TAS Time to Hype Hobart Thread?

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

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  1. Whiteman

    Whiteman Well-Known Member

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    A new tourism project with the backing of the state government, still many years away but a great project for Hobart to bring more tourists in.




    Law changes to breathe new life into kunanyi/Mt Wellington cable car proposal

    PATRICK BILLINGS and SIMEON THOMAS-WILSON, Sunday Tasmanian
    February 25, 2017 6:01pm
    Subscriber only


    MOUNT Wellington cable car proponent Adrian Bold plans to lodge a development application by the end of the year after the State Government yesterday breathed life back into the project.

    The entrepreneur moved last night to reassure Tasmanians sceptical of the proposal that he did have the financial backing to get the $54 million project off the ground.

    “It’s not going to be the white elephant that people think that it’s going to be,” Mr Bold said.

    “We have had various capital raises to date and we’ve been oversubscribed, which is a good thing.”

    Yesterday, State Growth Minister Matthew Groom described the cable car as a “tourism experience people wanted in Tasmania”.

    He said the State Government would acquire land, and enact new land ownership laws in Parliament, to help clear the way for a cable car development application.

    Mr Groom said to allow the proposal to progress, the State Government would acquire part of kunanyi/Mount Wellington. He said the proponent would still need all relevant environmental, heritage and Aboriginal approvals, but new laws would solve the current stumbling block of landowner consent.

    “We’ve been talking about a cable car for over 100 years and we’ve got a current proposal that’s stuck with the Hobart City Council,” Mr Groom said

    “After careful consideration, the Government has decided to prepare new laws to acquire the public land on kunanyi/Mt Wellington necessary for the project to proceed.

    “It’s got to go through the normal planning process but it is important that the Government steps in to ensure it can do that.”

    Mr Bold had required permission from the Hobart City Council to use the land on Mt Wellington, which it owns.

    This permission hasn’t been forthcoming but if the Government’s proposed legislation passes Parliament, it won’t be necessary.

    Mr Groom said it would address the issues of land tenure and landowner consent on major projects.

    “The Government will retain control and ownership of the land, the new laws will simply allow a cable car proponent to obtain the consent necessary to have the project proceed through the planning process,” Mr Groom said.

    “I want to be clear, the Government will not be providing any financial contribution to the project and the Mt Wellington Cableway Company will need to secure its own finance for the proposal and enter into agreements with any private landowners as required.

    “There will also be opportunities for the public to have their say if, and when, the proponent submits a proposal for planning approval.”

    The Government’s intervention comes after state co-ordinator-general John Perry recommended that the project was a viable business proposition.

    But Mr Perry has not recognised the cable car project as a project of state significance.

    The State Government identified that one of the obstacles to the project moving forward was the issue of landowner consent, so it stepped in to enable the proponent a clear pathway to lodge a development application.

    Mr Bold said the State Government’s step was significant and that once the legislation got through Parliament, he would lodge a development application shortly after.

    “Once it goes through Parliament and we’ve signed the lease we will be submitting a DA, hopefully some time this year,” he said.

    The cableway company said it would create close to 280 jobs during construction and operation and would boost the Tasmanian economy by $89 million a year. The project also has plans for an all-day cafe, and a wine and whisky bar.

    The Mt Wellington Cableway Company has been spruiking the $54 million project since 2010.

    Tourism Industry Council of Tasmania chief Luke Martin said the idea deserved the chance to be successful.

    “For me, I think it’s a very sensible way to give the project the best chance of happening,” he said.

    The Government will release the draft laws for public comment shortly.
     
