Why Invest Your Capital In Our Capital
In the last 2 months, there has been growing enthusiasm for the future capital growth prospects of our Nation’s capital- Canberra.
In the year to June 2018, median dwelling prices grew by 7.7% in Year- on- Year terms which begs the question; What is driving this growth?
Below is a quick snapshot of the main growth drivers:
- Growth in Gross State Product reached 4.6% in 2016-17, the highest in this country. This follows a solid 3.9% growth in 2015-16. According to the ACT 2018 budget, this high rate of growth expected continues in the near term, with 4% growth estimated for 2017-18 and a forecast of 3¼% in 2018-19.
In acknowledgment of the above, the outlook is very positive with many industry pundits now tipping Canberra to be amongst the top performer’s terms of capital growth over the next few years.
Speaking to The Canberra Times QBE lenders’ mortgage insurance chief executive Phil White said the key driver for an increase in house prices in Canberra had been population growth. “This year we’ve seen net interstate migration into Canberra, coupled with international migration,” Mr White said.
Having recently moved to Canberra myself I can see that it definitely has it’s charms. Sure it’s Northern Hemisphere cold here in Winter but if you enjoy the seasons, and if you love being around positive people living in a City that still has a community feel to it then the capital might be something worth considering. The price of housing either to purchase or to rent is much more affordable than Sydney or even Melbourne so it can really positively impact your discretionary funds too, and in turn your lifestyle.
I don’t think Canberra will get overpopulated or as congested as Sydney in the foreseeable future and it’s at a stage where some population growth will only benefit the city as a whole and create more opportunities for those already calling the capital home.
The exciting news for home owners and potential investors is that there’s capital growth to be achieved here in the Capital. All these nice homes situated in the outerlying suburbs according to these reports are looking like great vehicles for wealth creation.