I was running in the gym the other night when I got a call from a friend.
Dude told me that an intermediary recently recommended a Canberra investment project: ten years of charter, a return of 6%, and a particularly beautiful price.
I`d like to ask if such a project is worth investing in. I thought about it for about five seconds and said I advised him to give up the idea for the time being.
Why only five seconds? Because about five people had asked me the same question before him.
I don`t know if you noticed. Since last year, there have been more ads for Canberra apartments around you.
To be honest, I didn`t know much about the apartment market in Canberra before, but I paid a little attention to occupational diseases because of a lot of ads for Canberra apartments that popped up recently.
Let`s take a look at the main selling points of the Canberra apartment ad and its hidden meaning.
The first is that it is bearable.
Those who recommend small and medium-sized cities real estate are bound to talk about the affordability of Sydney Melbourne first. For example, how much is an apartment in Sydney, how much is it to buy an apartment with me? This advertising word can only deal with entry-level investors, a little bit of investment knowledge should know that we can not compare apples and peaches.
Compared with 2000 zip code and 2601 zip code, the former is expensive, of course, there is a reason why the former is expensive.
If you really want to say affordability, you should compare the real estate price you are considering and the price of similar products around you. If it is a new house, there is a premium, then see whether the premium is reasonable or outrageous.
I casually looked for some current apartment prices on the Internet, as well as some of the latest Sold prices in the same area, you can understand for yourself.
(a property sold in Belconnen district, Canberra)
(price of an independent house in Belconnen in August)
(a source of housing in Gungahlin district, Canberra)
(price of a townhouse in Gungahlin in May)
Secondly, the rent return is high, with charter regulations.
Investors who like charter regulations are generally a bit of a "pick up wallet" mentality, or lazy investors.
They usually don`t want to do too much detailed research on the project and see how many years of charter regulations developers give them, as if they had bought insurance for the success of their investments.
I do not know, and whether or not the developer will raise the price, the possibility that high returns will already be included in the price, even if not, that after the end of the charter agreement, it will not guarantee the return on investment of the project. In extreme cases, the paper charter agreement is likely to be annulled when there are problems with the developers themselves or property companies that have agreed to charter regulations.
In addition, Canberra`s own rent return is very high, with an average apartment return of 5.6%, that is to say, if the developer gives you a 6% rent return, it seems high, but it is only 0.4% higher than the city average, and there is nothing to show off about.
Canberra`s vacancy rate is historically low.
There are several reasons here, one is that the local supply of new housing has been in a low position (the current number of projects under construction is very moving) second, because there are a large number of government employees, so the demand for rental housing is relatively strong.
But in many parts of Canberra, the proportion of tenants is staggering, such as 70 per cent of the population in CanberraCity, Braddon, which you know well, and only 30 per cent of the population living in Canberra.
For investors who pursue capital appreciation, this data alone is enough to exclude the two regions from the investment consideration area.
Finally, you can emigrate and add points.
This article does not fall within the scope of my ability and shall not be commented on. All I know is that in order to emigrate, some people can buy everything house, and others can marry everyone.
Is Canberra real estate worth investing in?
When I went to Canberra last year, I drove through the city center, and I did see a lot of streets become construction sites, and many cranes and construction sites were building new homes.
Although the whole city feels like a lot of construction, Canberra is still a very quiet small city, driving on the road is basically unblocked, from the relatively prosperous city center to the residential suburbs, the driving time can be controlled at about 10 to 15 minutes.
In terms of lifestyle and the degree of development of the city, I think Canberra is a city where independent houses have advantages in all respects. At present, the median price of independent houses in Canberra is about 650000, and the median price of apartments is about 440000. There is no big gap between the two.
Apartment rents returned 5.6%, while independent homes also had 4.5%, performing well.
In terms of urban population density and affordability of house prices in Australia, I think Sydney is the only city where more people will live in apartments for the foreseeable future.
In Melbourne, some areas may also make independent homes scarce, but if you don`t mind going all the way west, relatively low house prices will have a lot of supply to be developed in western Melbourne.
Over the past five years, Canberra`s independent homes have risen 26.9 percent, compared with 4.8 percent for apartments. As a large number of new projects in many regions go public in the next two or three years, the apartment market in Canberra will face some challenges.
