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!
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
[very little font] i meant ‘turN’
jeez, and I used to be in the minority for suggesting murdering property investors and their vile agents, now watch, as the tables turt, BWAAHAAHAAHAA!!!!
I paid less for a 3 bedroom place in port melbourne, 2 minute walk to the beach nice house blah blah blah, than I have paid for in a 3 bedroom place in dickson and a 2 bedroom place in belco.
This is not surprising, because other cities seem to have a much larger difference between ‘inner’ and ‘outer’ locations than Canberra does. Also, expect rents to get more expensive over the next few years. I recently read an article (in Aust. Property Investor magazine) that predicted rent rises of up to 40% over the next 4 years in Canberra.
What should we call Canberra’s newest Light Rail Vehicle?