TAS Hobart is absolutely flying

Wow , that’s one of the most positive articles I’ve seen written about anywhere .

Might have to think about buying there ...

Cliff

 

Which states again?

 

Into the bloodbath?? memories of Sydney at the height of the market.

 

Unfortunately we’re not buying at the moment .

Sydney started moving seriously in late 2013 , but we’d watching the market closely for around a year before and saw things change rapidly over the course of around one month .

Sydney didn’t peak until mid / late 2017 so four years later .

Hobart has been for for around a year ( outer Hobart more recently ) so if we take that as a guideline I think there’s a good 2-3 years of movement to come .

Even on this forum , Hobart / tassie still isn’t somewhere that taken seriously as a viable option by mainly , but with Sydney peaking and off the boil , Melbourne closing to the peak , the only place I’ve seen mentioned in the main stream media as somewhere to watch this year is Hobart . The only time Brisbane gets mentioned in the main stream media is in relation to warnings about the oversupply of central units ( though Brisbane watcher know the central areas are movin , and eventually the rest will move ...) .

So , I think there maybe a lot of interest in Hobart by a lot of people and being a relatively small market you don’t need that many people to move it

It’s trendy to ridicule the mainlanders for buying there , but I’ve seen booms driven by outsiders in the past , while locals watching on saying the outsiders are crazy , stupid , or uninformed . Reality is they’re seeing the bigger picture , looking at value for money , low entry price , and good returns .

Oh , and some crazy people actually want somewhere that’s peaceful , quiet and picturesque ( with nothing to do ...) , and don’t want to live in the middle of Sydney , with its clubs , resataurants and horrendous , worsening traffic and commute times .

Cliff

 

Another well considered post @See Change and certainly agree with everything you note. My initial thoughts were that Hobart peaks are a lot sharper than Sydney peaks, but this is a very uninformed comment. Agree with your comment about the mainstream media.

Absolutely, the Hobart news has many articles about mainlanders (and many gen Z/millennials) coming to Hobart.
It isn't the sleepy town it once was (walk down North Hobart on a Sunday afternoon and listen to the live music and gen x-z'ers clinking their glasses, or look on the bike track running through Moonah to the city and see the bike riders riding to work each morning).

 

Is that the one near the sleepy railway line that goes down by new town . If so , our unit block is right near that . Maybe we should put bike racks in ....

Cliff

 

Pretty sure (I haven't followed it all the way into town). It cuts across the top of New Town across to Cornelian Bay then in towards Constitution Dock. I've heard that it's used by hospital workers, but I spoke with a few others who use it to work in the city. Traffic congestion is shocking in Hobart - doesn't seem to flow, and parking appears an after-thought. The old trainline seemed quite well used when I was travelling around Moonah and a little in towards town.

 

A unit in the same block as ours in View st Sandy bay sold in 3 days. We are currently renovating our IP unit and the open home had 63 people lined up along the elevated walkway 10am to 1030 am on Saturday LOL i counted them as i was preparing the balcony rail for painting. offers over 350 k - i know it went for over 385 k ( good for our equity) as someone we know missed out. Monday morning the agent has another 10 people look through then as i looked after lunch it had sold ! 7/7 View Street, Sandy Bay, TAS 7005 - Unit for sale #HE3HJ6 - LJ Hooker Hobart

 

+ 385 for a two bedroom unit in Hobart ..... Wow . What would it have been worth before the current boom ?

Troy , whats the rental in that block ?

Cliff

 

It sold for $396.
7/7 View Street, Sandy Bay, Tas 7005 - Property Details

I think that's pretty cheap. There are 2, 2 bedroom units in North Hobart with an expected price of mid to high 400s. One of them is unrenovated.

 

House near the beach for less, price 325k. A bit of a drive perhaps but a nice spot:
12 Harmony Lane South Arm Tas 7022 - House for Sale #127415406 - realestate.com.au

 

'Sleeping giant' charts whopping 17.3 per cent house price growth

"Hobart has been declared the unlikely star of Australia’s 2017 property market, charting a stellar 17.3 per cent growth rate in house prices, putting the usual mainland glitterati into the shade."

 

Hi Cliff
The rental at 7 view street varies from 290 pw for the ground level ( not a lot of natural light and un renovated ) to 380 pw for one that i know of that has been rented out recently. our Tenants moved back to Melbourne after finishing their uni degree's so we decided to renovate ours ( unit 10/7 view st)

I know this block well as my mother bought number 4 as an investment in 1980 for $ 20,000 she sold 2 years ago for 280 ,000 ( the unit was un renovated and not the most modern)

Troy

 

Hi Guys,

Just wondering if someone could recommend a good building and pest inspection in Hobart?

Also I'm studying the area, looking to buy a property in Hobart spend around $300-$400k and so far I'm basing my research around Moonah and Glenorchy.

Any advice will be much appreciated.

Fabio

 

You dont really need pest inspections in Hobart as there are no Termites in Tassie. I have only used Jims for the building and i found them to be fairly thorough.

 

Great thank you!

 

you could easily fetch a place in Glenorchy for 180k ish a couple of years ago.
Now it seems 280-300k is bottom end of pricing
Id be weary but thats just me.
Personally i dont think Hobart will boom for 3-4 years. Even if it does then its already been going for 2 years (give or take)
So if prices were to double then your bottom end property will go to around 360k.
You stand to make around 60k after purchase costs. This is ok but then you will likely have a period of nothing or even slowly decreasing prices for many years.
Not trying to scare you off hobart as its a nice place but you might have missed the boat, or you might not have. Noone really knows

 

You made a very good point but yields still ok and I can foresee growth for the area hence I'm looking to buy over there

 

Hi Strongy

Whenever I've looked at price expectation , I've always used the average of the previous peak to give me an estimation of my target price.

For me , It's worked in all the previous areas I've bought in .

So the figures I'd be guesstimating for Glenorchy are

Previous peak in 2010 - $ 268 K , gives target of over 500 K
Previous trough in 2013 - $ 232 K
Average in 2017 - $ 312 K .

For Claremont the comparable figures are

Previous peak in 2010 - $ 26O K , gives target of over 500 K
Previous trough in 2013 - $ 239 K
Average in 2017 - $ 296 K .

Is this set in stone , nup , nothing is ever set in stone in investing . This is just what I use to help guide me in making decisions I'm comfortable with.

Cliff

 

Hi Fabio
As others said no need for pest inspection and jims is good.
Moonah is a great up and coming suburb that has a great mix of housing stock and is not far from the city. The shopping cafe strip has really transformed in the last Houses are selling fast and a while back every place i called about that was online has sold in under one week.

As for Glenorchy it has all the infrastructure shops etc but i am not really a fan. It has a high rate of crime and a low over all income from its residents doesn't leave a lot of wriggle room for higher rents and capital growth in the future. 2016 Census QuickStats: Glenorchy (Tas.)
2016 Census QuickStats: Moonah

New Town , Lenah Valley , North Hobart , West Hobart , Sandy bay , Kingston are higher income areas that will deliver better Capital growth due to the lifestyle drivers and residential income.

Troy