TAS Hobart - Yay or Nay

Discussion in 'Where to Buy' started by TedClay, 24th Nov, 2019.

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  1. TedClay

    TedClay New Member

    Joined:
    24th Nov, 2019
    Posts:
    2
    Location:
    Melbourne
    Dear all,

    Quick summary of my position:

    1) Currently hold 4 investment properties (1 x Brunswick East, 2 x Bell Park, 1 x Melton)
    2) Have approval for approx $500k lending and have approx $200k deposit available
    3) Investment strategy is largely focussed on buying properties on large blocks of land that can be subdivided and built on and renno'd. Looking to buy and hold long term

    I have been eying up Hobart for a while, suburbs like Moonah and Glenorchy. There's a lot of mixed opinions online, but most reading I do seems to focus on the next 2-3 years, rather than say the 10-20 year outlook.

    I really like the look of this property: 44 Johnston Street, Moonah TAS 7009 - House For Sale | Domain

    Rental yield is good. Location is walking distance from Moonah centre. I have the funds/lending to build the house in the back. After purchasing and building, the total cost would be approx $800-850k. I would hold 2 x good condition nice dwellings in central Moonah and the asset as a whole would make around $15-20k per year profit, after considering rent, interest on loans, rates, land tax etc.

    What are peoples thoughts?

    If Hobart slows down for a few years, is this still a good buy if I am planning to hold for 10+ years?
     
  2. Mark

    Mark Well-Known Member

    Joined:
    11th May, 2016
    Posts:
    310
    Location:
    Sydney
    I think it is better to consider other markets which just start to rise. Hobart market had its boom in the last few years, it is unlikely that you will enjoy exceptional growth in the next 5 years. Please also be aware that the construction cost in Hobart is higher than that in Melbourne.
     
  3. fols

    fols Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    720
    Location:
    Sydney
    Could be a bit late to the party? It’s been one hell of a party though.
     
    Stoffo likes this.
  4. TedClay

    TedClay New Member

    Joined:
    24th Nov, 2019
    Posts:
    2
    Location:
    Melbourne
    Yeah I am starting to feel maybe it's a bit too late in the cycle
     
  5. andrew1986

    andrew1986 Member

    Joined:
    24th Sep, 2018
    Posts:
    5
    Location:
    Hobart
    I live and invest in sandy bay, a suburb on the fringe of Hobart city. We are coming into the busy season now and from my observations there looks to be quite a bit more stock coming onto the market this year than the last few, however houses in the inner city suburbs are still selling very quickly and usually well above asking price. Looks like the demand is still there. Have to wait and see how we go this year but looks promising for another year of strong demand. Won’t be complaining if it matches the last couple!
     
  6. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    4,035
    Location:
    Sydney
    Might be some investors looking to take some profits :p
    Or unload properties that no longer suit their investment goals :D
    Owner occupies looking to upgrade maybe ;)
    Like any market, you need to persist doing your own due diligence :cool:
    Finding a bargain or below maket property will take a LOT of worko_O
    There will always be bargains to be found, there always is :D
    Just need to do the work (to what suits your skills/risk profile)
     
  7. grasshopper

    grasshopper Member

    Joined:
    11th Jun, 2017
    Posts:
    14
    Location:
    Sydney
    How is Hobart's weather faring climate change? Was Tasmania hit by drought and/or extreme weather?
     
  8. The Grinch

    The Grinch Well-Known Member

    Joined:
    22nd Sep, 2019
    Posts:
    229
    Location:
    Cairns
    Missed the boat, good time to sell but can do much better in SA or QLD at this point in the cycles.
     
  9. Tex333

    Tex333 Member

    Joined:
    11th Mar, 2019
    Posts:
    18
    Location:
    Tasmania
    no extreme weather. Beautiful 21 here today

    we are actually starting to get quite a few QLD move down here as it’s now too hot in some parts of QLD for some people

    they can buy inner city beachfront property here for the same price as suburban QLD
     
  10. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    20th Jun, 2015
    Posts:
    1,279
    Location:
    Oz
    Its lovely. Depends how you define extreme though. I was down there recently and caught summer snow. In my world that ticks a slightly extreme box. But yes... in the light of heat and fires and drought in some parts of the mainland, it may well catch a nice little demographic ripple of folks chasing cooler climates.
     

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