All Topics / Help Needed! / Investing in Canberra Properties

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  • Profile photo of petefromsydneypetefromsydney
    Participant
    @petefromsydney
    Join Date: 2010
    Post Count: 10

    I’m based in Sydney and currently working in Canberra during the week. I’m interested investing in Properties in Canberra due to higher yield and lower price.

    What do you think of investing in Canberra in general? Are there anything that I should be aware of (ie, Canberra specific rules/laws/fees, taxes & charges etc) One thing I do know in Canberra is that you need to pay land tax if the property is rented out.

    Thanks,
    Peter

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Pete,
    Only thing I know about Canberra, unlike most other places, is that most (or all?) of the land is leasehold. This leads to lower prices, ‘cos you are not buying the land.

    It probably has a bunch of different rules around that – perhaps chatting with a Canberran adviser would be a good move.

    Benny

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    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

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of petefromsydneypetefromsydney
    Participant
    @petefromsydney
    Join Date: 2010
    Post Count: 10

    Thanks Benny & Jamie.

    @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?

    Thanks,
    Peter

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    @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

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of MonMon
    Participant
    @myat
    Join Date: 2016
    Post Count: 3

    Hi Jamie,

    Would Melbourne still be a good place to invest compared to Canberra? I live in Canberra and I know that Canberra prices have moved recently but Melbourne prices have gone up more. Cheers!

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    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

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of BuyersAgentBuyersAgent
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    @knightm
    Join Date: 2005
    Post Count: 338

    @peterfromsydney if the ACT peculiarities are an issue have you considered Queanbeyan? NSW rules, Canberra market exposure.

    BuyersAgent | Precium
    http://www.precium.com.au
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    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au

    Profile photo of Tim Mardiyants, MBA, DipProperty (Agency Mngt)Tim Mardiyants, MBA, DipProperty (Agency Mngt)
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    @blockrealestate
    Join Date: 2018
    Post Count: 7

    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.

    Tim Mardiyants, MBA, DipProperty (Agency Mngt) | BLOCK Real Estate - Canberra
    http://www.blockrealestate.com.au
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    Sales. Property Management. Buyers Agent.

    Profile photo of Alison DuffyAlison Duffy
    Participant
    @alisonduffy
    Join Date: 2020
    Post Count: 2

    Hi Jamie,

    I would like to recommend you search for property in Canberra whether it is a family house or commercial property because there are few reasons as, it is the first preference of foreign investors like Sydney and Melbourne, sufficient manpower, and a growing market, as we know the population of Canberra is growing at the fastest rate so most economists predict it may be the best opportunity for investors to expand their business.

    Alison Duffy | Canberra Property Solutions
    https://www.canberrapropertysolutions.com.au/
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    Profile photo of PropDirPropDir
    Participant
    @propdir
    Join Date: 2020
    Post Count: 2

    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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