TAS Time to Hype Hobart Thread?

I should re-phrase my poorly worded question.

Is there a region in Hobart that ticks more than a few of these boxes?

- Good geographical location
- Prices are attractive mainly due to an outdated "stigma"
- Gentrifying
- Has some critical locations of interest (e.g. hospital, big shopping centre, etc)
- Government has shown interest in investing
- Good transport options (buses, trains, etc)

I believe a good example (historically) would be Western Sydney or Logan.

 

I re-posted my question too soon. Thanks for the reply . Time to research these areas.

I don't think Blacktown and Logan are special predominately because of the low socio-economic status but moreso because of the established infrastructure, strategic opportunity and geographical location making them magnets for government investment.

 

Hehe, stop bragging.

 

Data to June 2016:

 

Is that good or bad?

 

I am guessing good. It looks to me like the multiple of medium house prices between SYD and HOB. At present it is indicating the average house in SYD will get you about 2.75 average houses in HOB where as in 09 it was around the 1.7. Indicates a fair bit of room to move.

 

If history repeats/rhymes there may be some more room for Sydney to outperform Hobart short term, but over the medium/long term Hobart has a lot more potential IMO. Although Sydney has internationalised substantially over the past 10 years.. not sure how much of a difference that may make.

 

Lutana, you can cycle to work in the CBD. 3-5mins drive to target/coles/bottle shop. Seconds from a nice park river area.

downside zinc works.

 

I own three IP's in Hobart and sold one recently. I developed two units in order to create instant equity and setup a redraw of $100k to use to purchase further properties. I then sold one of the units and paid down the debt o used to purchase the other two IP's.

The development was in a suburb 20 mins drive from Hobart city and when I developed the two units this suburb was going through major land release stages and sub-division. The suburb has been flooded with new stock and has not seen growth for about 7 years due to low demand.

I have purchased IP on New Town an inner ring suburb of CBD with some beautiful federation homes and strong demand, due to proximity to CBD and access to amenities. Buyer beware as there are a few bad pockets. But good potential for Capital Growth. I bought a property that was below market value and which I could add some value to and increase the yield.

Third IP is in North Hobart. Another inner ring suburb with strong dand for tenants due to the 5 minute walk to CBD and cafes. Also offers the most expensive private school in TAS and holds some amazing properties. North Hobart offers a strong yield with the possibility of Capital Growth but also has the possibility of being a little volatile due to the high rental percentage for the suburb. This property was to balance the portfolio and keep good cash flow due to lower income for a period of adding members to the family.

We bought our PPOR in Mount Stuart, which in my opinion is possibly the nicest suburb in Hobart (might be bias though) and I see Mount Stuart as an area that could deliver some strong growth. I plan to add value to put PPOR and access some equity for future purchases.

As well as owning property I have also accessed some equity to purchase growth shares to add some diversification to my investments. This was done with some thorough research of course.

In terms of suburbs to target. Personally I believe all the demand is for inner ring suburbs offering character homes and streets and properties that have been renovated or spruiced up and styles professionally seem to sitting on the market for less than a few days. Huge demand for these properties in these suburbs.

These suburbs tend to attract more professional with higher incomes and this could possibly continue for a couple of years to come and drive up prices.

Suburbs of choice (Mount Stuart, west Hobart, new town, Lenah valley, sandy bay, south Hobart) would be suburbs I would target. These markets are hot though and a buyer needs to ensure they do not overpay due to the strong competition.

A Fair spiel, but thought it could assist some individual on here.

 

Tasmanian real estate 'robust and active'

A good summary on tassie from the head of the REIT

 

Thank you @John Ferguson. I enjoyed your spiel.

 

Do yuo have any issues with the soil contaimination in Lutana?

http://epa.tas.gov.au/regulation/lutana-and-parts-of-hobart's-eastern-shore-soil-contamination

 

Raised garden beds are recommended. Although the levels are pretty low... should only impact on kids ect.

 

But I am envious of where you live! Beautiful place and hope I didn't come across as a silly nilly!

 

Good post.
Are you actually seeing growth at the moment in inner city?

 

Yes definitely seeing inner ring city growth. Hobart is notorious for slowing over winter, but this winter has seen huge interest and demand. An agent I know listed a house in Mount Stuart last week and sold it within 2 days with over 10 offers.

I know Hobart has seen a 6.5% quarterly growth. But I'm thinking the investment grade properties would have seen about 8% growth for the qrt.

I'm currently doing up the New Town property and I will get it revalued around Novement when I believe the market will see even more demand. Hoping for a good Val.

 

We have raised garden beds at my placetoo.. but that is because of rabbits/wallabies! You can get the lutana soil tested to check.

 

sounds positive
What is driving this market? industry?

 

Yes the inner city is pretty hot at the moment. Stock levels are low and places are being bought quickly. This doesn't seem to have rippled out to the middle and outer ring suburbs yet. I think Hobart is probably at the beginning of the upswing. this view is certainly supported by Propertylogic - article link below

Hobart Property Market Outlook - Propertyology

 

not silly at all. As Legally Blond said we are advised to use raised vege beds although risk levels are low. (we are putting some in this weekend for spring planting). We live right down near the river - it is indeed a beautiful spot. Most area of Lutana have lovely views and its only a few kilometers from the city centre