Adelaide vs. Hobart: Where would you invest?

In the year to June 2016 Tasmania’s largest export commodity categories by order of ranking were:

• processed metals and metal products - primarily aluminium and zinc and associated products (contributing $1 209 million in value, an increase of 23.8 per cent from the previous year)
• ores and concentrates - primarily iron ores, tin ores and some copper ores (contributing $398 million, a decrease of 22 per cent from the previous year)
• confidential items of trade (contributing $299 million, an increase of 62.5% per cent compared to the previous year)
• meat products - predominantly fresh, chilled or frozen beef, and some sheep (contributing $213 million, an increase of 18.7 per cent compared to the previous year)
• seafood products - primarily abalone and Atlantic salmon and approximately one-fifth rock lobster (contributing $187 million, an increase of 27.3 per cent compared to the previous year).
• dairy products - primarily powdered full cream and skim milk, approximately one-fifth cheese and a small amount of butter (contributing $125 million, a decrease of 20.5 per cent compared to the previous year).

Now im dying to know what are 'confidential items of trade'.

Also looks like tourism is worth in excess of a lazy $2 billion annually

CHART: Hobart's property market is booming as travel to Tasmania from Sydney hits record highs

and international education around 1/4 billion

 

Defense maybe?

 

I chose to invest in Adelaide almost two years ago mostly as a contrarian play -- I wanted to invest in an area that not everyone was talking about, but a good city that had the potential to soak up the inevitable overflow from Sydney. I really like the idea of continuous modest growth year in and year out. It just seems sustainable and means people can actually plan ahead and save for a deposit, without being terrified of the market running away from them. Although I've been surprised with the growth my duplex in South Plympton has already apparently seen. It's happened a bit faster than I was expecting.

I bought in Brisbane this year for similar reasons. I think more and more people will begin to realise that you can buy or rent properties for almost half the price of Sydney while earning a comparable income. Unless of course your career is in finance or something Sydney-specific.

 

That strategy will work long term but I would rather buy a property in a booming market like Sydney and Melb and double my money in 3 years. Call me silly

 

I won't call you silly, but isn't it a big risk, gambling into something that we can only speculate that Sydney or Melbourne will continue to boom for further 3 years?

Probably best not to get stuck in Sydney or Melbourne if the market starts to decline. Else will have to wait another boom to really make money out of timing the market like that. Again, no crystal ball to say whether they will start to decline or continue booming.

 

Yep exactly. Everyone's done really well there.

Besides, not everyone has the budget for those places.

 

I am referring to buying when markets are starting to rise anywhere in Australia. I see this as less risk than buying in markets that are flat or falling because you are holding property, no growth and paying interest and you are buying I assume on gut rather than looking at indicators that trigger booms.

Not saying you should not buy in Adelaide or Brisbane, however, when buying property I think one thing that seems to be ignored is market conditions and this it critical to make money .... and has nothing to do with nice beaches.

But some people don't invest and just talk about it, so I guess as long as you are in it you will eventually make money.

 

Would you believe you could buy in Mt Druitt for around $230K in 2013, now you would need around $500K+ today, just pointing out the obvious, market conditions are very important when buying it could make the difference from making nothing to killing the pig.

 

Are you currently buying in Tassie???

 

With a ratio of perhaps 3 Adelaide houses versus 1 Sydney home,2 ish Melbourne homes,i know which one i would invest in.

 

I would agree with you. Buying in a rising market is smart business. Hobart is certainly rising, for how long is anyone's guess but I would say it will continue to rise into 2018

 

Wouldn't be surprised if the mix of items included opium poppies...

 

So you expect Melbourne and Sydney to double in the next three years !!!!!

You're silly ...

Cliff

 

this also appeal's to myself, Sure you can find better performance in other markets over specific time periods. But for my risk appetite and using a buy and hold forever strategy, the predictable nature of the Adelaide market suits me.

 

Bought last year

 

Good, hope you all make pots of money

 

You have more risk buying in market where immigration/population growth is low, job stats are lower and economy poor performer in Australia
I think entry level is attraction in SA I get this, but dont forget you need to make money

 

Back to your original question regarding the economy etc. Someone has posted on Tassie, seems there are sound reasons why this market has been moving.

Here is a link on SA which you may find helpful.
The search for an economic solution for South Australia

I purchased in Sydney and Melbourne when they were all booming still continue to boom but I believe close to peak now. The reason I purchased in these markets was the economy was sound, immigration was highest, plenty of jobs and service based industries. I also saw the spike when it started rising in both markets.

The low interest rate environment has helped continue to drive these markets.

I also purchased in Perth in 2013-14 when it was booming, what drove this boom was FHB sub $500K. I would also be wary of the investor/buyer mix.

Wherever you decide to buy make sure you look at the market conditions, economy, jobs, immigration, market sentiment..... these are all key drivers. Everyone has an opinion does not make it fact.

MTR

 

Me too, the markets that doubled in 3 years. If I purchased in Adelaide in 2013 I would still be waiting for growth, same as those who purchased in Brisbane,

Adelaide will have its day eventually, same as Brisbane its just not happening now unfortunately. Property in Adelaide is cheap, brilliant though I believe Xenia mentioned Adelaide is still some way off a booming market and you must buy well, I guess by this she means, inner location, close to city.

Back to the topic, I voted Tassie over Adelaide purely on the fundamentals that drive property markets to rise.

MTR