New apartments in Woden

Have a squiz at the units going up where the Lyons servo used to be. They look orright, and good price. Be much better that the ones going up near the swimming pool. There’s too bloody many of them crammed in..

nothing like financial advice from riot ACT.

Nationally, housing starts are down, especially that of first home buyers, because of three things:

a) The government has run out of suckers – there are less people of the age/lifestyle group around than there are baby boomers in each year, and all of those who thought the first home buyers grants were a good idea have already taken the bait.

b) The prices are just too high to be sustainable. Each 1/4 percent movement in interest rates now has far more impact in real dollar terms on a $400K mortgage than a much larger % change did on an $80K mortgage did in the late 1980’s.

c) Many young people are no longer sure that buying a home is such a great investment, either in terms of finances, time, or simply in opportunity cost. They have seen what has happened in the USA and the UK, not to mention continental Europe, and are aware there is potential for Australia to face the same thing.
Also, both the current government and the Opposition are talking of budget pressures – which would hit Canberra hard.

Is Woden a dream destination for potential buyers relative to the number of other aprtment complexes going up? Good transport links, yes. Shops nearby – yes. Percieved safety of parks and/or public areas – varies. Beautiful/inspiring views – depends which way the apartment faces – would you like to wake up over a carpark each day?

In essence, if your friend likes Woden, and sees themselves and their family there for years to come, and desperately wants their own apartment – fine. If they are only doing it for financial gain, I think it would be a mistake, and that your friend should be patient.

arescarti42 said :

then you’d come to the conclusion that there is little potential for growth in the next 5-10 years.

…there is potential for little growth in the next 5-10 years.

I would say that is more accurate.

Tell them to buy in Mawson, I know a good apartment that will be going up for sale real soon. Only a walk away from the expanding Mawson shops and just down the road from Woden shopping centre.

And no it’s not in the ‘Great Wall of Mawson’.

If you believe the last 10 years are anything to go by, then a 400k apartment in the Woden area will sell for ~$900k in 10 years time.

If you look at the fundamental change that has taken place in credit issuance since 2008 and the ability of people to actually afford repayments on ever increasing mortgages, then you’d come to the conclusion that there is little potential for growth in the next 5-10 years.