TAS Where to buy with 6% + yield

Nah I haven't done a schedule since the new regulations. I will be soon though since my next one settles next week. I will let you know if there are huge differences in claim amounts.

 

I'd be looking at Adelaide metro over Tasmania - Tassies long term economic issues are more of a concern for me than Adelaide's transitional issues. More importantly the population peak estimates with Tasmania currently have it looking to be the only State or territory which is meant to decline as per ABS stats. A weak economy, low population to limit internal growth of the economy and population and potential decreases in the future doesn't make for what I would be looking for in a fundamentally strong investment.

Tassie's certainly going through some short term growth after flatlining for years - but we need to see the fundamentals improving if you're a new investor looking to build a portfolio which is meant to see you through 30+ years.

If Adelaide I'd be looking at Salisbury or Onkaparinga council areas for neutral/positive purchases with value add potential.

 

Thanks Corey,
could you please point me to the population abs decrease for Tassy?

I also thought that Tassy's economy is going well. Yes true it's smaller cf Adelaide and is going thru a growth spurt now.

the small population could mean that a small change leads to an increase?

i look at the SQM stats and it is in growth, with low vacancies (Hobart north suburbs and Launestion) in contrast to say salisbury?

Happy to be directed to more issues with Tassy if there are articles.

Also the growth is pretty significant. ie doubled or even trippled (depending when youbought in cycle)

 

Tasmania and S.A are both on 0.6% growth rate.

 

Check the growth projections out to 2050 - not year on year.

As per seal:

http://www.stategrowth.tas.gov.au/_...h_Strategy_Growing_Tas_Population_for_web.pdf

This doc speaks a bit about the population peak issue which the State government is now trying to resolve (read page 9 onwards) - but I'm hesitate to think they're going to have a lot of success in easily turning this demographic hurdle.

There's historical population stats and then there is forward projections - be careful to not base investment decisions on previous stats and not what is slated for the future.

 

Thanks Corey. Yep doesn't look quick growth. Being drawn to Adelaide initially b/c it's bigger yet it's economy has had some negative press, and it looks like it plods along (again i won't have the insights you may being there and having the head in the game there more).

 

Yes but stats are facts and projections are guesses.

Thats why we have almost 4 million people in Australia than originally estimated in 1999. Also why WA's, NSW and VIS population projections have had to change so much recently.

 

If its not too much trouble, do you mind naming the top 2-3 ticket items that are contributing to that amount of depreciation. I'm finding it hard that my property has such high depreciation value as compared to many others thanks