Investing in Canberra Properties

petefromsydney wrote:

What do you think of investing in Canberra in general?

It’s a great place to invest.

Long term growth is generally quite consistent.

You can claim stamp duty in the first year of ownership – but the downside is that there’s land tax.

Yields are quite strong – especially if purchasing something around the $500k mark.

Avoid units/townhouses/apartments IMO and stick to detached houses. Preferably in established areas – and if funds allow – close to the CBD (inner North and South).

Canberra is experiencing an upswing in prices (it has for a little while now) – I still see some additional growth in the current cycle. I suspect some of it is driven by people like yourself – from out of town and realise how affordable (relatively speaking) Canberra is compared to other capitals. There’s also a fair bit of new infrastructure going in (light rail connecting the north to the CBD is the major project).

Cheers

Jamie

petefromsydney wrote:

@jamie, could you please clarify ‘You can claim stamp duty in the first year of ownership – but the downside is that there’s land tax.’ and highlight the differences between NSW and Canberra.

‘Preferably in established areas – and if funds allow – close to the CBD (inner North and South).’ Can you suggest some suburbs in these areas that I should be looking into?

Hi Peter

No probs :-)

1) You can claim the cost of stamp duty against your income. You can do this during the financial year that you make your purchase. So if you purchased a property this financial year and the duty was $20k – then you’d claim that $20k as a deduction when you do your 16/17 tax return. However – all investment properties in the ACT are charged with “land tax” which can be a hefty amount. It’s an annual fee which can be paid quarterly.

2) Here’s a link to inner North properties. I personally like Downer (but I’m biased – I own property there). It’s close to Dickson (a large retail hub), is very close to the city (4km away) and the light rail will be stopping on Swinden Street. Prices have moved by a fair bit lately though.

For the south – here’s a link These suburbs can be quite expensive – but should continue to do well over time.

Cheers

Jamie

• This reply was modified 7 years, 7 months ago by  Jamie Moore.

Mon wrote:

Would Melbourne still be a good place to invest compared to Canberra?

Hiya

It’s impossible to answer without a crystal ball :-)

Melbourne has grown quite quickly of late. Canberra is also on the rise – probably not at quite the same pace as Melbourne.

Which one to invest in now is a difficult one to answer. Personally – because I have a good understanding of the market and access to trades for renovation work – I’d go Canberra. But that’s me – your situation may be different.

Continue to do your due diligence and work out what feels right for you.

Cheers

Jamie

Canberra’s population is on course to reach 420 000 in the next 18 months or so, with an average annual growth rate of 3%. The best and most stable employment market in the country, the highest level of disposable income in the country. Lots of infrastructure investment from the local government. All the fundamentals point to a sustained positive investment market.

Hi all – interesting, because I have thought about Canberra in the past, however was unsure given people there are all mostly employed by government agencies – do you see the heavily reliance on government employment as an issue?

Also, is there alot of land supply in Canberra in general? I have a feeling there may be.

The attractive things about Canberra is that it is close to NSW, but doesn’t have NSW prices.. as someone mentioned above yields are higher too. The lifestyle in Canberra is also pretty good as far as I know.

Any further thoughts regarding Canberra would be good (pros and cons), along with specific areas/suburbs and pockets of Canberra that have specific potential?

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