TAS Where in Hobart for 350K???

Hi guys,

Looking to buy an investment property in Hobart and have been reading the threads on Hobart to get an idea on suburbs. Market has changed quite a lot and therefore asking the q's below as some info on the forum is most probably out dated by now.

So, what are some good suburbs in Hobart for a budget of 350K?
- prefer a free standing brick house. Will consider a townhouse too...
- 3-4 bed room
- prefer a good balance between rental yield and CG
- the usual ...good transport, close to amenities etc.

Had the below suburbs in mind from reading on this forum, but some may be out of budget now:
Glenorchy, Rosny park, Claremont, Newer parts of Kingston, Blackmans Bay, Oakdowns, Howrah Heights, Lindisfarne, Bellerive.

Thoughts on Chigwell? Reviews on this forum aren't great. But, I believe old Chigwell is quite different form the newer Chigwell. I have heard it is similar to new areas of Moonah, Glenorchy, Berriedale and Claremont (which are much different to the older areas within the same suburb).

As always any inputs will be greatly appreciated...

Cheers

 

I would vote for Rosny Park. There are few properties around your price range .It is the closest suburb to the city, has all amenties including the large shopping mall Eastland. However, there are some pockets with heavy percentage of public housing or very low socio demographic (near Warranne) so choose wisely. Warranne is also not a bad choice if you target long term CG, the demographic is gradually changing there. You can find a big block there with your budget.

 

Not a lot available now for 350 k range maybe a older unrenovated house in Glenorchy or Claremont. I would steer clear of Chigwell as it doesn't seem to get good capital growth and is a lower socioeconomic area with pensioners and unemployed. Median 221k - 2009 to 260 k 2018 not great compared to other suburbs.

 

'At the crossroads': How Australia's island capital became a victim of its own success

 

Depending on the pockets. The side closer to water and Berridale seems to be better.

 

i'd try for rosny, lindisfarne, howrah. i prefer the eastern shore to the rougher areas in the northern suburbs. some parts of mornington and warrane would be in the price range but need to be careful of the street. the 2BR brick villas in bellerive and howrah are great, i have one of these and it has high rental yield and high demand.

avoid chigwell, rokeby, risdonvale - they are cheap for a reason! i also really don't like howrah heights near rokeby - this area is much newer and used to be part of rokeby so has a much lower appeal than the older established areas of howrah closer to the water.

 

+1 for the eastern shore

 

Not a lot left below 350k at the moment. Late 2017 was pretty crazy - we managed to secure a property in geilston bay after getting priced out of Lenah valley and Moonah (should have ask MB about extracting equity from ppor in 2016 ....grrrr). Keep in mind that, once supply catches up they will be a correction in rents (imo).

 

REIT reported a softening in rents in the last week. I would be looking at the current statistics online of suburbs before a decision is made. Late 2017 was very busy.

 

I would assume the softening in rents is due to the timing i.e. winter months are not a popular time for people to move. However I do think rent in Hobart is at a very high level now so not much headroom left. House price also seems to slow down.

 

Would you be so kind as to share the link

 

End in sight to rental dilemma?

 

I'm not sure that winter stops people from moving if a tenancy ends. I suspect that Tasmania is seeing an easing of intrastate migration combined with University providing housing solutions to overseas students. There is also the issue of deceased estates bought and then leased by investors. Too many of those and housing supply increases dramatically. Add in growing unemployment, with lower family benefits, and you will see young families move to other states to get ahead.

 

Even in the article you posted above, they quoted tourism is reducing due to winter is not a good time to travel to Hobart hence more airbnb properties become available now for rent increasing rental stock. And historically, people prefer not to move during winter months. Anyways, I think there is not much headroom for both rent and sale in Hobart. The tide will turn starting next year.

 

In a traditional Tasmanian market with stable low housing prices, that would be true. Last year, rents were booming in winter and have remained high for the last ten years without the seasonal down turn.
Though 2016 sales were slow in house sales and prices should have followed were it not for sentiment turning positive in 2017. There were desperate agents in 2016 who would have done very well in 2017. There's too many retailers shutting shop for me to think that there is underlying economic conditions to support what has been a booming market. I would suggest that a slower market indicates more than AirBnb at play.

 

Tasmania has the highest economic growth(state demand) in the country last quarter at 2.0%

 

I have no doubt that is true. It may even continue to have excellent economic growth as the state and government create jobs via infrastructure. That does not mean that house price growth is sustainable.

 

Thats the thing though, Tassies last quarter was a massive increase in private expenditure not government.

"Private gross fixed capital formation contributed strongly to growth in the quarter, driven by investment in machinery and equipment"

5206.0 - Australian National Accounts: National Income, Expenditure and Product, Mar 2018

 

Hi Hobart Chic
as noted in the article you posted many Airbnb owners put their properties on the market for long term rental over winter as the combination of the slow season for tourism and the tripling of Airbnb operators make this more practical during this time of year. I have done this with my Airbnb and so have friends who have airbnbs. As the article says it will be interesting to see what happens after winter as the tourist season returns.