), 4 bedrooms – and renting out the other 3 bedrooms to my uni mates. Thoughts on doing this now? Or should I hold off for another 6 months or so? Im not sure how the current economic conditions will affect the house prices in Canberra as it has a very strong rental demand.Look forward to hearing peoples opinions on this.
Rohan.
There is a lot of construction around Belconnen at the moment. This is also close to where the Stanhope rent land/mortgage house scheme is being trialed and loans are currently going through for this – was actually talking to someone about it today. His house, and others on the same scheme, should be ready in around 6 months. With 20K saved, the fellow I was talking to was going to have a weekly cost of $350 on a house mortgage and land rented from the ACT govt. which is less than rental prices in a new home around here. These propertys are bound to effect the prices and rental demmand Northside ACT. On top of this, the scheme will be open to investors as of January.
Canberra wide rental demmand is strong because there is a glut of propertys for sale with vendors who won't move on price. Everyone in Canberra is trying to make maximum profit, if you live there you should know that:) I think the market here is in a mexican standoff. As soon as places get advertised at a reasonable price they are snapped up but very few of them do… yet – every vendor is fighting for their last 50-100k to supliment their dwindling super.
In short, wait. At least 6 months, 12 is better.
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