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TAS Time to Hype Hobart Thread?

Discussion in 'Where to Buy' started by C-mac, 10th Jul, 2016.

  1. Mac Fields

    Mac Fields Well-Known Member

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    Yes, I heard this is why the Brown Brothers bought in Tasmania - as the climate heats up, more and more varieties are better suited to Tasmania as the mainland becomes too warm to produce the high(er) quality wines. I heard BB bought down there to get in front of the crowd. Just need the jobs to follow... not sure if wineries employ too many....
     
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  2. Whiteman

    Whiteman Well-Known Member

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    Interesting interview between a NSW real estate agent and Louis Christopher of SQM Research who provides the Boom and Bust Report, towards the end of the interview (at the 10min 45sec mark if you wish to fast forward) he says Gold Coast and Hobart are the markets to be in, in the next two years with the best prospects nationwide.
     
  3. is_don_is_good

    is_don_is_good Well-Known Member

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    Hi Bozley

    I have 3 airbnb apartments in Melbourne CBD that i run with a mate as a side thing. We've got some money saved up and thought about buying somewhere in Hobart because of the tourism and airport runway expansion.

    What areas would be good to look in? I've only ever been to Hobart for a long weekend so I'm not to familiar with what areas would be good for tourists and under $400k. Any advice would be much appreciated!
     
  4. Bozley

    Bozley Well-Known Member

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    Hi rch1987

    I don't think you would find much near the inner city now for under $400. Maybe a townhouse/unit in a block that allowed airbnbs. Steer clear of Battery Point - the council have special restrictions on operating short term accommodation there because of heritage issues.

    You could consider somewhere in Rosetta or Berriedale with a view over the river and MONA. These suburbs are about 20 minutes drive to the north of Hobart and the upswing hasn't really reached here yet from the inner ring. MONA is a huge draw card for tourists and a beautiful view over the river is pretty easy to find in Hobart.
     
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  5. Whiteman

    Whiteman Well-Known Member

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  6. Whiteman

    Whiteman Well-Known Member

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    Work commencing soon on the major part of the runway extension, with completion expected early 2018.


    http://www.themercury.com.au/news/o...y/news-story/23fee5fa43e06037ad7f8c7244a4b745

    "The runway extension is important too for our exporters: our farmers, and for our aquaculture industry. Premium high-value Tasmanian produce such as salmon, abalone, crayfish, beef and dairy products will be in increasing demand over the coming years. Being able to put those products on the plates of the rising middle class of Asia just a day after they are plucked from the oceans or paddocks of Tasmania is a strong selling point."

    http://www.themercury.com.au/news/t...n/news-story/e888aeb52ea2ed81cd265fab62e7e979
     
  7. See Change

    See Change Timing Lord

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    Yet more positive news from the apple isle

    Hobart's booming' say young business people as they move to the island state for its affordability


    It appears young people are starting to return to Tasmania, with housing affordability boosting the population and driving economic growth.


    That is the view of Commsec chief economist Craig James, who said Tasmania's annual population growth was now just under 0.5 of per cent.

    "More people are coming to the state and fewer are leaving which creates growth in terms of housing finance and the job market — so it provides momentum to the economy," Mr James said.

    Kobi Ruzicka and Sarah Fitzsimmons are among the latest additions to the Tasmanian population, moving from Melbourne to Hobart six months ago to open a bar and restaurant.

    "Melbourne is kind of unattainable, there's no way that two young people could afford to set up a new business of any quality that wasn't like a shoe box." Mr Ruzicka said.

    Ms Fitzsimmons said the cost of living was appealing too, as well as work-life balance.

    She has met a number of young people in a similar position and former Tasmanians returning to live in the state.

    "A lot of our friends in the industry down here have said up until a few years ago, you could only go so far in your career here before you had to move to the mainland because there wasn't enough opportunity here," she said.

    "But now people are starting to come back and find their roots again, and have said it's a viable business option now

    Cliff.
     
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  8. John Ferguson

    John Ferguson Well-Known Member

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    I a miss a local and invest locally and have posted previously on this thread.

    Just wanted to give an update of how I am seeing the Hobart market currently.

    Inner ring suburbs are in extremely high demand. There is a massively undersupply of properties in these suburbs and very little stock coming onto the market. I cannot see the demand for the properties in these suburbs slowing at all in 2017 especially if rates stay on hold. Fortunately I purchased two properties in a couple of inner ring suburbs one to two years ago and they have seen significant growth and I am expecting more this year. One property has had about 20% growth in the last year. I did but it under market value though. I would be very cautious about buying an IP at the moment as in demand properties in these suburbs are getting multiple offers within days of being on the market and going above asking price. So in my opoinion there will be more growth for 2017 but as an investor you may have missed the boat as owner occupiers are competeying for these suburbs and are willing to pay above the asking price in order to secure the property.

    The outer ring suburbs are still performing well e.g. Moonah, west moonah but there isn't the competition for these suburbs as the demand to supply is no where near as right as the inner ring suburbs. Also these suburbs generally appeal to blue collar workers whose disposable income isn't as high as the professionals wanting to live near the city. So I don't think they are going to get huge growth. Possibly 3-5% per annum and that isn't property specific. So they don't meet my investment criteria as they are barely outpacing inflation and holding costs.

