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Canberra’s Boutique Real Estate and Property Management

$373,000 is affordable for a new outer suburban home?

By johnboy 8 August 2012 46

Andrew Barr has proudly announced more of what he calls “affordable housing” in the Gungahlin suburb of Jacka:

The ACT Labor Government is committed to ensuring all Canberrans have access to affordable and appropriate housing, and this sale in the suburb of Jacka represents another success.

Jacka will see the construction of more than 200 new homes with more than 60 of them to be priced between $340,000 and $373,000.

The land, comprising two packaged lots for single dwellings and six multi-unit sites, sold for more than $11.4 million and was subject to a competitive tender process which attracted more than 30 bids.

The successful tenderers were the locally based Village Building Company, Gracious Living Constructions and Elevated Constructions Pty Ltd.

I am proud of the extensive work undertaken by this Government to address housing affordability.


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46 Responses to
$373,000 is affordable for a new outer suburban home?
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arescarti42 11:10 am 10 Aug 12

Golden-Alpine said :

What I was getting at is if you are already paying $500 or close to in rent each week this is worth considering.

How do you figure loan repayments are dead money? Sure you end up paying a lot over the term of the loan but at least you have something to show for it at the end.

We like others bought what we could afford and slogged away at the mortgage for a couple of years. We were then in a position where we could buy our dream home. A little sacrifice and compromise goes a long way.

Interest on a loan is “dead money” in exactly the same way that rent is “dead money”. One is what you pay for using someone else’s house, the other is what you pay for using someone else’s money.

Sure, a small portion of your loan repayment goes to paying off the principal of the loan, but given the big difference in cost between renting and paying back a loan, for the same house, you could just as easily be saving the difference and building assets that way.

That said, I appreciate some people don’t have the discipline to save money, in which case being locked in to making loan repayments might be a better idea.

Golden-Alpine 10:13 am 10 Aug 12

chewy14 said :

Golden-Alpine said :

$373K house, 10% deposit, 6% interest rates, the repayments are getting pretty close to what people are paying for rent (money down the drain).

I know a few will have a dig about the 10% deposit, some banks will lend with 5% deposit. Yes even that is a lot of money but give up some luxuries, maybe pick up a second job for a year and you would probably make enough for the 5%. Well worth it.

Somehow I doubt these shitboxes will be renting for $550-$600 a week. Rent money is only dead money if you’re an idiot. You might as well say house loan repayments are dead money because of the interest.

What I was getting at is if you are already paying $500 or close to in rent each week this is worth considering.

How do you figure loan repayments are dead money? Sure you end up paying a lot over the term of the loan but at least you have something to show for it at the end.

We like others bought what we could afford and slogged away at the mortgage for a couple of years. We were then in a position where we could buy our dream home. A little sacrifice and compromise goes a long way.

Thumper 9:57 am 10 Aug 12

Got a spare $360-370K or so and I’ve got a three beddie upstair/ downstairs with a garage in Gungahlin just for you.

AG Canberra 9:41 am 10 Aug 12

You don’t have to go out Gungahlin for ‘afordable’ housing…..Here’s a 4 and 2 in the Molonglo Valley (Weston Creek) for under 400k. Catch is that it’s in the land rent scheme.

Good value?

http://www.allhomes.com.au/ah/act/sale-residential/14-chelmsworth-street-wright-canberra/1316785750011

watto23 9:19 am 10 Aug 12

I bought a 3bedroom townhouse years ago, when it was much more affordable and agree that it would be much harder for me to buy now, however I still bought something I could afford with the view of moving into something bigger when I could afford it. I can’t right now so will continue to pay off my current place, which due to increases in property has gained me a lot of equity.

The point is I get the impression also that many people are unrealistic. Yes prices are high, but if you settle for something less than ideal pay it off, get yourself into a good financial position, you’ll be able to afford something bigger and more to your liking.

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