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Buying a home in the ACT made easier for some

By Alexandra Craig 2 June 2015 91

house-stock-roof

Housing affordability is a hot topic at the moment. Yesterday it was reported that out of all the capital cities in Australia, Canberra experienced the biggest jump in home values in May.

I’m currently looking to buy my first home, and it’s not an easy task. I’ve experienced a lot of competitiveness both at open homes and even before an open home has taken place. I’ve seen sale listings go up online in the morning, with the open home listed for later in the week, and by the afternoon the property is already under offer.

I’m not sure whether this is entirely legal, but I’ve seen it happen on several occasions in the last 12 months. I’ve even arrived at an open home and the agent has told me the property has already been sold (which hasn’t been specified online), but that they’re still allowing people in to look around.

The majority of homes on the market are listed for auction which makes me a bit uneasy – my own inexperience, nerves, and pressure wouldn’t bode well at an auction for a house I really want. Generally I don’t even look at auction listings.

I recently decided to stop telling real estate agents I’m a first home buyer, as I found that this made them more likely to not return my calls and emails. I want to buy in an established suburb, which disqualifies me for the first home owner grant, unless of course I manage to find a vacant block of land and build on it, so I think agents were just assuming that without the grant I wouldn’t be able to buy anything in the areas I wanted and that answering my queries would be a waste of their time.

I see plenty of homes in established suburbs that I can afford without the grant (though the grant would make things easier). However, I never get the chance to put an offer in as it’s always snapped up before I even get to inspect the whole house. Of course, it would be much easier for me to buy in a new suburb off the plan, but I don’t want to do this. Call me crazy, but I don’t like the idea of committing to buying a house in a suburb that doesn’t exist yet, or is half finished. I like to know exactly what I’m getting into.

The ACT Budget will be handed down this afternoon and many first home buyers have their fingers crossed that the first home owner grant will be reverted to all homes in all suburbs. Given this change was implemented two years ago, I’m not holding my breath for things to go back to how they were.

It’s not all bad news though, with pre-Budget announcements showing that stamp duty will be reduced further with the buyer of a $300,000 home saving about $2900, the buyer of a $500,000 home saving $5900, and the buyer of a $750,000 home saving $7775.

In addition to this, first home buyers, eligible pensioners and people over 60 years of age will qualify for the concessional stamp duty rate of just $20.00.

While the stamp duty reductions aren’t exorbitant, I’m sure most will welcome the news. As for the concession stamp duty rate of $20.00, it’s hard to complain about that.

When did you buy your first home in Canberra? Or are you currently in the market for a new home?


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Buying a home in the ACT made easier for some
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supersal 10:16 am 24 Sep 15

I see there’s a few reccomendations for agents around. All I can add is that we found it time consuming keeping up with all of them, as they’re not about to sell you the house listed with someone else now, are they? They all seemed nice (our new best friend almost) but still they’re working for the seller and that’s the first problem.

We used a buyers advocate for this reason, she did all the hunting, calling, inspecting, negotiating, auction bidding for us. It was such a relief to actually talk honestly about prices and not have to ‘interpret’ the price the agents were quoting. Auctions especially, the agent said 550+ on a house in Curtin and it went for 690! that’s got to be illegal.
Look up Claire Corby of capital buyers agency, she has a facebook page too but the website is http://www.capitalbuyersagency.com.au, 11 out of 10 for her service. It was expensive but worth every single dollar.

vintage123 1:39 pm 13 Jul 15

VYBerlinaV8_is_back said :

vintage123 said :

Masquara said :

VYBerlinaV8_is_back said :

Do you really think Canberra property prices will crash, despite several years of stagnation? If anything, we’re soon going to be getting to a point where we’re likely to see some price increases. My guess is two years from now we’ll be in a warm and rising market.

The public service isn’t going to be resurrected, and there’s nothing here for Chinese buyers other than the top properties in Forrest/Red Hill/Deakin – and of course there is about to be a crackdown and foreign buyers will have difficulty purchasing established houses. So, no, Canberra will flatten out and stay flat – other than in the top or very inner (phew!) suburbs.

