TAS Hobart still good...?

Hi guys,

I created this thread after I just realised my last post "Hobart Second Investment Property" when posted was incomplete for some reason. Anyways let's start again.

Basically after some guidance. I recently bought a house (600sqm) in Lutana this yr. and now looking to purchase a second investment property in Hobart. I have 2 q's:

1. Is it still a good time to invest in Hobart?
2. Any thoughts on what suburbs to look into? I was considering suburbs 15-20 kms away from the city as I'm chasing high rental yield this time.

Looking to add a property with high cash flow to the portfolio. I realise that the capital growth in this case might not be as good as buying close to the city. But I'm hoping the Lutana property will have decent growth.

Would appreciate any feedback.

Cheers

 

Do you live in Hobart? Why do you want to purchase another one there? Do you have any in the other state? Have you thought about diversification? What is your goal and strategy? What is your budget? And a lot more questions that's why it is hard to answer your questions. However, my 2c comment is there are still good deals in Hobart but be careful not to get stuck there. At the end of the day, it is a very small market with a long term prospect not so good. Anyways, I also bought one in Lutana recently. Would like to have a chat with you if you don't mind (pm me).

 

I live in Sydney and have a property here and a couple in Brissie. The long term strategy is to be able to buy a house for ourselves in 8-10yrs time based on the properties in the portfolio.

The budget for Hobart is $350k. I agree Hobart is not like the other capital cities. I'm still not 100% sure about another investment in Hobart. Also considering Perth. Looks like a good time to enter the market.

I think Lutana is not bad, some on this forum think otherwise. Hasn't got a bad reputation as a suburb on Homely.com.au

Cheers

 

I have a least 3 friends living in Lutana, none of them complain. Of course it is not as lively as New Town or even Moonah but it has a good neighborhood feeling and quite close to the city.

 

I live in Lutana. We have beautiful views and are 5 mins from the city.

 

Yes, that's what my friends say. Especially families with kids, they want to be in a family friendly area (like Lutana) not the busy Moonah. I used to live in Hobart. In my opinion, Lenah Valley and Lutana are two of the most family friendly areas in the North.

 

Just wondering what investors thoughts are on Hobart??? I believe the clock for Hobart is sitting at about 9oClock (rising market)...

Will be good to know what other think of the market...

 

hard to tell and it kind of depends on whis been pushing the market
if it' mainly investors then it' probably at 11oclock as yields are getting to the point where it's not so attractive
if its residents then it' probably at 11 o'lock as well as I think most locals would struggle to finance 500k loans
if its retirees then it could well be 9 o'clock but only in your prestige markets

 

Yield in Hobart is still way higher than in Mel/Syd. Entry price is still very low. Vacancy rate is super low which may force rent higher. Hence I think there is steam left in the tank, maybe 12-18 months of good growth. After that, it depends on the federal election outcome, Royal Commission Bank investigation, interest rate, etc.

 

yes it is much higher but it is also in reality just a large town. Investors would expect a higher rental return to justify the increased risk of a prolonged period with no capital growth.

for Hobart this was about 10 years last time so you could be buggered if buying something that isn't cash flow positive or has a development potential
Hobart builders / councils will soon catch on and there will be a huge boom in new housing. I wouldn't invest in Hobart based on the current rents. It's similar to the mining town rental situation but obviously not quite as extreme. The rents will come down when they start developing and the prices will follow soon after
well done if you've made good money already but I wouldn' be jumping in to glenorchy for 300-350k when I know that you could buy for 180 two and a half years ago
lutana and moonah still seem ok value and are better regarded by younger crowd
than glenorchy

rentals on the market have increased slightly will be interesting to monitor the trend

 

REIT came out last week (The Mercury) and said the market is showing signs of slowing. When the Real Estate Institute says they think it's slowing...I'd say we are at the end of a boom. Particularly inner Hobart, Howrah and Glenorchy.

 

Seeing renovated places in Lutana priced to sell at the same price as 1950s "original condition" house sold twelve months ago.

 

Can you post the link?

 

The REIT president Tony is always talking negative about Hobart. When it was booming in late 2016 and early 2017, he had spoken not just one time about Hobart was going/had to cool down.

 

So can you tell me where else we should invest if regional towns (including Hobart) are not good. Or you are saying that not to invest in property at all at the moment? Have you tried to do any development in Hobart? Do you know that it is extremely time consuming? Do you know that the council is a pain in the *** to deal with? And it is not just Hobart doing almost nothing for about 7-10 years before this current boom. Sydney, Melbourne, Adelaide, Brisbane, etc are the same except Perth and some WA QLD towns where there was a mining boom.

 

And by the way, I do not think Hobart can have a good and prolong growth. But it is still a good market to find a good deals now. Just need to do your number carefully.

 

I could, it's possible to find. But I'm going to keep that particular information to myself. Just look at the suburb carefully and make your own decisions based on that.

 

Hi Hobart Chic
could you post that statement from the REIT - I would be interested to read it.

 

According to realestate.com prices in Lutana have risen significantly in Lutana in the last year

Lutana Property Market, House Prices & Suburb Profile

 

Tasmania's booming real estate market could be about to soften, industry warns you can take a read. There are a number of other statements made by Tony since 2016. You can search in google.