Buying in Hobart

[aw1]

Hi All

I'm looking to buy a property in Hobart primarily as a (very) long term investment. I don't expect there is going to be huge gains in Hobart anytime in the near future but I figure the rental yields are good and property there is VERY affordable. I would also like to use it occasionally as an alternative to staying in a hotel when visiting Tas on holiday.

Areas I've looked at so far are Claremont and Blackmans Bay. What I'm looking for is - close to Hobart CBD (i.e. a half hour drive or less), water views, walk to beach, and preferably a house with a fair chunk of land (600m2) or more.

I seem to have found properties on realestate.com.au that fit the bill for under $300K! This seems insanely cheap coming from someone who has mainly invested in Darwin.

Few questions:
* Are there any other areas I should look at?
* What is realistic pricing for such a property?
* What are the rental yields like. I am hoping in the 4-5% range.
* What are vacancy rates like? In these areas would you expect long periods without a tenant?

I can imagine myself wanting to live there in 10 or 15 years from now, so if I can buy something that almost looks after itself (good rental yields) after a few years, I can use occasionally on holiday (between tenants) - I would like to buy before it becomes unaffordable like anything else with water views in this country.

Adam

 

[BV]

AW1,

I am also interested to buy something for the same reasons
but why Hobart in particular?

Cheers

 

[caz]

Everything I've been reading does indicate hobart is at the top of the market. Last time I looked it Mid last year it was still going up. The middle of the range is a bit stagnant. <300k is the cheap end especially in Blackmans Bay. 400k would buy you a nice place. Don't expect much.
Claremont and Blackmans Bay are very different suburbs. Claremont is near the river, no beachs. The northern suburbs have more shops, entertainment etc IT is a good rental area with higher rental yields.

Blackmans Bay is more family, the southern area is rapidly expanding including the shops etc.
Have you been down to have a look. They are such different areas it is worth seeing what you prefer.

 

[BV]

Caz,
Thank you
Cheers

 

[jaycee]

M brothr has 2 in Launceston, bought for $195k &rent for $200(+? can't remember).. he seems to think they've gone up around 10% since he bought 5 mths ago

Made me wonder what the potential might be like also

He's 1/2 over the Nullarbor right now, I'll have to pick his brain when he gets back

 

[YIP]

Hi Adam,

Sounds as though you've done some research, and it looks to be leading you in the right direction.

Blackman's bay would be the best of the two for a number of reasons. Firstly, there are plenty of beaches in and around the Blackman's Bay area making it ideal for those looking for a 'sea change' in retirement, or young families not wanting to live in the city.

Secondly, the area is booming. Vacancy rates are low and competition for rental properties high - once you get a place to lease down there you don't want to leave as it's just to hard to find another (speaking from personal experience here!).

Next comes local development - though the area is considered to be somewhat remote, improvements are coming in transportation (increased bus services) and new shopping developments are continuing (such as the new 'Kingston' plaza, which is really more Blackmans Bay in location). Moreover, with the increasing sprawl of Hobart, Blackmans Bay is quickly becoming the latest hot spot, due to it's popular neighbour Kingston.

I've had family buy in Kingston not 6 years ago when it was dirt cheap and considered way too out of the way for your average Tasmanian. Now they're looking at a house that has very nearly doubled it's value, in an area that is well sought after. I'd predict Blackmans Bay would be next on that list.

However, in saying that, I'm not at all qualified to give investment advice! Do your research, and lots of it, but coming from a former local, I'd say you were on target.

Have a read of http://www.yipmag.com.au/news/1977/default.aspx to get some figures.

 

[aw1]

Thank you for all the information.

I'm also now looking at Seven Mile Beach, which I understand is still less than 20 minutes from Hobart. A bit further out from Blackmans Bay but I can probably afford to be closer to the beach proper.

You wouldn't happen to know if services like ADSL and Satellite TV are available that far out would you? Personal opinion here but if the area is fully serviced in terms of telecommunications and is only 20 minutes from Hobart and fairly cheap near the beach it sounds like paradise!

Either way I'm going to go down for a visit later this year and have a look at some properties in Blackmans Bay and Seven Mile Beach.

Adam

 

[BV]

Any other areas of Tassie we should be considering?
Any areas that could benefit from infrastructure projects?
Thanks

 

[YIP]

Thank you for all the information.

