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The rental squeeze

johnboy 13 December 2006 51

Our Brave Leader keeps pumping out media releases telling us that housing affordability is the best in the nation. The most recent on was just last week.

Meanwhile today’s Canberra Times is packed with anecdotes on the red hot rental market ruining peoples lives.

Apparently investors have left the market due to land tax, which begs the question? Who’s living in all those units?

And is this all a beat-up by the real estate industry trying to influence Government policy?

UPDATED: Our Brave Leader has put out a media release saying the whole thing is a put-up job by the real estate industry and anyway he’s got a steering group out looking for “factors promoting affordability that the ACT Government can influence”.


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VYBerlinaV8 VYBerlinaV8 9:19 am 14 Dec 06

I had a look through the Kingston forshore display apartment, and I have to say I wasn’t hugely impressed. The view was ok, but the units themselves nothing extra special. I don’t think the design will age well, but that’s just my opinion.

shauno shauno 7:06 pm 13 Dec 06

Sorry Kingston Foreshore I was talking about if thats what you mean by waterfront

shauno shauno 7:05 pm 13 Dec 06

I think the waterfront site so far looks shit and very sterile. There something about it that makes it all look a bit depressing im not sure what it is but it doesn’t do it for me.

johnboy johnboy 11:01 am 13 Dec 06

The size of the building is certainly remarkable, and “unbelievable” can go both ways.

Jazz Jazz 10:56 am 13 Dec 06

Shauno,

do you think if independant described the development as anything other than “unbelievably outstanding” and “remarkable” that they’d have interest.

“come look at out new appartments, they are quite average, have crappy appointments and have no views to speak of”. That to me sounds like a sure fire marketing strategy.

VYBerlinaV8 VYBerlinaV8 9:16 am 13 Dec 06

Cheers pjreggard – I’ll check it out.

The reason I like the inner city is because some apartments can be leased on a long term basis to the serviced apartment market. My current properties are set up this way, and work very well.

That said, if a 3-4 bedroom house will return the numbers I’m after, I’ll definitely be checking it out.

shauno shauno 6:27 am 13 Dec 06

Can some one tell me whats so good about the Metropolitan development.

On the Independent website they describe it as “unbelievably outstanding” and “remarkable”

I just can’t wait to get back to Canberra and have a look it must be a once in a life time opportunity hehehe

pjreggard pjreggard 6:24 pm 12 Dec 06

VY Belina, If I were you I wouldn’t be purchasing an inner city unit for investment purposes. While rents for these places will rise the massive supply will mean they wont rise as much as 3-4 bed houses. A better yield (and similar capital growth) would be achieved by investing the same amount in a dowdy house in tuggers/belco to be rented to a crowd of PS grads. It is the house market where rents will rise fastest and hardest – just ask any clued in agent 😉

Comment by VYBerlinaV8 —

FC FC 4:43 pm 12 Dec 06

Thanks Jazz.

Jazz Jazz 4:28 pm 12 Dec 06

FC,
We allow you to say whatever you want on this forum & will only censor if it becomes too abusive or disruptive to other readers. just remember that you own your comments in the same way that you would if you shouted them out in the queue at woolworths. Check the FAQ if you want to know more.

Absent Diane Absent Diane 4:27 pm 12 Dec 06

silly song lyrics… nothing anyone has is really theirs unless it is physically attached to them. So my arms are mine, likewise my legs, feet and genitalia. I can define that.

Al Al 4:17 pm 12 Dec 06

Just listening to some Dido at work…
“If my life is for rent, and I don’t learn to buy, well I deserve nothing more than I get, ’cause nothing I have is truly mine…”

Commonwealth Bank has 110% loans, which we needed as it is pretty hard to save the legal costs let alone a deposit when you have kids and are paying the sort of rent we pay.
We lodge our house plans next week, and I can’t wait to get out from under arsehole real estate agents that treat tenants like crap no matter how well you look after a place…(yes Maloneys I’m talking about you…)

VYBerlinaV8 VYBerlinaV8 3:22 pm 12 Dec 06

“VY and shauno … you are right, I could move to Queanbeyan. Probably my only real option. But who really wants to live there?!”

Queanbeyan is God’s Country.
A beautiful place full of beautiful people.

I grew up in Queanbeyan and found it to be a bit of a dump, but it is much improved now on what it used to be. Either way, a start’s a start.

Hasdrubahl Hasdrubahl 2:27 pm 12 Dec 06

Extended family option is good. Grandparents, parents, me and Mrs Hasdrubahl, kids…all living together and one big happy family. Only have to buy one Christmas tree, too.

FC FC 2:24 pm 12 Dec 06

I don’t know if I can say this in a public forum,
But anyone thinking of buying a house, don’t go to Oz Property Law.
They are really hopeless and unreliable and even though there “package” price is cheap they ended up costing me over a $1000 extra due to their incompetence.

Ralph Ralph 2:15 pm 12 Dec 06

A good swathe of Sydney is now actually cheaper to buy in than Canberra. Luckily for me I have skills that are portable, so I’ll be pulling up stumps in a couple of years and buying elsewhere.

footyboy footyboy 2:15 pm 12 Dec 06

Remember the first home owners grant of $7000, when that was announced the price of houses increased almost overnight by – you guessed it $7000 but unfortunatly the bad news it didnt stop there and prices kept on increasing at an alarming rate and coupled with tax concessions to property investors and banks increasing their capacity to finance loans by on borrowing extra billions from huge overseas merchant banks we have a housing bubble built on overseas finance, I dont think it will burst but will linger around and make life very difficult for some sections of society.

rentboy rentboy 2:15 pm 12 Dec 06

As has been mentioned before, plenty of lenders these days offer deposit-free loans. If you can show a lender you have a fairly long, fairly consistent rent (and other bill) history that is enough, as it demonstrates to the lender a capacity for making regular payments. And really, if you’re not too picky about the kind of home you want, loan repayments do not necessarily have to be more than rent payments.

Deposits worked well in the past, when young people lived with parents until they got married, and worked from a young age, saving heaps in the process, then could buy a home straight away with minimum fuss. Cheap house prices and generous relatives of course helped. But these days unless you still live with parents and don’t pay for rent saving for a deposit really is difficult–which is why no-deposit loans are the way of the future, especially in overpriced markets like Sydney.

snahon snahon 1:59 pm 12 Dec 06

So biogaz78…

You actually now have 2 options then.

1. “lower” your ideal living environment and buy in QBN.
2. keep paying rent wondering where the hell you are going to find the money to buy in your ‘ideal’ environment.

We all start somewhere and that generally isn’t were we want to be but a start is still a start.

toastie toastie 1:53 pm 12 Dec 06

Bio, if you can’t bring yourself to live in somewhere like Queanbeyan you obviously don’t want your own home badly enough. That is your choice and fair enough, but don’t dismiss the efforts that others have gone to to purchase their first home by calling it ‘luck’.

🙂

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