TAS Tasmania

Discussion in 'Where to Buy' started by Darlinghurst Boy, 1st Aug, 2015.

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  1. annaw5599

    annaw5599 Active Member

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    I'm in Tassie ... Investment in Somerset paid $145000 about 8 years ago rented out for $220 a week. So decent returns but capital growth is terrible - market value now would be around $170000. We also have a PPoR 15 mins from Burnie opposite the ocean $240000 about 6 years ago.
     
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  2. See Change

    See Change Well-Known Member

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    8 years ago would have been close to the top of the boom .

    We've just bought two in Launceston which were bought 7 years ago by the sellers for the same or more than what we've just paid .

    I'd expect the next 8 years to be better

    Cliff
     
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  3. annaw5599

    annaw5599 Active Member

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    Yes it wasn't an investment at the time - a PPOR for my hubby and his first house. It's on a big block so we are thinking of knocking down and building 2 3 bedroom apartments on the block. Let's hope the next 8 years are better for TAS
     
  4. See Change

    See Change Well-Known Member

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    We picked up our block of units in Hobart c/o the back in the early 2000's . One of our best buys so far .

    We bought two houses in Launceston split into 3 units each towards the end of last year in the 300's . If we were looking to buy at the moment in Launceston , I'd be having a serious look at this property . The gross return alone ( over 10 % ) makes it worthy of further assessment .

    It's not for everyone and is really for someone with experience and deeper pockets to look at . Having 8 units in one building seriously restricts the ability to finance it , so you will need a larger deposit and probably pay a slightly higher rate . Also need to look at insurance .

    DD to start with would be check the basis they're rented at . Standard terms or short term . If it's short term the fees are much higher . What vacancy rates does the block have ? You should be able to get the actual figures from the agent for at least the last two years . Position wise it's close to the CBD and the hospitals

    When the market stops down there , you would not be able to unload this in a hurry . The nearby block on Elphin St has been for sale for years .

    I'd only be looking this if I intended to hold it Loooong term .

    One of the attractions is it has a new roof , rewired and recently painted , so assuming there's not other issues there shouldn't be any major expenses for a while . Obviously needs Building inspection.

    This is NOT a recommendation to buy
    . I haven't seen it . I know the general area but not the specific street . Would be interesting to know the mix of tenants . Be more interested if they were workers from the nearby hospitals .

    Cliff
     
    Last edited: 19th Apr, 2016
  5. See Change

    See Change Well-Known Member

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    John Lindeman in his latest Understand Property Newsletter has the headline
    Time for Tassie to Shine .
    He points out it went up 50 % after the last Sydney / Melb boom . The Hobart average moved from 1/3 to 1/2 of Sydney's average and is currently back to 1/3
    He points out that most of activity is currently in Hobart but does mention that he expects growth to extend to Launceston in the next 2- 5 years .
    He finishes up saying they haven't produced a predictive growth report in Tassie for a while but that has changed and they do predict growth ( and you can buy it now ....... )

    Cliff
     
  6. C-mac

    C-mac Well-Known Member

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    As a tourist mecca for the Chinese tourist dollar, Tasmania perfectly fits the bill. Clean air, wildlife, greenery, low density, and of course fantastic organic food and drink. It's like the Blue Mountains effect for Chinese tourists, but for Australia.

    Could a (historically, proportionally, anyway!) massive uptick in toursim alone, be enough to lift the Tas economy? Remember; Tas is only about 600,000 people, right? Even an an increase of just 50,000 or so foreign tourists per year to the state would exponentially increase jobs (tour bus drivers, waitstaff, hotel staff, vineyard staff, car rental businesses etc...).

    Plus lets not forget the growth and expansion of the 'healthy products' that the Chinese are so obsessed with these days. Bellamys, honey trade, cheese etc. are all thriving industries in Tas.

    The Chinese are even buying 'bottled australian oxygen' these days for god sakes... and yes, there is a Tasmanian air 'flavour' can too hehe.
     
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  7. LibGS

    LibGS Well-Known Member

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    Population is 517,000.

    Long term, Tasmania will improve a lot, due to more people and business moving there, both as a consequence of climate change.
     
  8. strongy1986

    strongy1986 Well-Known Member

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    Get a grip mate

    Its a cycle

    We dont control mother nature
     
  9. C-mac

    C-mac Well-Known Member

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    I think any environmental reasons for substantial emigration to TAS is unlikely in the next century or so, based on current temperature increase projections.