I'm also now looking at Seven Mile Beach, which I understand is still less than 20 minutes from Hobart. A bit further out from Blackmans Bay but I can probably afford to be closer to the beach proper.

You wouldn't happen to know if services like ADSL and Satellite TV are available that far out would you? Personal opinion here but if the area is fully serviced in terms of telecommunications and is only 20 minutes from Hobart and fairly cheap near the beach it sounds like paradise!

Either way I'm going to go down for a visit later this year and have a look at some properties in Blackmans Bay and Seven Mile Beach.

Adam

Hi Adam,

You're correct, Seven Mile Beach is about 20 minutes from Hobart, but not quite as nice, and probably not considered as nice by many living in Hobart, as Blackman's Bay is.

Also, there's the whole complex of it being 'across the bridge'. If you can, I'd always choose to favour the Eastern shore - you have very nice beaches, are still close to town, and furthermore, you're close to the mountain.

I'm not certain about ADSL or satelite in Seven Mile Beach - you may be out of luck but definately worth checking out. It has a very laid back beachouse kind of feel so if demand hasn't been there for those services, they may not have got that far yet. Be careful about that in some parts of Blackman's Bay as well; the further south you go, the less access you will have (I'm thinking more Margate for this type of access issue).

There are a few hidden spots that the locals tend to favour - Blackmans Bay, Huonville (for a retreat type property - it's considered 'country' in Tas), Battery Point (city), Sandy Bay, Dynnerne (spelling) and Kingston on the Western shore, with Rosny, Lindesfarne and Howrah probably the 'nicest' on the East, without being too far out. Seven Mile Beach is still considered a long way for Tasmanians

A visit is a good idea, you'll certainly get a feel for the place. And really, it's about which you prefer as well - all the places you are suggesting are quite nice and stable.

 

[YIP]

Any other areas of Tassie we should be considering?
Any areas that could benefit from infrastructure projects?
Thanks

Most certainly. Growth areas for infrastructure would definitely be Blackmans Bay, Huonville, Margate - the population is a little more relaxed so nothing major, but I've noticed a few gormet shops and resturants take off, and people are paying Sydney prices. Basically, most services are centred around the CBD and Rosny Park - those outlying suburbs or nearby certainly benefit from extra services as there is a bit of a sprawl happening.

 

[BV]

YIP

Thanks, Are the suburbs along the channel Hwy or the 36 Hwy more popular?
Looking at the map, you would probably have some great views on the Eastern side, but transport could be easier on the 36.

I was meant to travel down in Xmas but our leave was chopped due to work commitments
so had to postpone it till Easter.

Any areas outside Hobart?

Cheers

 

[investwest]

Have a Look at Chigwell and Berriedale

Hi All

I'm looking to buy a property in Hobart primarily as a (very) long term investment. I don't expect there is going to be huge gains in Hobart anytime in the near future but I figure the rental yields are good and property there is VERY affordable. I would also like to use it occasionally as an alternative to staying in a hotel when visiting Tas on holiday.

Areas I've looked at so far are Claremont and Blackmans Bay. What I'm looking for is - close to Hobart CBD (i.e. a half hour drive or less), water views, walk to beach, and preferably a house with a fair chunk of land (600m2) or more.

I seem to have found properties on realestate.com.au that fit the bill for under $300K! This seems insanely cheap coming from someone who has mainly invested in Darwin.

Few questions:
* Are there any other areas I should look at?
* What is realistic pricing for such a property?
* What are the rental yields like. I am hoping in the 4-5% range.
* What are vacancy rates like? In these areas would you expect long periods without a tenant?

I can imagine myself wanting to live there in 10 or 15 years from now, so if I can buy something that almost looks after itself (good rental yields) after a few years, I can use occasionally on holiday (between tenants) - I would like to buy before it becomes unaffordable like anything else with water views in this country.

Adam

Hi, Chigwell is on the move, mainly housing commision but some have fantastic views of the river and close to Hobart. The rental yields are good and the capital gains fantastic.

 

[beachgurl]

Sandy Bay is close to the university so if the right house is available, there may be the opportunity for high yields in charging a "rent per room" arrangment. As Sandy Bay is one of the more expensive areas near the uni, you would be targeting the higher-end uni student. UTAS has a few courses that are well-renowned, with many student enrolments from the mainland, eg, the marine biology course is one of the best in the country, so there would be high demand for good quality accommodation in a good part of town.