The lucky attendees of our Canberra Property Investment Evening on the 12th of May got the opportunity to hear directly from property investment experts - Performance Property Advisory. They revealed the most up-to-date predictive data on investing in the Canberra property market. In addition, we had Rob Garth, local Mortgage broker from Clarity Home Loans, talk about the lending market. And Bradley Beer, Chief Executive Officer from BMT Tax Depreciation Quantity Surveyors provide the latest information on depreciation and the tax benefits. Here's an overview of the info that was covered at the event.
DAVID MCMILLAN - Performance Property Advisory
CANBERRA AT A GLANCE
Population:
Current: 431,380
Current Growth Rate: 1.2%
Average 10 Year Growth Rate: 1.8%
Unemployment rate:
3.4%
Current Median:
$750,000 House
$500,000 Unit
Yield:
House yield: 4.6%
Unit yield: 5.1%
In the current stage of the cycle:
The Canberra House market is in the: Buy momentum stage
It would be best suited to: Medium (4-7 years) to long (10+ years) term strategy
The Canberra House market is a: medium to high risk investment
Long term compounded growth
PA (1990) us 7.21% for houses and 5.31% for units
PPA VIEW OF THE CANBERRA HOUSE and UNIT MARKET
Hold
Hold and monitor property in this market. Potential for growth in the short term is predicted but limited. Investing at this stage in the cycle holds extreme risk, due to low yields and aggressive prices.
Buy momentum
On a macro level the market is at or close to halfway through this growth cycle and demand for quality property is strong and rising. Macro fundamentals are present to support growth in the short term.
Sell
The market has peaked and prices are likely to soften or stagnate in the short to medium term. Consider selling in this market after consultation with your financial planner or property investment adviser.
Downturn
The market is moving through a correction stage. We see minimal growth in the short to medium term
Buy value
This market offers good investment value with macro fundamentals present to support growth in the short to medium term. Buy at the true market bottom to take advantage of the full growth upswing, with cyclical risk at its lowest.
This information is general only and does not constitute professional advice. You should always seek professional advice concerning your particular circumstances before acting.
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