Prices have already started to move a little upward in the last month. With todays announcement of a significant increase in Public Service recruitment, i beleive prices will continue to rise.

Additionally the traditional sydney buyers are being pushed from the Sydney market and are moving to coastal regions, north and south areas and into Canberra. Canberra holds one advantage on coastal regions in that it has greater job opportunities and high salaries.

My advice to those currently looking to enter the market is to grab something sooner rather than later.

I agree.

PS hiring freeze is over, and a number of government departments believe themselves understaffed, IT industry is booming locally and hiring, high prices in Sydney and Melbourne are dislodging people there.

We have a backlog of crappy units to work through, but time will fix that. Give it another couple of years and the market should start moving up fairly solidly.

I have removed units from my calculation, based on the assumption that there are two discrete buyers, those who are unit bound and those looking for house and land.

Freestanding house and land is moving up quite quickly. The mid to upper prices are moving quickly. Places like yarralumna have risen 30% in 12 months. Nicholls, Palmerston, Weston, Narrabundah etc are going up quickly.

Anywhere near a new suburb is rising due to the comparison between existing and new builds. So with Wright and Coombs coming on line, Existing weston creek is booming, with Moncrief and new Harrison selling, places like nicholls, palmerston and amaroo are moving quickly.

If your in the market my advice would be grab an existing place on a bigger block as these will be pushed higher buy the newer smaller blocks in the new suburbs. Also think about the fluffy clusters as the existing unaffected homes will boom once redevelopment commences.

VYBerlinaV8_is_back 1:06 pm 13 Jul 15

vintage123 said :

Masquara said :

VYBerlinaV8_is_back said :

Do you really think Canberra property prices will crash, despite several years of stagnation? If anything, we’re soon going to be getting to a point where we’re likely to see some price increases. My guess is two years from now we’ll be in a warm and rising market.

The public service isn’t going to be resurrected, and there’s nothing here for Chinese buyers other than the top properties in Forrest/Red Hill/Deakin – and of course there is about to be a crackdown and foreign buyers will have difficulty purchasing established houses. So, no, Canberra will flatten out and stay flat – other than in the top or very inner (phew!) suburbs.

Prices have already started to move a little upward in the last month. With todays announcement of a significant increase in Public Service recruitment, i beleive prices will continue to rise.

Additionally the traditional sydney buyers are being pushed from the Sydney market and are moving to coastal regions, north and south areas and into Canberra. Canberra holds one advantage on coastal regions in that it has greater job opportunities and high salaries.

My advice to those currently looking to enter the market is to grab something sooner rather than later.

I agree.

PS hiring freeze is over, and a number of government departments believe themselves understaffed, IT industry is booming locally and hiring, high prices in Sydney and Melbourne are dislodging people there.

We have a backlog of crappy units to work through, but time will fix that. Give it another couple of years and the market should start moving up fairly solidly.

vintage123 11:20 am 13 Jul 15

Masquara said :

VYBerlinaV8_is_back said :

Do you really think Canberra property prices will crash, despite several years of stagnation? If anything, we’re soon going to be getting to a point where we’re likely to see some price increases. My guess is two years from now we’ll be in a warm and rising market.

The public service isn’t going to be resurrected, and there’s nothing here for Chinese buyers other than the top properties in Forrest/Red Hill/Deakin – and of course there is about to be a crackdown and foreign buyers will have difficulty purchasing established houses. So, no, Canberra will flatten out and stay flat – other than in the top or very inner (phew!) suburbs.

Prices have already started to move a little upward in the last month. With todays announcement of a significant increase in Public Service recruitment, i beleive prices will continue to rise.

Additionally the traditional sydney buyers are being pushed from the Sydney market and are moving to coastal regions, north and south areas and into Canberra. Canberra holds one advantage on coastal regions in that it has greater job opportunities and high salaries.

My advice to those currently looking to enter the market is to grab something sooner rather than later.

