Tasmania tops population growth . Now 4th ranked economy .

Checked corelogic data lately?

 

Oh Gee....So now posting about Tasmania is ramping.

So I'm moving the market by posting on this forum . I'm only report what was plain to see to anyone with any idea of what they're doing in property investing and as we can see , what I was talking about happening awhile ago is actually happening ...

Pentanol , just because you fail to see ..... Ah .. ohhh light bulb moment folks !!!!!

Pentanol ... Your from Tasmania , that explains everything ,........ Why you can't see something that's happening right under your nose and why you choose to deny it's existence .

mmmm

Cliff

 

One further ( serious ) Comment Pentanol

The majority of places we've bought in over the years we've been investing in are not places I'd want to personally live in . Each dollar we've made investing in Logan , Rockhampton , Townsville and Hobart is worth the same as each dollar we've made buying in Mosman and Manly in Sydney . The reality is 90 % of the hassles I've had in our investing career have come from our " nicest property ". Getting our own personal biases out of the equation has been an important part of the equation.

Cliff

 

Household spending keeps Tasmanian economy growing, ABS figures show

 

I was holidaying in Tasmania and found out a lot of interesting information and see why it is booming. Biggest problem is most of the migration is retirees and 80% return back within 3 years.

Some snap shots;

- 3 new hotels opened in the last 16 months and more in the pipeline
- Farming is massive imparticular fruit/veg which 80% gets sent to mainland
- Wool is big income earner there
- Tourism is currently 3 biggest industry soon to be second

 

I guess we shall see what happens.

FYI my family house have made ten fold increase so I'm very aware what's going on and significant increases in other interests. I actually convinced my parents to hold off selling our place because I felt the boom was coming - this was way before I had anything to do with properties.

Not all investors have the ability to get in and out like you do or want to. I know I don't, I'm sure you know how expensive the transaction costs are like, my hope is to buy and hold forever. Tassie is not a buy and hold forever - My fear is that Tassie will become like Sydney is now in a couple of years time except without migration supporting the house prices.

 

Are any of your IP areas affected? Autumn has arrived with a loud, loud bang

 

Just another normal day in Melbourne though.

 

Weren’t the greens voted out a few years ago

 

Is anyone investing in Tasmania? The yields look pretty decent from a quick look..

 

Last time I looked during the boom cycle you would be pushing to get 6% gross, I expect less today now that prices have jumped/risen??

 

Im quite surprised about the lack of attention that Tasmania receives considering how well the economy is going and its turn around in population growth.

 

Rents are going up .

We bought in Claremont in late 2017 . Rent at that time was 330 ( paid 267 ) . Rent recently went up to 400 .

Cliff

 

“The fastest-growing cities, in terms of Chinese buyer interest, are Hobart, Brisbane, and Canberra,” the report said.

Of those, Hobart is convincingly leading the pack, experiencing 77% more enquiries than the year prior.

Chinese buyers are getting ready to flock back into Australia's 'cheap' property market – with one city emerging as their clear favourite

 

The thing that always frustrates me with property investment is the emotional factors driving property purchase v economic fundamentals. In particular the idea about sentiment and human interest/human behaviour (Property Couch). I'm thinking that maybe many owner occupiers are buying into hobart to get away from the heat (Climate refugees) big city population stress and the beauty of the area.
From an economic point of view Hobart is a very small market, maybe twice the size of Ballarat for example, with not that many jobs available. Are there not more economic drivers in Brisbane for example.

 

if you have cashed up retirees moving from Melbourne and sydney , I don't see how that isn't an economic driver .

Cliff

 

Ok true, but couldn't those retirees move to say Adelaide for example where its currently cheaper, they have the most modern hospital and the warmer drier climate which is better for their arthritis.

 

Has Tasmania's growth been based on a head count?

 

They could , but Hobart and Tasmania would considered more attractive to many people .

One major concern driving people there is climate change . Tasmania has a reputation as a place to go if things get bad ( ie for climate change doomsdayers / preppies ) . Check out the summer temps in Adelaide vs Hobart . There are many people ( including one of my kids ) who don't like the summer heat in mainland Australia and prefer winter ) . There are also a lot of " white flighters " , though ironically for them , the group of investors who percentage wise are increasing the most in Hobart are Chinese investors .

If I was looking to get out of Sydney , I'd think about spending summer in Hobart with a small house around somewhere like battery point and a boat house in Cornelian Bay , and then a winter retreat in Trinity Beach or Palm cove .

Cliff

 

4th ranked economy...pfftt..old news now

Tasmania is now solely in third position. In fact the strength on relative population growth, home purchase and construction could see the Apple Isle battling with NSW and Victoria for top position in the year ahead.

https://www.commsec.com.au/content/...2019/CommSec_State_of_the_States_July2019.pdf