TAS Hobart is absolutely flying

All of the above , though to be honest , I'm selective about what kind of investment .

Take Gladstone , lots of jobs in the building phase , but not many to run the facilities long term .

A friend who runs a private equity business that buys mid size commercial buildings was in Hobart a few months ago and dismisses it as he couldn't see any cranes down town . Me I thought great , no over supply issues , such are threatening in some places .

First thing I look at is vacancy rates . sqm

Cliff

 

hi dave
i only have IPs in hobart but have PPR in Sydney to compare. My council rates for a 3BR house are $380pq, water rates about $250pq (after tenant pays overusage), landlord insurance $600 with AAMI. These are all well below my sydney rates, but my PPR is a substantially larger investment

 

Hi
Yes the market has certainly heated up down here over the last 12 months.
We bought a renovated IP unit in Sandy Bay last June for $ 305 k and can't see anything that for sale close to that price now its in a block of 14 at the end of a nice quiet street 200 m from the University and 3 km from city.
Recently bought a 2 brm IP character House in New Town fully re wired /plumbed full reno for 430 K which we thought was a great price and also 3.1 km from CBD.
Our PPOR is Old Beach a beautiful area 18 km up the river great water and Mt views but slower CG.

 

International developers betting big on Tasmania's tourism boom

More good news

 

No Cookies | The Mercury

 

The Mercury

'Hobart’s smoking hot home value growth leads Australia'

 

Reading your post, i fell upon this interesting story (not about Hobart per se but in Tassie)

No Cookies | The Mercury Mole Creek home under the hammer

 

In Tassie, there are some properties are co-joined with neighbour's property, i.e. there is a common wall between neighbouring houses. It is similar to duplex. Is this arrangement going to significantly impact the value of the property? Do both houses need to be knocked down to rebuild or is it possible to keep the common wall while knocking down one house? Anyone has some knowledge of this type of property?

 

Hi Mark

it might be best to contact the relevant Council to ask those questions. I find Councils are quite helpfull

 

Note these types of property would have likely been public housing at some stage. Generally in less attractive areas. Often come with a decent size block though.

 

What are everyone's thoughts on investing in Hobart vs Launceston in the sub $400k market?

I know you can get a very decent place in Laurnie for under $400k but I would think that long term capital growth in Hobart for the same price point (i.e. Moonah) would be a better long term investment for Capital growth?

 

my preference would certainly be for hobart. you can still get good solid houses for that price in bellerive, howrah, lindisfarne, moonah, possibly lenah valley. i am not overly familiar with the best suburbs in launceston, but the CG has traditionally always been lower.

 

Thanks Pat. Moona looks like a good entry point into Hobart market at 1st glance.

 

Moonah is a good place , but when we looked recently everything was flying out the door.

Pat , when I've looked in the past Launceston , % wise has had similar levels of growth . The question at this stage is how much of the growth cycle have people missed out in Hobart at this stage ( not much if you go further out ) or do you buy something nicer and more central in Launnie .

We've already bought two in Launceston this cycle so opted for Hobart recently .

Cliff

 

What are the better areas in Launceston? I stayed there for a week, nice little place.

Has it moved significantly yet?

 

i must agree with Cliff above that Hobart has moved significantly and it might not be the best time to buy there now. I wish I had bought in Moonah 18 months ago but bought in Howrah instead. Moonah has been one of the top performing suburbs. A little further out has not really had the growth yet, so my last purchase was in Berriedale, about 6km further north of the city than Moonah. Berriedale, Rosetta and Montrose are good safe lower middle class suburbs that I predict will get a lift from the proposed MONA redevelopment in the coming years. Big blocks, lots of houses have views. i bought a 4BR house for $329k.

 

Thanks for the great insight into the Hobart market Pat.

Are you getting a decent rental yield on your most recent purchase?

 

Thanks. The planner from council said that the complexity depends on how the common wall was built. A building surveyor needs to have a look at the actual houses to make the assessment.

 

That is correct. There are quite a few government houses in the area. However, I could see gentrification is taking place.

 

my yields are all pretty good. all properties slightly positively geared after tax. the most recent one renting for $380pw, 6% yield, with potential to have separate 3BR house and 1BR unit which would put yield over 8%. other properties ranging from 5.2 to 6.2% yields