Ezy 10:48 am 13 Jul 15

Lazy I said :

Ezy said :

vintage123 said :

Hi Alexandra,

Give Justine burke a call, she may be able to find you a little place in Duffy if your interested.
http://www.luton.com.au/consultant?consultant_id=28

I have dealt with her before and can recommend. If you need a hand just let me know and I will call her for you.

Cheers vintage123

This is the area I am looking at – and in my travels, I have come across Justine and Tim a number of times. Absolutely lovely and very professional. The same can be said for the team at McGrath and Peter Blackshaw in Woden and also Michael Potter at One Agency.

Having said that, each agent knows what I am after, they know how long I have been looking and how frustrated I am getting – yet I don’t get any special treatment. Mainly because they aren’t working for me, they are working for the vendor. Their priority is to get the best price for their client – to them, it doesn’t make sense to avoid people bidding and most likely paying more than what the property is worth, just to do people like me a favour.

I know 4 agents personally, and it is the same story. They aren’t going to go out of their way for me in this current market.

By ‘out of the way’ it seems you want real estate agents to give you some kind of charity because you are being outbid in suburbs you want to buy in? What do you expect them to do? give it to you at a lower price than other buyers? Why?

You sold your house after the Fluffy buy back had already started (for more than you expected), and now you’re expecting to buy back into the market without that same increase in prices?

Incorrect. I sold my house prior to the Mr Fluffy buy back.
You mis-understood what I was trying to say, I am not expecting agents to hand me a house on a platter – what I was trying to say is that even though you may have contacts or have built a relationship with a certain agent, at the end of the day it’t not going to matter if you aren’t the top bidder.

Having said that, I would much rather buy a property from an agent I have dealt with or seen at many open homes before, than an agent who I am unfamiliar with.

As for being outbid – that is fair enough, I can cop that on the chin when I am being outbid on a house after I set my limit of what I think is the market value. It doesn’t bother me if people are paying more for these homes, they saw more value in the house than what I did.

So more recently there was a house on the market with a price guide of 540-590k. I checked it out before the open weekend and offered 590k – the agent/vendor wanted to go with the open home because they were ‘shell shocked’ at having that top end of the price reached straight away and wanted to see how the market would respond.

Fast forward another week (I think my offer was being used as a bargaining tool to get other offers up) and the agent mentioned that there has been a higher offer. The agent told me what that price was and if I could jump over that, then the house was mine. I offered $500 more and it was knocked back as I wanted to gain access to the yard one last time to gain a quote to remove one particular tree. The other offer was subject to finance. As far as I know, the house was sold for less than my highest offer.

JC 10:13 am 13 Jul 15

Happy_Dude said :

@AlexandraCraig, I’ve recently purchased a house in Kambah after a couple of months of intense research. You’re right to be wary of auction listings, however you’re chopping out a good many options so I’d suggest learning how to play the game.

I’m pretty sure the reason that most houses are listed for auction is that it puts all the cards in the vendor’s hands. If you make a pre-auction offer, it must meet all auction conditions – ie unconditional and no cooling off period (this required a solicitors form for some reason in the ACT). No doubt someone else will also make an offer and it’s very easy to wind up in a silent auction. You will have no way of knowing whether this is genuine or otherwise. Although far from ideal, you’ll quickly realise that an actual transparent auction is not a bad thing.

Interestingly, I was at an auction in Duffy where the top bid was clearly below the reserve. With the auction still open, the bidder was led away and returned 5mins later with a new bid $5k higher and bids from other parties requested. Obviously no-one bid further so the guy “won” the auction by outbidding himself by $5k. Struggling to see how that’s ethical, let alone legal.

I’d also recommend getting your own building and pest report as the vendor supplied one will be useless. There’s so many liability waivers and they appear to be done by unqualified building inspectors (“we are not electricians, plumbers, etc”) that the reports represent nothing more than a glorified condition report. This would be particularly relevant if there’s been some reno work. I had a plumbing issue within a week of settlement and the plumber said that the works associated with the new laundry were illegal. It’s the sort of issue that ought to be identified in a competent report.

Do you think your own indepenant report will be any better? It will be done by the same group of people with the same limitations etc.

