By Herron Todd White
$500,000 is enough to get a buyer into the ACT housing or unit market, but this amount is on the lower end of the value spectrum.
$500,000 would be considered a lower amount given that most reasonably located and well-built housing stock in the ACT is usually above the $700,000 mark. $500,000 will still be enough to purchase a house in the outer suburban areas, such as the west side of Belconnen, the Tuggeranong District and some parts of Gungahlin. Finding housing stock for under $500,000 in the inner suburban areas such as Inner Belconnen, Woden Valley and Western Creek has become very difficult and properties in these areas sold under this amount are usually in need of heavy renovation work, in undesirable locations, have unusually small block sizes or have other environmental issues (main roads, noise). Housing stock under $500,000 in the central locations such as Inner North and Inner South is nearly non-existent given very high land values.
Buyers at the $500,000 mark are often first home buyers or investors given the low price point and solid yields. The lower price point properties are arguably the best performing properties in the market at the moment, as most houses on the market for sub $550,000 are being snapped up very quickly.
$500,000 is enough to purchase a range of different unit types in almost any suburb in Canberra. $500,000 will often be enough to purchase a new one or two-bedroom apartment in one of Canberra’s best suburbs such as the City, Turner, Braddon, Griffith, Forrest or Kingston. Canberra’s inner-city suburbs feature a number of established unit complexes built pre 1990s, which usually include one and two-bedroom units that commonly sell for between $200,000 and $400,000 depending on quality, location and size.
Given that Canberra’s unit market has been sluggish recently due to high quantities of new stock being introduced to the market, the suggested best performing property would be housing stock.
The best investment would depend on your investment goals, but $500,000 would be well invested in an established area with large land parcels such as West Belconnen or Tuggeranong.
Speak with a Canberra Mortgage Broker today.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.