    Instead, if Tas has a massive tourist upswing and big agriculture upswing, i.e. bigger than any other time in history, this might be enough to keep them going.
     
  10. LibGS

    LibGS Well-Known Member

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    I think you need to do more research. I've posted links previously, and references of companies and people moving to Tas now and in the futute for climate change reasons are not hard to find in goggle.
     
    Last edited: 6th May, 2016
  11. See Change

    See Change Well-Known Member

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    Agree re LibGS

    People are retiring to Tasmania now . My sisters " bestie " , despite a relatively successful life couldn't afford the retirement she wanted . Has retired to the North coast of Tasmania where she has bought a nice house in a nice location and can now afford to more than just pay the daily bills .

    She has found there are many people where she has moved to in a similar position to her , in particular people who don't like a hot climate , and those who want a quieter life style / those who want to escape the busy lifestyle in place like Sydney and Melbourne . there's also a new phenomena in Australia ( long present in the US ) of white flight which is driving some of this as well .

    I won't be joining that move as we already have our own patch of paradise bought , currently used as a weekender .

    View from back yard

     
  12. C-mac

    C-mac Well-Known Member

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    I think you both misunderstood my comment.

    I dont deny that Tas will see an uptick of retirees and white-flighters who have their own social and temperature-driven motives; moving to Tas in the coming decade. This is already beginning.

    But mass-swathes of humanity moving to Tas purely due to extreme climate/weather necessitated reasons, well I don't agree, based on the research I have done and read, will happen.

    Happy to leave that last one as an 'agree to disagree'.

    But the first point on the uptick from the human cohorts you mention, totally agree there.

    But thats not to say that Tas won't see other age/social cohorts NOT move in. I believe some will, due to jobs-growth reasons. I.e. if Tourism and Ag pick up, it'll attrat younger cohorts of both mainlanders and foreign segments too.

    White-flighters do exist there in younger age groups too. At Taste of Tas festival I had cider with a couple of randoms who turned out to be late-30's, working-age white-flighters from the UK. Their story was: they got to Syd/Mel and didnt like what they saw, culturally, and didnt want to raise their kids in amongst that, so it was Hobart for them. Just one example, but a real life encounter all the same. They both had jobs easy to get anywhere (him a teacher, her a nurse), which helped.
     
  13. See Change

    See Change Well-Known Member

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    Ok .

    In terms of people moving to tassie to escape major changes in climate , fair enough , simplify because we not seeing changes in temperature impacting on daily life . Hopefully that doesn't happen .....

    I was talking more on the basis of its current climate , and people seeking to move from what they perceive as places that are too hot ( climate and financially ) for them at the moment.

    I find it a bit ironical that out side the general population you also have two specific groups with the white flighters and the Gay community ( more in Hobart I think ) heading down to Tassie .

    Cliff
     
  14. See Change

    See Change Well-Known Member

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    Anyone on the forum buy this ?

    Cliff
     
  15. Antos

    Antos Member

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    How much is your buyers agent fee Cliff?
     
  16. See Change

    See Change Well-Known Member

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    No Fee :(

    Just noted it has sold , so I won't come after you for a fee if you bought it :cool:.

    Posted it because I thought it was an interesting property for the right person and there wouldn't be that many people who would want or could buy something like that .

    I've picked up properties from recommendations from the forum , including one of our best buys . If I knew someone who was looking for a property like that I would have pm'ed them but I didn't .

    Not interested in making money out of property investing other than by what I buy personally . Happy with my job and also have a hobby that keeps me busy .

    Cliff
     
  17. mcarthur

    mcarthur Well-Known Member

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    Cliff, would that have meant a commercial loan rather than a resi since it was more than 4 units?
     
  18. See Change

    See Change Well-Known Member

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    Probably . or higher interest / lower LVR . Didn't go into the details of finance . Obviously it wasn't for every one .

    Cliff
     
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  19. See Change

    See Change Well-Known Member

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    Anyone impacted by the flooding ?

    Our Launnies properties aren't in flood areas , but we're about to undertake a reno of one unit ( so increased return ) . Have ordered kitchen , but wondering if the factory is affected ( some industrial areas have gone under ) , and also thinking tradies might be very busy and our planned work might get delayed ...

    Also might be increased demand for rentals , so might be able to re rent unit for a slight increase in price with out having to do reno ..

    Any thoughts ?

    Cliff
     
  20. Sam Yue

    Sam Yue Well-Known Member

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    I don't know why the utas select Invermay for the new campus. it is a flood plain. If the levees failed, it would be very bad.
     
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