As for bidding against yourself, all legal and not sure what the issue is about ethics. The options would be up the bit or have the place passed in.

Masquara 8:57 pm 12 Jul 15

VYBerlinaV8_is_back said :

Do you really think Canberra property prices will crash, despite several years of stagnation? If anything, we’re soon going to be getting to a point where we’re likely to see some price increases. My guess is two years from now we’ll be in a warm and rising market.

The public service isn’t going to be resurrected, and there’s nothing here for Chinese buyers other than the top properties in Forrest/Red Hill/Deakin – and of course there is about to be a crackdown and foreign buyers will have difficulty purchasing established houses. So, no, Canberra will flatten out and stay flat – other than in the top or very inner (phew!) suburbs.

Happy_Dude 1:14 am 12 Jul 15

@AlexandraCraig, I’ve recently purchased a house in Kambah after a couple of months of intense research. You’re right to be wary of auction listings, however you’re chopping out a good many options so I’d suggest learning how to play the game.

I’m pretty sure the reason that most houses are listed for auction is that it puts all the cards in the vendor’s hands. If you make a pre-auction offer, it must meet all auction conditions – ie unconditional and no cooling off period (this required a solicitors form for some reason in the ACT). No doubt someone else will also make an offer and it’s very easy to wind up in a silent auction. You will have no way of knowing whether this is genuine or otherwise. Although far from ideal, you’ll quickly realise that an actual transparent auction is not a bad thing.

Interestingly, I was at an auction in Duffy where the top bid was clearly below the reserve. With the auction still open, the bidder was led away and returned 5mins later with a new bid $5k higher and bids from other parties requested. Obviously no-one bid further so the guy “won” the auction by outbidding himself by $5k. Struggling to see how that’s ethical, let alone legal.

I’d also recommend getting your own building and pest report as the vendor supplied one will be useless. There’s so many liability waivers and they appear to be done by unqualified building inspectors (“we are not electricians, plumbers, etc”) that the reports represent nothing more than a glorified condition report. This would be particularly relevant if there’s been some reno work. I had a plumbing issue within a week of settlement and the plumber said that the works associated with the new laundry were illegal. It’s the sort of issue that ought to be identified in a competent report.

Of course, in the current “you snooze you lose” market you’re experiencing (I had similar experiences), you may not have the luxury of giving an offer subject to building and pest, so you may be buggered either way. I think this may explain the popularity of building in a new suburb.

Lazy I 12:08 am 04 Jul 15

Ezy said :

vintage123 said :

Hi Alexandra,

Give Justine burke a call, she may be able to find you a little place in Duffy if your interested.
http://www.luton.com.au/consultant?consultant_id=28

I have dealt with her before and can recommend. If you need a hand just let me know and I will call her for you.

Cheers vintage123

This is the area I am looking at – and in my travels, I have come across Justine and Tim a number of times. Absolutely lovely and very professional. The same can be said for the team at McGrath and Peter Blackshaw in Woden and also Michael Potter at One Agency.

Having said that, each agent knows what I am after, they know how long I have been looking and how frustrated I am getting – yet I don’t get any special treatment. Mainly because they aren’t working for me, they are working for the vendor. Their priority is to get the best price for their client – to them, it doesn’t make sense to avoid people bidding and most likely paying more than what the property is worth, just to do people like me a favour.

I know 4 agents personally, and it is the same story. They aren’t going to go out of their way for me in this current market.

By ‘out of the way’ it seems you want real estate agents to give you some kind of charity because you are being outbid in suburbs you want to buy in? What do you expect them to do? give it to you at a lower price than other buyers? Why?

You sold your house after the Fluffy buy back had already started (for more than you expected), and now you’re expecting to buy back into the market without that same increase in prices?