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  2. Pier1

    Pier1 Well-Known Member

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    This debacle is a fair summation of Tasmania.
    Woulda, coulda, shoulda.
    Has been spoken about to death, should have been built decades ago, but no the tree hugging nimby's are affronted that it should be even mentioned.......
    But we will however allow the monstrosity that is a mobile tower to be built though.
    Mind you I for one have taken advantage of the Tasmanian no can do attitude to enjoy wonderful holidays down there in peace for the past decade
     
  3. Whiteman

    Whiteman Well-Known Member

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  4. Vultures

    Vultures Well-Known Member

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    Aother boom article:

    http://www.realestate.com.au/news/home-owning-dream-turns-into-a-nightmare-as-listing-numbers-slump

    I haven't kept an eye on the market much as I'm not buying but I do have 3 properties in Hobart's northern suburbs and caught up with an agent I know well as we're going to list them for sale. He's extremely busy, says prices have definitely moved in Moonah, Glenorchy and even some of the less desirable suburbs surrounding it. His opinion is that growth will continue this year.

    To give you an idea, our properties are:
    Claremont - bought 2014 $160k, ($10k reno, revalued at $200k) current value $250k
    Chigwell - bought 2014 $138k ($25k reno, revalued at $220k) currently on the market $220k
    Austins Ferry - bought 2014 $218k, haven't touched it, current value $300k.

    Yes, this is peanuts compared to Sydney, but this is what we had to work with at the time.

    The Chigwell one is the only one which hasn't really moved (yet?), but we've made our gains on that one and it suits our circumstances to let that one go first... even though it has good yield and a great tenant... and heaps of depreciation!

    Would I buy in those suburbs again? Probably not. Once it peaks, there will be virtually no capital growth prospects and the risk of bad tenants in Chigwell/Claremont outweighs the higher yields.


    As I've mentioned, I've been out of the market for a little while so I haven't been watching it or much of the fundamentals impacting it but I'll venture a guess at your question. 30% of employment in Tassie is in the public sector and a lot of the mums I talk to after school who work in government have been saying how in the last year or two there have been quite significant staffing and funding cuts to their departments. So while the story might be good for tourism and agriculture with the lower AUD, it hasn't been the same for government employees. Maybe that's part of the reason for the employment results?

    ^ YES. It seems young people might leave for the mainland for a while but many do come back, especially when ready to have families of their own. I attend some business start up meetings and almost everyone I meet through those is either a mainlander or someone who returned here after a stint on the mainland. And totally anecdotal, I know, but my brother (early 30s) decided he's priced out of Sydney and wants to move here too.
     
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  5. John Ferguson

    John Ferguson Well-Known Member

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    Sport for late reply. I have been away on holiday.

    Looks like the property dynneryne is not online anymore and the property in mount nelson sold for $397k. That property definitely needed a bit of work to get it up to standard to attract good reliable tenants and increase the rental demand. But definitely had potential. Mount nelson is a bit of a tricky spot. It gets absolutely freezing up there over the winter, the two routes to get there get very wet and slippery in winter and are a definite strain on the vehicle. So that can eliminate a lot of potential high quality renters. I loved in Mount Nelson for over a year and can say I wouldn't live there again.

    I think the vicinity looks attractive but personally I wouldn't put it in the investment grade suburbs of hobart.

    Dynneryne on the other hand is much more attractive in my view, but beware there are a couple of pockets to steer clear off.

    Most the inner ring suburbs are still in high demand and there is a massive under supply. All properties hitting the market are receiving multiple offers and properties that have been cosmetically upgraded are achieving well above asking prices.

    A very hot market and I believe owner occupiers are pushing up the prices as they are willing to put in excessive offers to ensure they get the property they want.

    Still some good buys around but very competitive.
     
  6. John Ferguson

    John Ferguson Well-Known Member

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    It's under offer. Lovely home. I'd say the offer would be around $525k
     
  7. Whiteman

    Whiteman Well-Known Member

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    Article from the Hobart Mercury

    Investors rush to buy a slice of the Tasmanian property market

    April 8, 2017 11:30pm
    ANNE MATHER
    [​IMG]
    Investors are rushing to buy into Hobart’s property market. Picture: MATT THOMPSON.

    INVESTORS are increasing their push into the Tasmanian property market, with rates of investment in Hobart at a record high.

    Almost a quarter of all properties sold across Hobart so far this year have been to investors – the highest rate in a decade.

