Perfect for the astute investor.

Whether you are purchasing your first investment property or adding to a portfolio of properties, Oracle represents a very rare opportunity.

Pricing and sales off plan

Oracle has been priced to ensure strong demand in the current economic environment and demand is expected to far exceed supply. The first stages of Oracle sold out within days of release. Oracle is being offered for sale ‘Off Plan’ which will provide the opportunity for capital gain during construction, and with construction expected to be complete around the same time many economists are predicting the economy to rebound, the age old saying “buy in the low and watch it grow” may well prove to apply at Oracle.

Rental market

Canberra is in the midst of a rental housing crisis which has seen rentals for new 1 bedroom apartments in the town centres and inner areas range from $350-$450 or more per week. The $7,000 First Home Owners Grant may well see some renters leave the rental market and buy their first home. However, the large number of tenants who are renting because they are studying, lack job security or sufficient income, or who are just not yet ready to commit to purchasing, will ensure that rental demand stays very high. The vacancy rate for Independent Property Management at the end of September was 0.57%. This is consistent with Independent Property Management keeping the vacancy rate well below 1%.  A 3% vacancy rate is considered to be a balanced rental market. Independent Property Group’s Projects Division tracks the progress of all apartment and townhouse developments likely to progress to construction and there does not appear to be an adequate supply in the pipeline to provide a sufficient level of rental accommodation in the foreseeable future. Oracle is ideally located to meet the growing demand for rental accommodation from students at the University of Canberra and residents from the AIS, or employees from any one of the numerous large government departments on the doorstep of Oracle.

Finance and tax deductions

Investment finance is available now from around 5% (March 2009). Such low interest rates, coupled with high rental returns over 5% and high depreciation deductions due to record high building costs all combine to produce a rare event. Neutral or positive gearing is a very real possibility for investors at Oracle. It has been a very long time since rental returns exceeded the cost of money and interest rates are predicted to fall even further in the months ahead.

Stamp duty

All Australian residents who purchase an Oracle apartment for investment can claim the stamp duty assessed by the ACT Government as fully deductible in the year of purchase.

Well positioned property can be expected to perform at or ahead of the general market. Close proximity to employment, educational institutions, transport, shopping and entertainment is also a major benefit. With Oracle offering all of this, it really is a wise choice for the astute investor.