TAS Hobart is absolutely flying

Another interesting story is Tasmania. Typically the Apple Isle loses population interstate, and this has been the case in most years for at least the last decade. But in 2016-17, Tasmania recorded positive interstate migration, to the tune of 741 people. This may not sound like much, but it reverses years of losses. There has been a lot of talk about Hobart’s housing market and it may be that people are seeing Tasmania as a more affordable option compared to Sydney and Melbourne. The ACT is also recording gains in interstate migration for the first time in a while.

Australia’s population continuing to grow rapidly | .id blog

 

It isn't only Sydney where you need half a mil' for a block of land....
No Cookies | The Mercury

 

Propertyology's 2018 market outlook

What is driving the Hobart property market?

As predicted by Propertyology when we began investing in Hobart in mid-2014, the Tasmanian economy has been the most improved in Australia by a long streak and, as usually happens, its property market followed suit. The Apple Isle has some of the best agricultural products and tourism experiences in the world; Hobart is also a beautiful university city. But it’s only recently that people outside of Tasmania have grown to appreciate this. Chinese President, Xi Jinping, made a special visit to Hobart (and only Hobart) in 2014 to foster business relationships and now the secret of Tasmania is well and truly out.

The rate of employment growth in Hobart over the last year was 4 times the national average and double the next best capital city. The economy doesn’t appear to be slowing down either; job advertisements have a very steep trajectory. Records keep being broken in retail trade (the cash registers are ringing loud) and visitor volumes (domestic and international). The strong economy and high consumer confidence means that locals are keen to transact in property and there certainly aren’t any affordability barriers.

 

What pockets of Hobart are good for investment at present that make sense both from rental yield and capital growth?

 

Best areas for capital growth and strong rental demand are
Sandy Bay, West Hobart ,North Hobart , South Hobart , New Town all these areas are within 5 km of the CBD and are full of old period Homes with high income owner occupier residents. Many cafe's Restaurants shops and bus routes.
For example this beautiful house in West Hobart ( we checked it out 10 yrs ago ) has just sold for close t o1 million and looking at the history good homes in West hobart perform really well as long as you don't mind the lower yield !
77 Hill Street, West Hobart, Tas 7000 - View Sold History & Research Property Values - realestate.com.au

Troy

 

Hope those traveling to Hobart gave booked their accommodation. .... the Mercury reported that today had record number of flights landing in one day.

 

Interesting comments from the REIT boss - 2018 will be the ‘year to sell’ says Real Estate Institute of Tasmania boss Tony Collidge - realestate.com.au

No Cookies | The Mercury

 

yummy pictures indeed.

 

Yes, this is combined with Tough time for rent-seekers
with renters camping with family/friends due to investors choosing to sell the property as vacant possession. I don't see the issue with selling with a tenant in place (has worked for me), particularly if the tenant is on a week-week tenancy.

 

Well if the buyers want to move in asap as their ppor then it can be an issue. Also if the buyer/investor feels the tenants are paying below market rent they may want to buy vacant possession and get in new tenants paying market price. Also week to week basis rentals may not offer the security many investors like, which is 6-12 months contracts.

 

We just had a vacancy in a unit in New town . Normally have 1-2 inspections and 1-3 weeks to rent .

This time , 15 at the first open and the agent had 7 very good applications plus others .

Saw something on the news about one family having to camp because they couldn't find anything .

Cliff

 

We recently changed PM's after having one too many things slip through the previous PM . Not convinced this one's any better , but we'll see .

We have a tenant who had gone on to a week by week lease . We gave her notification of a rent increase and she signed new lease ( now it's easier and a more predictable path to get rid of her ... )

Cliff

 

I hear ya. For me PM's are probably one of the weakest links in this whole game. No matter what I have tried.. at best they are just 'acceptable'. Good luck with this new one

Yeah extra flexibility there.. though in Brissy I keep hearing nightmare stories in the lower socio-economic areas.. some tenants are just disasters one after another. Would be immensely frustrating I reckon. We are sooo lucky that we've never had any major tenant issues over the years. The usual tribunal nonsense once in awhile but nothing major.

 

If tenants are going well , no one jumps on the forum say " hey I've got a good tenant ...:" We Only hear about the bad one .

We've never had a property trashed or has any significant damage , but certainly people can loose a job ( if they have one ...) and some tenants will be unreliable . We been to the tribunal a couple of times in the last fifteen years . the only time we had any un-reclaimable rent have been because the pm has stuffed up and that was in Ipswich .

With more people rent properties privately , tenants know if they have a bad track record , they're less likely to be picked up going that way as private landlords don't always have access to the naughty tenant list ..

Cliff

 

That's a very good point and easily glossed over..

 

I have found a pm Im happy with in tas. A year and a half with Petrusma - I've had no dramas but the pm dealt with a few for me pretty adeptly.

Fingers crossed my two new agents in other states work out. Not wrong about the weak link @Leo2413

 

No Cookies | The Mercury

State Government is also working on a big campaign to woo Sydneysiders to Tassie too! Quite light on details. I won't be surprised if there is a massive backlash from Tassie residents due to:
- Low rental vacancies leading to higher rental
- Tassie already having the third worse traffic congestion in the country
- Less jobs and less pay
- CG already up ~18% last year and expected to increase by 20% this year which means houses are less affordable for residents who are already earning less wage than mainlanders
- Poor infrastructure and public transport
- Mainlanders already bidding up prices for investment properties so imagine what will happen if owner occupiers get a job and move down too!

Obviously positive news for all the investors here, just questioning why the government would want to do this in the first place. Looks like it's all happening for ol' Tassie!

 

Hobart is maturing in so many ways. The café strip through North Hobart looks like a mini Melbourne strip with a lot of young professionals enjoying drinks and live music. The 'home grown' appeal of produce is also doing well.

why? Competing with other cities. The fact that Hobart has better tourism figures than Brisbane says the government is also bringing it together. There are stories about younger business owners setting up in Hobart. Why not?

Coming into it's own.

 

How do you figure that?

 

Reinforcement of his preconceived view that he isn't going to invest further in Hobart , so it's not going to go out , so lets find anything that back up that view , even if it's incorrect.

CLiff