    Across Tasmania about one in every five property deals are closed for investment purposes, according to new figures from the Real Estate Institute of Tasmania.

    REIT president Tony Collidge said the percentage of sales to owner-occupiers was decreasing, and was likely to decrease further as more investors came into the market.

    “The rate of investment will continue to grow,” he said.

    For the first two months of this year, 24 per cent of the 624 property sales in Hobart were to investors. Last year 20 per cent of Hobart property sales were to investors.

    The rate of investment in property across Tasmania this year is at 21 per cent, compared with 19 per cent for all of last year.

    REIT data shows that across the state in 2016 investors bought 1870 properties at a median price of $235,000. Two-thirds of those investors were Tasmanians.

    Mr Collidge said the rate of investment in Tasmania was still relatively low compared with other capitals, with 68 per cent of Sydney’s property owned by investors.

    He said some of the Tasmanians getting into the investment market were young people who simply did not want to live in the home they owned, but preferred to enjoy the flexibility of moving between rental properties for work and lifestyle reasons.

    “Young people don’t always want to be tied down to the place they own,” he said.

    Celebrity home renovator Cherie Barber, who was in Hobart yesterday delivering a workshop on renovating investment properties, said Tasmania could expect to see more investors moving in because mainland buyers were looking for affordable opportunities.

    “I am thinking about coming back to Tasmania next weekend to go house hunting myself,” said Ms Barber, who was on her first visit to the state.

    She said the large mainland capitals were no longer affordable for many people, so Tasmanian property looked attractive to either investors or people seeking a lifestyle change.

    From an investment perspective, she said the Hobart homes were in the “perfect price bracket” for making a profit following her cosmetic renovation guidelines.

    Mr Collidge said the interest in Hobart property was pushing prices up because demand for either renting or purchasing a home could not meet supply.

    A report released last month showed rental demand is higher in Tasmania than almost anywhere in Australia.

    The REA Group’s March Property Demand Index shows demand for Tasmanian rental properties is up by more than 40 per compared with the year before – a growth only eclipsed by the ACT at 52.5 per cent.

    Hobart’s home values outperformed other capital cities in the past quarter, according to CoreLogic RP Data’s monthly Home Values Index.

    The index shows dwelling values for both houses and units were up 5.6 per cent for the three months ending March 31, ahead of Canberra at 5.1 per cent and Sydney at 5 per cent.
     
  8. See Change

    See Change Well-Known Member

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    We've just bought one more in Hobart .

    Decided on one more on for super and on reviewing options Hobart seemed closest to a full blown take off .

    Around two weeks ago we selected around 20 properties for further investigation . When swmbo rang up the next day most were already under contract . By the time she got down there last Monday there were really only two options and we ended up picking up one of those . Other had a weird block so in normal situations we wouldn't have considered it .

    The one we went for had been on the market for a while , but overpriced but in the last 1-2 months the market had started moving up and their expectations had started dropping to a point where they met .

    Price around 270 , rental estimation 340 .

    Cliff
     
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  9. John Ferguson

    John Ferguson Well-Known Member

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    I was close. Sold for $530k
     
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  10. radson

    radson Well-Known Member

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  11. John Ferguson

    John Ferguson Well-Known Member

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    It baffles me when I hear people say they would never invest in Hobart and to stay away from the market. I bought a a property in North Hobart 14 months ago for $435k. It has a 5.5% yield and has had 15% growth in 12 months. I think Hobart can offer excellent opportunities for the savvy investor who knows the market well. The properties I hold have historically grown at 7.5% per annum with a 5-6% yield, meaning if I hold them for 14 years they will double in value and with some depreciation and small cosmetic work, I can improve the yield to about 6.5%. Low holding costs and low risks to double my wealth in 14 years.

    North Hobart
    IMG_1209.jpg
     
  12. legallyblonde

    legallyblonde Well-Known Member

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    Great looking numbers! Congratulations!
     