Ezy 9:38 am 03 Jul 15

vintage123 said :

Alexandra and ezy, i am sure something will come up that fits the bill. In the meantime keep doing what your doing and keep a level unemotional head on your shoulders about it. Worse thing you could do is jump into something that cripples you finacially and emotionally.

f your are both on salary, have you considered the alternate plan of purchasing an investment home first and negative gearing it. Since july 2012 the proportion on first homebuyers who have turned from looking for a principle place of residence to purchasing a negative geared investment property has risen from 3% to 43%. Happy to provide more information if you require. Be aware of most articles floating around regarding negative gearing as most are spin. Its a lucrative incentive if you are on a reasonable salary, and you wish to purchase property to reduce your taxable income. As is margin lending if your preference is the stock market.

happy to help with info.

Thanks for the further advice – as mentioned, we were so close to buying a property the other day – but it wasn’t meant to be (even though the home still isn’t marked as UNDER OFFER and is going to be open again this weekend – Such a frustrating experience, I really want to tell everyone what happened here as everyone I tell can’t believe it, but I just don’t want to tarnish any agents names, reputations etc).

We have been toying with the idea of an investment property, but at this point we are just trying to concentrate on finding a house for us to live with the lifestyle that we are after (close to Stromlo MTB park, room for a veggie patch, room for a chicken shed, and somewhere for a future dog to run around).

vintage123 4:31 pm 02 Jul 15

Alexandra and ezy, i am sure something will come up that fits the bill. In the meantime keep doing what your doing and keep a level unemotional head on your shoulders about it. Worse thing you could do is jump into something that cripples you finacially and emotionally.

The price has come straight from the sellers who have just realised that rebuilding, or building in general, including renovations costs a fortune. I suspect they want out after they renovated, then were not satisfied, had quoting for knockdown rebuild done and were gobsmacked and have now realised to get the new house they want they will need mega bucks, so they are trying to sell this one at an unrealistic price. Soley to attempt to buy something newer. Probably over in wright.

If your are both on salary, have you considered the alternate plan of purchasing an investment home first and negative gearing it. Since july 2012 the proportion on first homebuyers who have turned from looking for a principle place of residence to purchasing a negative geared investment property has risen from 3% to 43%. Happy to provide more information if you require. Be aware of most articles floating around regarding negative gearing as most are spin. Its a lucrative incentive if you are on a reasonable salary, and you wish to purchase property to reduce your taxable income. As is margin lending if your preference is the stock market.

happy to help with info.

Alexandra Craig 3:32 pm 02 Jul 15

vintage123 said :

$645k plus expenses is a lot of money for a first home. Comfortable with dual 100k incomes nil kids, considering interest rates will increase at some time in the future.

I think that particular place is overpriced. It is a good sized block. House is small. Yes it has a granny flat. And yes they have approval to knock down rebuild. But why are they selling. Because the house is small. The cost to knockdown rebuild is North of 700k.

So all of what they have spent on it in the last two years, including interest repaymentsth is priced into the
increased price. It leaves you no fat on the bone.

Your thinking, but I can live in the house with my partner and rent out the granny flat. Yes you could but to do it legally it gets complicated with land taxes, income derivatives and tax declaration. But the biggest hit comes if you sell, whereby you void your zero CGT concession. So normally to rent the granny flat legally is not worth it as any gain in income is frittered away by tax and capital gains.

You could use the granny flat as an office and then claim expenses including mortgage repayments percentage but again it’s complicated.

My advice, find something simpler, less expensive and don’t overcomplicate your repayments with boarders. If you can find one similiar on a good sized lot, no granny flat and one which has been owned for ten years plus, you will find they will be more likely to take a lower price as they probably haven’t recently paid high mortgage repayments or overcapitalised on improvements.

Block size will make you money in long run.

I wouldn’t pay more than $550k for that one in Weston. And they wouldn’t sell it for that.

Time to move on. Next.

If I bought a place with a granny flat, I wouldn’t rent it out – I would use it for a cat rescue. Haha! Not even kidding.

I was considering buying a townhouse just to get into the property market, then I can get a ‘proper house’ down the track, but the body corporate fees on all the ones I have looked at so far are sky high and appear to be unjustified when there is no elevator or gardens that need maintainin etc.

Ezy said :

vintage123 said :

Time to move on. Next.

