TAS Time to Hype Hobart Thread?

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

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  1. radson

    radson Well-Known Member

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    Im hoping that hobart is a more defensive part of our overall portfolio. It hasn't reached the dizzying house price/median income that other cities have and has a different economoy tan much of the rest of the country. The super low vacancy rates and yields certainly help. Downside is of course that population and wage growth will always probably just creep upwards.
     
  2. C-mac

    C-mac Well-Known Member

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    Thanks for the insight albanga. Personally I am in two minds when it comes to Steve McKnight. That said, one cannot deny the success he has built for himself for the strategies he has enlisted.
     
  3. albanga

    albanga Well-Known Member

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    Heya @C-mac, keen to hear the negatives you have with Steve?
    I think he has continually proven himself ahead of the game whilst always keeping his integrity, which is more than I can say for majority of property experts or should I say spruikers.

    Sure he sells a course and allows others to share a stage with him but that's selling training and I don't have a problem with that. I have a problem with people selling developments and getting $$$ kickbacks.

    But alas this thread is about Hobart and you did some cracking research. As I said in my second post I think Tassie needs to think outside the square a bit and welcome with open arms all the major tech companies like Google, Amazon, Microsodt.etc and create world class data centers. I strongly believe this could put Tassie on the map and set the state up for the future as there is only going to be more and more demand.
    That said it doesn't help this discussion and my only concern with Tassie and ofcourse Hobart is without major industry drivers, will prices ever sky?
     
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  4. Dylan33

    Dylan33 Well-Known Member

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    It's actually snowing in Glenorchy right now! Brrrr!
     
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  5. C-mac

    C-mac Well-Known Member

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    @albanga no, i don't have any firm criticisms about him, I guess I have developed some different strategies to him so I have found it harder to 'relate' to his strategies. One cannot deny his portfolio success and diversification strategies though!

    I agree re: the need for Tas to diversify their economy further. Arguably however, the same can be said for every mainland state too (except for NSW and VIC). Maybe the university expansion will increase local and international student bases (and maybe a few of the graduates will stick around after they finish their degrees and work locally).

    Also it looks like forestry could be back up again after years of being a dirty word. Seems money talks. Sad for the environment (especially after the destruction of the national park in the summer fires), but good for the economy I guess.
     
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  6. datto

    datto Well-Known Member

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    I think those comments about Tassie becoming a call centre capital are spot on.

    With two headed operators at each desk, they'll be able to smash through the calls lol.
     
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  7. C-mac

    C-mac Well-Known Member

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    Ha! @datto Maybe Ancestry.com could move their global office HQ to Hobart? They could hire hundreds of staff and truly make it a "family" business?
     
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  8. radson

    radson Well-Known Member

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    We are now officially Hobart Landlords :)
     
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  9. legallyblonde

    legallyblonde Well-Known Member

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    What suburb? Did you have many quality applicants?
     
  10. radson

    radson Well-Known Member

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    Sandy Bay and tenants were in-situ at purchase :)
     
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  11. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I think the time to hype Hobart was 18 months ago. There's probably still growth to be had, but it's already increased in value substantially.

    A real problem with Hobart is that it tends to have strong growth for a period of time, sometimes massive growth in a short period. Then it goes to sleep for years, waiting for rental yields to catch up. If you can time Hobart well, you'd do well, otherwise you might be left with a property going nowhere for years.

    Based on the last few cycles, the best time to be buying into Hobart is when everyone is starting to talk about Brisbane (because Melbourne and Sydney are already too expensive).
     
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  12. Whiteman

    Whiteman Well-Known Member

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    Last edited: 21st Jul, 2016
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  13. hash_investor

    hash_investor Well-Known Member

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    Hobart has one of the lowest vacancy rates :)
     
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  14. C-mac

    C-mac Well-Known Member

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    I I researched and produced a more structured write-up of my initial post on this thread which you can read here if you like.

    The NDIS news is a win for Tasmania.

    If you think about the fact that ~600 of those jobs will go to Hobart specifically; it might not seem big to us mainlanders; but this is a big win for a city the size of Hobart.

    I say this because, according to 2011 ABS data, about 75% of Hobart's 206,000 inhabitants (so, about 155,000) are 'working age' (15-64). There are numerous sources quoting the participation-rate for Hobart's population, but though this official Tas Gov doc sites labour participation rate trending downwards at a 'state' level (remember: this is not just Hobart, but accounts for the economically depressed west and north-west of Tas...); the Hobart participation-rate in the labour force is actually trending up.

    As I stated in my original post; regional/rural Tasmanians appear to be flocking to Hobart in search of the work that seems to be available there, so this participation-rate data seems to align with that story, somewhat.

    In fact, at an 81% historical average participation rate, that equates to roughly 124,000 working Hobartians (give or take). 600 new jobs is kinda a big deal when we are talking about a working population of this size.

    I'm not blowing this into something it isn't; instead just highlighting that employment trend improvements in the hundreds, in a working population the size of Hobart's, are not insignificant.
     
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  15. Azazel

    Azazel Well-Known Member

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    A comprehensive round up, cheers.
     
  16. Whiteman

    Whiteman Well-Known Member

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    Category: | The Mercury

    and Hobart goes BOOM .... Median is up $10k apparently, clearly not a Sydney style boom then.
     
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  17. Azazel

    Azazel Well-Known Member

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    $10k in Sydney is chump change.
    What sort of percentage?
     
  18. Chabs

    Chabs Well-Known Member

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    Great read, time to enjoy the hype!!

    Are there any suburbs/regions in hobart that are roughly equivalent to Blacktown as a suburb of Sydney or Logan as a suburb between Brisbane/GC (gentrification progress, super high performer, significant facilities such as hospitals and train stations, huge re-development potential, infrastructure advantage, etc).?
     
  19. Gockie

    Gockie Life is good ☺️ Premium Member

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    Yeah... that's like 2 weeks capital growth for Sydney.
     
  20. C-mac

    C-mac Well-Known Member

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    Hobart has very low socio-eco suburbs, yes, but unlike Sydney, there is far less likelihood of any capital growth in these areas. They probably aren't worth the risk of more difficult/delinquent tenants, in pursuit of what will likely be non-existant capital growth.

    Suburbs that are more middle-ground that might present more opportunity (but still offer a low-ish price point) might include Glenorchy, Bellerive, Montrose.
     
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