Belconnen and Gungahlin top first home buyer targets in Canberra: HTW

There is a wide variety of property types available to first home buyers in the Canberra region,  according to HTW’s Month in Review: March 2017.  

The valuation firm says there are affordable detached housing options in the outer suburbs of Belconnen, Gungahlin and Tuggeranong while the outer areas of Gungahlin also provide newer detached housing options on mostly smaller blocks.

Affordable new unit options are available throughout the Canberra region a large supply of older units close to the city and in the suburbs that would be suitably priced for first home buyers, HTW says.

The firm points to the Land Development Agency, which allocates a number of new releases to be sold through the Land Rent Scheme, as an affordable housing option.

For people who meet the requirements, buyers only need to raise the capital for the building costs, the land is rented and there is an option to purchase the land in the future.

HTW says that the most recent land rent release was in the Gungahlin suburb of Taylor where there were 126 blocks available ranging in size from 250 to 587 square metres.

New developments in the Canberra region have a large number of one-bedroom units that are priced suitably for first home buyers, HTW says.

“Some developers are offering deals that require lower upfront costs to secure a dwelling,” the report says.

“This has made new units popular for first home buyers and has reduced demand for older existing units.”

However, the firm cautions first home buyers to beware the number of financial considerations to be aware of before committing to a purchase.

“Firstly, while interest rates are low at the moment, buyers should be aware that interest rates may increase which would increase their finance costs.

“Secondly, the additional costs to purchase a property, for example legal fees, stamp duty costs and mortgage application fees, are not included in the purchase price of the property.

“Thirdly, the additional running costs of owning a property also need to be considered.

“These include the maintenance costs of the building, property management fees if it is an investment property, government taxes and body corporate fees on units.

“Particularly with new units in the Canberra region, buyers need to be aware that Body Corporate Fees can increase significantly over time.”

A three bedroom house at 2/14 Maria Smith Lane, Gungahlin (above) has been listed for $510,000 plus.

Similarly a one bedroom unit at 11/57 Benjamin Way, Belconnen (below) has been listed for over $300,000.