That house price that has come up after it failed to sell at Auction has shocked me… even with that + in front of it. As for renting out that granny flat – it would be even hard to rent it out as it had no kitchen unless whoever is living in there is happy with 2 min noodles.

Alexandra, did you attend the auction? Was there much interest? I would be very interested who has set that price that it is at now. Greedy vendors or the agent who is out of touch with that particular pocket. I have seen a few homes pop up lately where they have a price on it rather than auction, and the price just seems odd.

I can’t wait for spring – there has been 2 weeks without a property to look at on the weekend. I like that I am getting my weekends back, but it’s not helping my living situation.

I was super shocked too. Especially with the + in front of it.
It really doesn’t make sense to me – the agent seemed to be quite reasonable and realistic when I was speaking to her. She spoke to me like we were both regular people, as opposed to someone that was really pushing a house sale, so if I had to predict who put that price on it, I’d say it was the owners.

I didn’t attend the auction as I had something else on. About 3 days before the auction though, I was apparently the only person who had shown any actual interest, so I would be surprised if there was more than a few people registered for the auction.

The granny flat situation is interesting. They had an appraisal done and apparently you can rent the granny flat for $250 per week. This would only work if you knew the person you were renting to, or felt comfortable with them using your house because as you said, no kitchen, and there’s also no laundry. Considering you can get newish apartments in Canberra that are bigger, with a kitchen and a laundry, that aren’t in someone’s backyard for $300-$350 per week, I don’t think anyone would pay $250 to eat 2 min noodles and wear dirty clothes…

Ezy 2:46 pm 02 Jul 15

vintage123 said :

Time to move on. Next.

That house price that has come up after it failed to sell at Auction has shocked me… even with that + in front of it. As for renting out that granny flat – it would be even hard to rent it out as it had no kitchen unless whoever is living in there is happy with 2 min noodles.

Alexandra, did you attend the auction? Was there much interest? I would be very interested who has set that price that it is at now. Greedy vendors or the agent who is out of touch with that particular pocket. I have seen a few homes pop up lately where they have a price on it rather than auction, and the price just seems odd.

I can’t wait for spring – there has been 2 weeks without a property to look at on the weekend. I like that I am getting my weekends back, but it’s not helping my living situation.

vintage123 2:04 pm 02 Jul 15

$645k plus expenses is a lot of money for a first home. Comfortable with dual 100k incomes nil kids, considering interest rates will increase at some time in the future.

I think that particular place is overpriced. It is a good sized block. House is small. Yes it has a granny flat. And yes they have approval to knock down rebuild. But why are they selling. Because the house is small. The cost to knockdown rebuild is North of 700k.

So all of what they have spent on it in the last two years, including interest repaymentsth is priced into the
increased price. It leaves you no fat on the bone.

Your thinking, but I can live in the house with my partner and rent out the granny flat. Yes you could but to do it legally it gets complicated with land taxes, income derivatives and tax declaration. But the biggest hit comes if you sell, whereby you void your zero CGT concession. So normally to rent the granny flat legally is not worth it as any gain in income is frittered away by tax and capital gains.

You could use the granny flat as an office and then claim expenses including mortgage repayments percentage but again it’s complicated.

My advice, find something simpler, less expensive and don’t overcomplicate your repayments with boarders. If you can find one similiar on a good sized lot, no granny flat and one which has been owned for ten years plus, you will find they will be more likely to take a lower price as they probably haven’t recently paid high mortgage repayments or overcapitalised on improvements.

Block size will make you money in long run.

I wouldn’t pay more than $550k for that one in Weston. And they wouldn’t sell it for that.

Time to move on. Next.

vintage123 11:51 am 01 Jul 15

From my extensive experience, now is a fantastic time and opportunity to make significant financial gain from property in the ACT. Simply all you need to do is purchase a property as close as possible to a designated Mr Fluffy cluster. Anywhere near those 12 streets with multiple Mr Fluffy homes will be a gold mine. Basically two things are likely to occur. One the rezoning of the land. Two the construction of new homes, probably twin townhouses on the one block. Once this occurs all existing homes in that area will boom in value, due to the existing non affected homes being larger and on a bigger block than the new ones. Albeit the home will be older, but the cost to build the new ones will be so high it will make the current prices in the areas look miniscle, i would even say the current prices are lower than the revised land value of the rezoned fluffy blocks.