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  13. radson

    radson Well-Known Member

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  14. jins13

    jins13 Well-Known Member

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    Just a question in relation to the argument of buying a house in Launceston vs unit near Hobart. I quite like the idea of being closer to Hobart rather than being over 2 hours drive from Hobart as there are quite a few Government departments and major employers closer to the area.
     
  15. Chris Au

    Chris Au Well-Known Member

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  16. Chris Au

    Chris Au Well-Known Member

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  17. John Ferguson

    John Ferguson Well-Known Member

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    All these suburbs are close to Hobart. So I'd go for a low density 70's or 80's unit around Hobart rather than a house in Launceston


    IMG_1314.jpg
     
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  18. Gockie

    Gockie Life is good ☺️ Premium Member

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    Holy smokes
     
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  19. Chris Au

    Chris Au Well-Known Member

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    Yes! Has corelogic grouped units and houses into the one stat there? Have to have a look what the average unit and house price is in those suburbs. Looking at the names, not too shabby I dare say. The yields might be a bit lower then.
     
  20. Whiteman

    Whiteman Well-Known Member

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    Hobart’s piping-hot home value growth eclipsed by only Sydney and Melbourne
    JARRAD BEVAN, Mercury
    May 1, 2017 9:36pm
    Subscriber only
    HOBART’S skyrocketing home values have reached a milestone with price growth now behind only Melbourne and Sydney over the past 12 months.

    CoreLogic PR Data’s April Home Value Indexrevealed 13.6 per cent growth in Hobart over this period, behind 15.3 per cent in Melbourne and 16 per cent in Sydney.

    Hobart was the best performing capital city over the three months to April 30, with 5.1 per cent growth.

    It also posted the highest rental yields for units at 5.4 per cent and shared the top spot for house yields with Darwin at 4.9 per cent.

    RP Data head of research Cameron Kusher said Hobart’s prices, which are cheaper than any other capital city, were having a big impact and attracting investors. He said Hobart was seeing growth as more Melbourne buyers turned to Tasmania for potential retirement homes or investment properties.

    “They may be looking at the high prices in Victoria and realising how much further their money can go in Hobart,” he said.

    MORE: NORTH JOINS PROPERTY PARTY

    Knight Frank prestige property specialist Pam Corkhill said she had not seen a market like Hobart’s current one in more than 20 years of working in real estate; not even in the boom of 2003.

    “In the last boom we did not have the level of interest from overseas buyers that we have now and we did not have the huge numbers of people at open homes, either,” she said.

    “It’s a fantastic market and a really good thing for our state to see such positive movement.”

    [​IMG]
    Owners, Garry and Cindy Hart outside their Dodges Farry home. Picture: ROGER LOVELL
    Petrusma Property director Jake Towns said with a shortage of good-quality properties listed for sale and Hobart’s strong buyer demand, there was “no end in sight” for continued growth this year.

    “These results are reflective of what we are experiencing on the ground in the local market place,” he said.

    MORE: SANDY BAY’S $5.6 MILLION HOME

    Harcourts Hobart property consultant Colin Miller said the Hobart market would continue to post strong results beyond winter.

    “Aside from low interest rates, business confidence metrics and supply and demand, the fact that our employment and population is growing will underpin this market buoyancy,” he said.

    “Optimism in Hobart is the highest I’ve seen in my lifetime,” he said.

    Homeowners Cindy and Garry Hart recently put their 2ha three-bedroom modern family home at Dodges Ferry on the market.

    The couple have built and sold eight houses over the years and are excited to pass their home onto its next owner.

    “We have lived in this area for decades, it offers a fantastic lifestyle,” Mrs Hart said.

    “There has been good interest in the house and we are expecting offers soon.”

    RP Data figures for the week ending April 30 showed 1587 Hobart properties on the market, a 27.5 per cent decrease compared to 12 months ago.

    Last week the Real Estate Institute of Tasmania’s quarterly report confirmed the first three months of this year had strengthened with the highest number of sales recorded in a quarter since 2004. The total value of those sales was $955 million.
     
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