TAS Tasmania

Agree Lauderdale is potentially risky with developer activity arriving. My mistake, I meant Lindisfarne (ie suburb in between Bellerive and Geilston Bay on the water on the Eastern Shore)- just seemed to type Lauderdale with a not too uncommon brain fart!

 

I dont think too much development will happen around Lauderdale for a while, Lindisfarne however is possible. Some small development already happening there in places.

 

I read in some articles that population growth into Hobart is increasing (even more so than Adelaide), is this the case, and what demographic is moving there, retirerers or are there young people as well. There has also been talk of Americans investing there. Are climate change refugees a ligitimate driver now and/or people wanting to escape the dangers of the world we are living today?

 

Thanks.
Looking for a block which is over a quarter of an acre and has good soil to grow things. Any suggestions?

 

Depends what you want to grow, and if it is an investment as well. Down the Huon valley there is lush soil with good rainfall but property prices wont rise like they do in Hobart area. South Arm/Sandford has Sandy loam for good Pinkeye potato growning but much less rainfall. Really depends what your after.

 

My gf and I are looking at buying around Launceston for a cheapy.
Just had a look at the history of median house prices over the last 20 years. 60k to 220k looks impressive but over the last 10 years it has not moved. Now looking at that it surely has to move again soon....
Thoughts?
The yield is rather high, if we put in a 20% deposit it would be paying itself off.

 

Smart cookie . That's exactly why we've bought there . that and the low vacancies .

Personally I'd see if you can pay 10 % deposit and buy two .

Cliff

 

That's sound reasoning and basically how we operate.

At the moment the general concensus on the forum is buy something that has had strong growth % the last 5 or 10 years. People are buying stuff that is seen as a 'sure return' with low rental yields.
Its all good until the gravy train stops in Melbourne and Sydney - which it has in the past, then you are offloading tens of thousands per year on each property and receiving no capital gain

Launcestion wont make you rich quick but its extremely low risk buying at a 10 year bottom and a property that is neutrally geared.

One thing to consider is that with APRA changes the days of being a slow and steady neutrally/ positively geared investor may be over. It may be hard or impossible to buy 10 neutrally geared 250k properties these days depending on your incomes. You need to speak to your broker and work out what you can borrow median term
I

 

I did notice the 1% vacancy rate in the suburbs that I've been looking.
Buying 2 right now might be a stretch as we have just enough for a 20% deposit and buying costs. Give it a few months and we will be able to pull the trigger on another though. (We'll have to save up for the buy in costs for the 2nd)
I've only just started property investing. I only have 1 investment and my gf has none. Would buying 2 in Launceston be putting to many eggs in that basket for beginners?

 

Why do the APRA changes have to affect the whole of Aus and not just Syd and Melb? Haha

I'm thinking that if we get stuck and can't borrow for another we could manufacture equity via renovation. I'm looking at buying older houses on the lower end of the spectrum.

 

When we started investing back in early 2000's we bought 7 in Logan and about a year later 7 in Rockhampton .

We have at time bought one in a market , but we tend to buy multiple .

In Launceston we bought two houses each split into three units .

I'm working on the basis of being able to get my research / timing correct .

It's easier to buy two in one market compared to buying in two different markets .

If you can get 90 % finance , I'd do it and put the extra 10 % in an offset so you can have access to it if you need it .

Once you spend some time , the Australian property cycle is fairly predictable , though in terms of how long the cycle can take can vary .

I already know where I want to buy next once Hobart / Brisbane move up significantly .

Cliff

 

Perth?

 

Lots of action here but price sensitive

Some screaming bargains within 10km cbd villas/units

 

Where did you read this? Very interesting.

 

I think it was an article in domain or real estate.com. They were saying that more people were moving to Hobart than Adelaide. I will try and find it.
At present Margaret Lomas and Tony Hayek are not keen on Hobart but Simon Pressley (propertyology) is.

 

It was in the media in the last 1-2 weeks I think .

Cliff

 

Darwin?

 

No , that comment was in regards to Hobart population growth , not future purchases .

Cliff

 

which parts of launceston do you recommend cliff? i know hobart very well and am considering launceston but not overly familiar with it