Ezy 8:11 am 01 Jul 15

Alexandra Craig said :

Ezy said :

Alexandra Craig said :

Looking for some advice here. In the last few days I found a house I like. It’s up for auction and I asked the agent what the price guide is. They told me high $500s to early $600s. I looked the property up online and found the previous listing – it last sold in 2012 for $540,000 and it has since been renovated. New bathroom, new floorboards, bit of work to the yard and new paint. Possibly more, but that’s all I could tell from the pics. I’m being taken for a ride with the ‘high $500s to early $600s’ price guide aren’t I?

I am just curious to see if the one I thought you were looking at was the property that went for auction last weekend and got passed in. It is now up on AllHomes for 645k+

That’s the one.

The first time I expressed interest I was told price guide was high $500s, low $600s.
When I went to the first open home the agent said there hadn’t been much interest.
Second open home and the agent spoke to me again saying that I was the only person who had shown the slightest amount of interest whatsoever and that the owners are really desperate to sell so are now looking for mid $500s.
Property passes at auction, gets put on the market for $645,000+. I’m no expert obviously but I don’t think it’s worth $645k.

That is really frustrating for you – I was at the first open home as well. I think that price that it is at now is too high considering this place sold not long ago at auction for 627k (http://www.realestate.com.au/property-house-act-waramanga-118915583). It was a level above what that home is offering. I would put an offer forward of what you think is reasonable for that home. You never know what will happen.

If it is any consolation – I too have missed out on a home in the last couple of weeks… when mine was the highest offer. I could rant for a long time based on my experience, but it will only frustrate me more.

Alexandra Craig 5:01 pm 30 Jun 15

Ezy said :

Alexandra Craig said :

Looking for some advice here. In the last few days I found a house I like. It’s up for auction and I asked the agent what the price guide is. They told me high $500s to early $600s. I looked the property up online and found the previous listing – it last sold in 2012 for $540,000 and it has since been renovated. New bathroom, new floorboards, bit of work to the yard and new paint. Possibly more, but that’s all I could tell from the pics. I’m being taken for a ride with the ‘high $500s to early $600s’ price guide aren’t I?

I am just curious to see if the one I thought you were looking at was the property that went for auction last weekend and got passed in. It is now up on AllHomes for 645k+

That’s the one.

The first time I expressed interest I was told price guide was high $500s, low $600s.
When I went to the first open home the agent said there hadn’t been much interest.
Second open home and the agent spoke to me again saying that I was the only person who had shown the slightest amount of interest whatsoever and that the owners are really desperate to sell so are now looking for mid $500s.
Property passes at auction, gets put on the market for $645,000+. I’m no expert obviously but I don’t think it’s worth $645k.

Ezy 3:37 pm 30 Jun 15

Alexandra Craig said :

Looking for some advice here. In the last few days I found a house I like. It’s up for auction and I asked the agent what the price guide is. They told me high $500s to early $600s. I looked the property up online and found the previous listing – it last sold in 2012 for $540,000 and it has since been renovated. New bathroom, new floorboards, bit of work to the yard and new paint. Possibly more, but that’s all I could tell from the pics. I’m being taken for a ride with the ‘high $500s to early $600s’ price guide aren’t I?

I am just curious to see if the one I thought you were looking at was the property that went for auction last weekend and got passed in. It is now up on AllHomes for 645k+

JC 12:24 pm 10 Jun 15

chewy14 said :

rommeldog56 said :

watto23 said :

I paid stamp duty on my house and now i’m paying increased rates. there is no easy way to make the change, but ultimately people who either live on larger blocks of land, or who live on more expensive land will pay more than someone who doesn’t. that seems pretty fair to me. If you want to buy a new car you can buy a cheap economy vehicle, or something more expensive. The end result is fair. The transition has its problems, but this is better and easier to do over 20 years.

