First investment property in Canberra — what to check first

Residential land in the ACT is held under long Crown leases rather than freehold title. In practice it functions much like ownership elsewhere, but the lease has terms and purpose clauses, and renewal and variation processes exist. Have an ACT conveyancer or solicitor explain what your particular lease says before you sign.

• The ACT has been phasing conveyance duty down over many years while general rates carry more of the load — so annual rates can be higher than interstate investors expect.
• ACT land tax applies to residential rental properties; check current thresholds.
• Check current ACT Revenue Office figures rather than assuming NSW equivalents.

Put the real rates and land tax figures into the holding costs estimator, because this is one city where the annual holding cost can quietly change the picture.

The ACT's residential tenancy framework includes provisions around rent increases and ending tenancies that differ from other jurisdictions. That tends to support long, steady tenancies — which many investors like — but it also means less flexibility than you may be used to. Read the current ACT requirements, or ask a local property manager to walk you through them.

Public-sector employment, two universities and a defence presence give Canberra a deep, reliable rental pool with its own rhythms — academic years and posting cycles show up in leasing patterns. Vacancy has historically been tight in well-located areas, though that moves with apartment completions.

Canberra has delivered a lot of new apartments in specific corridors. Supply is very uneven across the city, so look at what is approved and under construction near your target address, not at a city-wide average. The house vs unit guide and off-the-plan risks are both relevant here.

Usable equity, borrowing capacity, buffer. Use the usable equity calculator and the borrowing power guide, then work through the checklist.

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