The Canberra Times is reporting that rents in Canberra are now higher than in Sydney.
This despite the Chief Minister declaring that Canberra has the most affordable housing in Australia!
What sort of property caf? What suburb?
Yeah our rent is going up in November, to near enough to $500/wk.
Correction ” 230-240K loan, not 140.
Sorry guys, by the 2K comment I meant that thats all it’s costing me up front for the property (solicitors fees) once the first home buyers grant is taken into account. The monthly repayments on a 230-140K loan are a fair bit less than that.
You may have to live simply for the first few years, but your payments stay the same while everything else (such as salary, food, RENT) increases. In 20 years time 2k a month will be nothing.
My grandfather paid out his home last year. He bought it on retirement, and took a mortgage for 80% of its cost. His repayments were $57 a fortnight. One of the biggest benefits of buying a home is that you effectively lock in a cost at a point in time. As everything else drifts upwards, that cost does not, so in real terms it costs less and less as the years roll on.
Hmm I dont really call $2K a month affordable … thats around 50% of my take home pay! And you also have to budget for extra expenses such as body corporate fees and land tax. I guess if you are happy to eat rabbit food and wear the same clothes for the next 20+ years it could be an option …
Buying is affordable. I’m in the process of buying my first home at the moment (exchanging contracts shortly). For those that think they’re stuck renting, I’d suggest going and seeing a morgage broker (email me for a suggestion if you like). They’re free, and truely are invaluable. There are plenty of ‘no deposit’ options available these days, from both the big banks and non-conforming lenders. The morgage on ym 2 bedroom townhouse is only a couple of hundred more per month than the rent on my current three bedroom townhouse. Sure, it’s a downsize, but in 10 or so years it’ll be mine, and not someone else’s.
I thought I had no hope, but for no more than 2K out of my bank account, I’ll be living in my own house, paying my own morgage, not someone elses. So there is hope. Just go and talk to someone that knows what they’re on about 🙂
I’m not sure that investors make as much of an impact as you think, Bio. The reason for this is that most investors don’t pay top dollar for their properties, they tend to buy properties that are at or below market price for whatever reason. Most good property investors don’t care whether they like the way it’s decorated, or the plants in the garden – it’s just about numbers.
As a private buyer, you are unlikely to get into a bidding war with an investor – who would rather move on to something else than get emotional about a single property. So saying that 7 investment properties makes for 7 less affordable places for you is not really the case.
A quick allhomes search turned up 2 bedroom properties for sale at 215k or less in Queanbeyan, Lyons, Mawson, Duffy and Lyneham. There are some out there, but you have to hunt around.
I take your point Vic, however the 7 investment properties you own means there are 7 less affordable places for people like me to purchase for ourselves.
All I want to do is buy a tidy 2 bedroom apartment … unfortunately due to the cost of housing in the ACT it means that I have no choice but to rent from nice people such as yourself.
As a single person on a reasonable wage my borrowing power is about $220k … try finding anything but a 1 bed shoebox in a ghetto for that sort of money in Canberra.
I agree with the above 2 posts. I rent my units to a serviced accomodation provider, who enters 5 year rental agreements with me. The reality is that investing for your own retirement gives you some surety that you will be ok when you don’t work anymore, and gives you the option of when to retire.
I’m with you Vic. Its fairly simple people. The Reserve bank puts interest rates up = Landlords put rent up.
I prefer to have a good tenant paying slightly less rent over a long period than switching tenants regularly.
Why am I greedy biogaz? I have a decent surplus of salary dollars when all my savings are put aside and bills are paid, So I choose to invest in investment properties. Have been doing so since about 1998 or so.
I’m doing this to provide a self funding future for myself, my wife and kids when I eventually retire. My wife doesn’t work. There’s no way that the pension will be a viable solution when I retire – this is, God willing, hopefully 30 years away. And in any case, I won’t be drawing off the public purse then.
I provide accomodation for 7 Canberra and region families. My rents are not excessive – in line with the market, and I personally manage all my properties – I’m not a scrooge landlord when it comes to maintenance and what not. Only 3 of my properties are positively geared, the other 4 I pay the shortfall myself.
If I invested my money in the stockmarket, it wouldn’t make the housing any more affordable for anyone else, would it? Would that make me ‘less’ greedy?
People investing in property are an essential to provide accomodation for those who cannot afford property, simple as that. If we didn’t do it, then the government would need to provide an equivalent amount of public housing. Good luck finding the money for them to do so!
Interestingly, it’s that exact phenomenon that Cityboy just mentioned that generally triggers these statistics being revealed – right when the pressure is at it’s peak.
Every January- February it is hard to find a place as a few thousand students, public service graduates and defense satff move to Canberra, but by March and April the rush is over.
VY, that’s what I’m looking at 🙂
unlike the property industry, i actually think canberra rental investment is not such a good idea.
look at the population stats.
an increase of 1000 in a year ?
i see new towns/apartment towers popping up to meet what demand exactly ?
people are overgeared, investing with equity based on a peak valuation.
Hey Nyssa – you could always join the NSW club, like me!
Why do you think I am looking outside the ACT for a house?
Stupid rental market is bleeding people dry. No wonder public housing lists are up.
And for people who have not been fortunate enough to enter the housing market yet it means that they shall now have to try and save a home loan deposit AND fork out for increasingly higher rents. Thus making it even harder to afford their first home.
Its getting to the point where renting for the rest of your life is a harsh reality for some of us.
I guess as long as the majority of voters either own or are in the process of buying their home then things will never change. Too many greedy people out there that think they need multiple investment properties …
If anyone’s interested, news.com.au is running a story about changes to the property market. Although Canberra is not specifically mentioned, one could assume the same general trend (as other Eastern Australian capitals) applies.
The story is here: http://www.news.com.au/business/story/0,23636,20431257-462,00.html
Tensions between cyclists and motorists have flared after another tragic death. Should these be regarded as traffic incidents, or do we need stiffer penalties for deaths and serious injuries?