Invest in Canberra — Your Conclusive Guide
It’s not news that Australia’s property market has taken a slide for the worst. But the good news is that the current market is not a blanket situation, and when you’re a property investor, you do not need to be limited to one market. If you decide you are ready to jump into your next (or first) investment, there are a myriad of reasons why you should consider to invest in Canberra.
If you are considering investing in your first property, there is no reason why you should let your local market dampen your decision.
Let’s explore in-depth why you should consider Canberra as one of the best property investment options in Australia right now.
Property Investment Canberra: Housing and Demographics
A Strong Market
Canberra is Australia’s second best performing (after Hobart) market, bucking the current downturn trend. Currently, the total returns are sitting at 8.1% (up from 8% in Core Logic’s December report).
The latest markets are here.
An Attractive City
Canberra was recently revealed to be considered the most liveable city by Australians. And with 10,000 new jobs and 2,000 new business (4.1% unemployment rate) created in 2018, a metro light rail and $3 billion dollars being spent on infrastructure, it is easy to see why more people will be flocking there over the next few years.
The Numbers Add Up
Canberra has a good population growth of 1.3%, driven by an excellent employment market. These healthy numbers mean that vacancy rates are sitting at 0.8%, whilst average yields from rentals are at 5.7% .
More Growth is on the Cards
Investing in Canberra is continuing to look like a good idea from now until at least 2021, with QBE’s Housing Outlook proclaiming:
“With high incomes in Canberra supporting affordability, this is expected to see 10% growth in the median house price over the next three years, to $745,000 by June 2021 “
Who Should Invest in Canberra Property?
Canberra property is an excellent prospect for a few different types of investors
Rentvestors - Canberra is great for rentvestors as it offers high rental returns, meaning you will still be able to afford to rent a better place in your preferred city of residence.
Downsizers - Those who have some extra money leftover after selling and wish to put it to work, will find a great deal in Canberra, especially with its reasonable prices compared to Sydney and Melbourne.
Cash Flow Positive Investors -those who want positively geared investments would find excellent opportunities in Canberra where rents consistently outweigh costs.
Conservative Investors - a high rental demand, combined with a large government employed labour force who are entitled to guaranteed regular payrises makes Canberra a safe city for conservative investors. These factors are also more likely to contribute to regular rental increases.
Canberra property also has the second-lowest stamp duty rate in Australia —something to consider when researching. With Canberra apartment prices still at reasonable prices, there’s plenty of bang for your buck.
Stay tuned for a suburb level guide on where to invest in Canberra soon.