27 September 2018

Buying and renting in Canberra just got a little more expensive… but there is hope

| Rachel Ziv
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Buying a property this Christmas

Renters in Canberra might find themselves in a tight spot, but there is some reprieve.

It’s getting cheaper to be a renter in Australia, but the news for Canberrans isn’t so positive.

The latest Housing Affordability Report from Adelaide Bank and the Real Estate Institute of Australia reveals that in most states and territories across Australia, the proportion of income required to meet average rental payments has decreased.

Unfortunately, in Canberra we’ve bucked the trend, with rental affordability decreasing slightly. You can now expect to spend 18.6 per cent of a median income on rent, which is up by 0.1 per cent for the quarter. Compare that to the cheapest, Western Australia, where rents are sitting at 16.3 per cent of median income.

When it comes to buying a home, affordability is down almost everywhere in the country.

Having a mortgage will cost you an average 32.2 per cent of your income in Australia. In Canberra it’s just 20.9 per cent, however this is still an increase of 1.2 per cent on last quarter. In Tasmania and the NT it is currently cheaper to meet mortgage repayments than rental payments, and in the ACT there is just a couple of points’ difference. NSW remains the least affordable State or Territory to buy a property.

If you’re looking for more affordable housing, you could move a million miles away from, well, everything. Or, you could look a little closer to home.

Ginninderry, for example, stretches from north-west Belconnen, adjacent to Holt and Macgregor, and will ultimately cross the ACT/NSW border into the Yass Valley (subject to rezoning approval).

The new suburb of Strathnairn is the first in the master planned community of Ginninderry that will evolve over the next 30 years and consist of four suburbs – three in the ACT and one in New South Wales to deliver up to 11,500 new homes.

Ginninderry will offer a variety of housing options, to address the ACT Government’s Affordable Housing Action Plan target of 20 per cent of dwellings in residential areas meeting a range of affordability criteria.

Bryan Dacey, Mobile Relationship Manager for Canberra Community Bank Group, explains.

“The Flexi Living series at Ginninderry is specifically targeted towards meeting housing affordability. It is designed to provide housing choices that fit the way people actually live their lives, and is addressing the ‘missing middle’—homes designed for first home buyers that fill the gap between strata-title apartments and the traditional free standing house.”

To be eligible for the Flexi Living Series, you need to:

  • Not currently own any property, either alone or jointly with anyone
  • Live in the home for a continuous period of at least three years, beginning within one year of settlement (and not rent the home before living in it)
  • Not sell the home for a minimum of three years from the settlement date
  • Have a combined total gross income (all applicants and their partners) of less than $120,000 in the year before you apply.

“The Ginninderry team has sought out Bendigo Community Bank here in Canberra as their preferred lending partner for the Flexi Living Series, given our ties to the ACT community,” says Bryan.

“I have personally met with the development team at Ginninderry on a number of occasions. The master-planned community is huge, and it’s exciting to be involved in an initiative that seeks to make buying a home in the nation’s capital more affordable.”

The architect-designed homes in the Flexi Living Series include single and double storey houses, and start from just $385,000.

To chat with Bryan about housing options, including buying a Flexi Living home at Ginninderry, give him a call on 0435 532 740.

To learn more about banking with a local community bank, pop into any one of the Canberra Community Bank branches in:

Curtin: 1/20 Curtin Place, Curtin. Ph: 6260 5140

Jerrabomberra: 2a/2 Limestone Dr, Jerrabomberra. Ph: 6299 8357

Wanniassa: Wanniassa Shopping Centre, Sangster Place. Ph: 6231 9024

Calwell: Calwell Shopping Centre, Webber Crescent. Ph: 6291 3385

This is a sponsored article, though all opinions are the author’s own. For more information on paid content, see our sponsored content policy.

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