There is an increase in spending in the budget that went to Education and Health. So some of the rate rise covers that. The light rail was not even a major dent in this budget either, so we can’t blame that, so if the rates don’t go up where is the money coming from? Where are the libs getting money from? I suspect rates increased but not as much as labor and less spending on Health and Education. That is a choice to be made at the election, but the Libs don’t have a magic wand and hopefully they will campaign on policies rather than 3 word slogans to scare people to vote for them.

As has already been stated, people with land in “prestige” areas and those with larger blocks, already pay more Annual Rates.

There has been spending of multi millions $ on Light Rail infrastrucure, Consultants and Capital Metro. It’s just that no payments have yet been made to the PPP provider. I note the recent announcement by the ACT Government that m$375 from asset sales will be credited to the stage 1 of Light Rail as a 1 off capital injection. That’s just to get the pa payment to the PPP provider down to announce for next years election. That m$375 should have gone to Health and education instead – or maybe to ease the Mr Fluffy financial burden.

The end result, if my Annual Rates triple much, much faster than would have otherwise been the case if that annual increase was, say, linked to CPI and I get no credit for spending $23K in stamp duty on a house here 3 1/2 years ago, then its not fair at all.

The question is where is the government income meant to come from? The argument about wasteful spending on Capital Metro or other government programs is completely separate from the argument about removing stamp duty.

Yes, prestige areas currently pay more but are they actually paying enough for the benefit of their land? Probably No. We need to increase the efficiency of our land use and make housing mobility easier and this policy does exactly that.

As for whether you paying stamp duty and now higher rates is “fair”, you are assuming that you are never going to move again which is extremely unlikely. If however, you are one of an extreme minority of a handful of people who paid full stamp duty and never move again before you die, then yes that’s probably unlucky. But we shouldn’t be changing policies just because you personally might be adversely affected, the overall greater good is more important in this case.

Isn’t the overall all good just a form of communism or maybe soften it and call it socialism. That just against the grain of the capitalist mentality that has now taken over this country. (Not for the better either).

JC 12:22 pm 10 Jun 15

rommeldog56 said :

watto23 said :

I paid stamp duty on my house and now i’m paying increased rates. there is no easy way to make the change, but ultimately people who either live on larger blocks of land, or who live on more expensive land will pay more than someone who doesn’t. that seems pretty fair to me. If you want to buy a new car you can buy a cheap economy vehicle, or something more expensive. The end result is fair. The transition has its problems, but this is better and easier to do over 20 years.

There is an increase in spending in the budget that went to Education and Health. So some of the rate rise covers that. The light rail was not even a major dent in this budget either, so we can’t blame that, so if the rates don’t go up where is the money coming from? Where are the libs getting money from? I suspect rates increased but not as much as labor and less spending on Health and Education. That is a choice to be made at the election, but the Libs don’t have a magic wand and hopefully they will campaign on policies rather than 3 word slogans to scare people to vote for them.

As has already been stated, people with land in “prestige” areas and those with larger blocks, already pay more Annual Rates.

There has been spending of multi millions $ on Light Rail infrastrucure, Consultants and Capital Metro. It’s just that no payments have yet been made to the PPP provider. I note the recent announcement by the ACT Government that m$375 from asset sales will be credited to the stage 1 of Light Rail as a 1 off capital injection. That’s just to get the pa payment to the PPP provider down to announce for next years election. That m$375 should have gone to Health and education instead – or maybe to ease the Mr Fluffy financial burden.

The end result, if my Annual Rates triple much, much faster than would have otherwise been the case if that annual increase was, say, linked to CPI and I get no credit for spending $23K in stamp duty on a house here 3 1/2 years ago, then its not fair at all.

Actually that money couldn’t have gone elsewhere. As you pointed out it was money that came in from asset sales with a copayment from the commonwealth. The copayment came with the proviso that it be spent on further assets. Think it’s called the asset recycling project. The intent is to spend on capex items to keep the economy flowing not on opex which doesn’t neacisarily have a direct flow down.

5

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