TAS Tasmania

What is happening in the Tassie property market
Is it a good time to sell or hold

 

A lot more stock on the market in Tassie in general recently. Around 3300 properties for sale total in Tas currently vs maybe 2700ish at the lowest from memory. Good stuff still seems to be moving, not as quickly as before but still above asking price for the most part. Not currently living in Tassie so just my observations from afar.

Whether or not it is a good time to sell is an entirely individual decision.

 

It’s boomed and probably reached its peak .

we hold two small unit blocks in Launceston and we’re keeping them for cash flow moving forwards. I don’t expect capital growth for a while ? 10 years

We held propert in Hobart and sold those due to capital growth and used the profits to pay down other debt .

unless you’re moving there , I wouldn’t be buying in Tassie .

cliff

 

Is it a good time to sell or hold

 

What does your research tell you?

 

Umm I m not sure... At present where there is a slow down in Hobart, some regional Tasmanian areas are showing low supply and high demand which is pushing up prices further and listings are selling in three days to a week.
However I don't know if this applies to land which is being sold by mainlanders and bought by Tasmanians in general.

 

I was in Tassie for the last two years - in Launceston. I think the market there has peaked - saw some really peak sales a few months ago, but things appear to be taking a bit longer to sell and I am seeing asking ranges lower. I note that RE.com.au said Launceston was a regional town to watch; maybe? It is now a UNESCO Creative City, and as a marginal federal seat often gets a lot of amazing Commonwealth investment, so it's got a lot going for it.
Proper locals tell me that Launceston typically flatlines after a period of growth until the next growth period (i.e. doesn't really go backwards). This is anecdotal so you could probably serve up a 10-year graph that disproves it, anyway do with that what you will.
The rental market is super tight, and I think there is scope for more mainlanders to relocate there for lifestyle reasons (and it's quite affordable, especially if you can work remotely with a city-type salary). Good quality, desirable family houses in the right locations do really well.
Put all that together and as long as people can afford to keep paying a bit more for the house they really want to live in there may be some more fizz in the bottle but I also think interest rates may cool things down a bit there too.
I bought a house there in Oct 2019 - it is currently delivering 7.8% p.a. against the original purchase price. Fixed interest rates as well last year (hard to see them getting any lower at the time). It is hard to see why you'd sell if you've benefitted from the CG and have the yields going the way they are, unless you needed the CG for something better?

 

I see north west Tasmania you can get positively geared freehold house and land.

I realize it is not exactly a boom area but would it be a good long term hold? Can't really afford negative geared at the moment, and would be a nice "set and forget" property.