    Other suburbs that have performed well are more niche suburbs such as close access to transport and beaches.

    Long term I would also try to purchase a property in a desirable suburb, that has owner occupied appeal such as a character home specific to demographics, but is be worried about paying 2020 prices in 2017 due to the competition for these homes.


    Hope this helps
     
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  9. Whiteman

    Whiteman Well-Known Member

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    Thank you for the update, great to hear from someone on the ground day to day.

    I bought in Sandy Bay in May 2016, so your comments on the inner ring are encouraging.

    Thanks again and look forward to your next update.
     
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  10. C-mac

    C-mac Well-Known Member

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    The interesting thing about even mild uptick's in population growth (e.g. 0.5%) in such a low-starting-base population is that any uplifts are quite noticeable in the broader state's economy.

    E.g. Tasmania has about 519,000 state-wide population as of March 2016's official ABS number. A 0.5% increase is still around 2,600 people net-increase in population. Might not sound like much, but if you imagine the bulk of these arrivals (let's be fair and say around 2,000 of them) are heading to Hobart for work (remembering that Hobart's population is only around 211,000), then a 2,000 increase on a 211,000 population base is nothing to sneeze at!

    Useful read here too (April 2016 numbers though..):

    http://www.themercury.com.au/reales...a/news-story/69107892f3cf9ef95533279e20b703df
     
  11. John Ferguson

    John Ferguson Well-Known Member

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    Sandy Bay is a great suburb. Expensive to get into but will always perform well as it is a highly desirable location with lots of professionals and high income earners conpeteting for properties there. I missed out on a couple of properties in Sandy bay about 2-3 years ago .
     
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  12. radson

    radson Well-Known Member

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    We bought there in July 2016. I think it's up 10% already.
     
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  13. larrylarry

    larrylarry Well-Known Member

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  14. sharon

    sharon Well-Known Member

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  15. See Change

    See Change Timing Lord

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  16. FlossyB

    FlossyB Member

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    Fingers crossed our pre-approval comes through for our first IP. Have been keeping an eye on Tassie properties and the market and we'll travel down there soon to get a feel for different suburbs and check out some open homes. I'm looking more towards Launceston as it more within our budget. I love Hobart but feel it's already going ahead and with Launceston being the next biggest city with plenty on development going on, I'm prepared to take the risk. Call me silly but have convinced hubby to buy there as well. After travelling around Tassie years ago in a campervan, we loved it and my dream was always to own a piece of Tassie. Let's hope that dream comes true.
     
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  17. Whiteman

    Whiteman Well-Known Member

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    http://www.dailytelegraph.com.au/ne...s/news-story/8fa18c23173795ac85d9d08c86f78337

    An article out of the Hobart Mercury "Tasmanian property boom fuels budget surpluses for four years" 12 Feb 2017. Here's hoping the state government uses some of the money on some great infrastructure projects for the state.



    Tasmania’s booming property market will help keep the State Budget in surplus for the next four years, according to new Treasury forecasts.

    A $148 million increase in conveyance duty and land-tax revenue, as well as an increased share of GST, will be revealed when the Revised Estimates Report is released today.

    “The increase in both conveyance duty and land tax are a direct result of more property transactions and increased property values, which is reflective of the stronger and more confident Tasmanian economy,” Treasurer Peter Gutwein said.

    Hobart house prices outperformed every other Australian capital city in the three months to January 31, up 5.8 per cent.

    Tasmania’s GST share will increase by $127 million over the next four years, the figures show.

    Mr Gutwein said the increases, along with spending below revenue growth, would keep the Budget in the black.

    “The Budget is now forecast to be in surplus for at least the next four years, meaning we can continue to afford to pay for essential services like health, education and supporting our most vulnerable,” he said.

    This year’s surplus is forecast to be $47.7 million, down from the $77.3 million predicted in last year’s Budget.

    A deficit was forecast for 2018-19 before a return to surplus a year later.

    The report reveals a $29.5 million bill for last winter’s floods, the largest single spending measure since the Budget was handed down.

    The budgetary position could yet be affected by GST fluctuations and Mr Gutwein warned these could be “highly volatile”.

    “Spending discipline remains critical,” he said.

    “As recent years have demonstrated, forecast GST increases can just as quickly disappear, so it’s essential that we plan carefully and don’t spend today money that may no longer exist tomorrow.”
     
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  18. Dylan33

    Dylan33 Well-Known Member

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  19. sharon

    sharon Well-Known Member

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    It was already under contract when I called. It is beautiful and the type of house I would want to live in.
     
  20. Spoony

    Spoony Well-Known Member

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    Thanks for sharing you on the ground experiences, the certainly correlate to what I've been monitoring from afar.

    Examples like this property 4 odd km's out on the south, nested within very sort after suburbs. Asking $335-365k, it was listed for only a few days and sold for $411
    135 Waterworks Road, Dynnyrne, Tas 7005 - Property Details

    I think there is defiantly potential to manufacture decent CG around the sort after area's of Hobart. This very rough looking place right behind and overlooking Sandy Bay needs lots, but again 4 odd kms out from the CBD, epic views over looking some of the most expensive sort after area's of Hobart, I can't help but think if done right would net well. 179 Nelson Road Mount Nelson Tas 7007 - House for Sale #124661786 - realestate.com.au