Gagebrook

[NBS]

I was having my usual look at real estate .com and a place came up which I am looking at. Initial figures Gross 13.8% Net 9.62% return.

Now looking a bit more into Gagebrook and surrounding areas it is not what one would call an exciting place.

Basically 93% are homes with 40 % rented and is about 21klm out of Hobart.

Wages 400 - 599 31% - 600 - 799 23%

From posts I have looked at people say buy in closer to say Hobart etc as like 21k is a planned event in Tassie.

Capital Growth is not a strong point I dare say and if I keep looking I will find the same return closer to home.

What are peoples thoughts on Gagebrook? RUN is a response

Brian

 

[Tyrael]

There is a high volume of residents on welfare payments and high unemployment rate in the area so be prepared for a tenant that will spend their Centrelink payment on Bundy and coke rather than pay the rent, Gagebrook has a high crime rate including property vandalism and arson (I can recall about a dozen occurences in the last couple of months at least).

Gagebrook is very slowly becoming gentrified but has a long way to go in my book. The majority of of residences are typically Gov't or ex-gov't housing estates although there are several pockets of new development in the area.

Definitley do some research and due diligence and don't just work of the return would be my recommendation.

 

[Angel]

I was very excited about researching a small 3 bedroom house on the esplanade at Gagebrook about five years ago. Extensive water views Mate. It was listed about $160K. Have they increased in price since then? My friends who live in Hobart rolled off their chairs laughing at me. I chickened out. Last year when we were in Hobart Gagebrook and Bridgewater still had miles of waterfront properties.

 

[webb]

Been reading this site for years, when I read this post I decided it was time for me to register and post.

Gagebrook will be a gamble, the above posters are correct. But it could be the best investment you ever make?

 

[NBS]

Angel - Have not looked at the price over 5 years will check it out. I'd suspect it has not gone up much at all.

Tyrael - I went and had a look at arson in Gagebrook and YEP they do like big BBQs (property).

Webb - Yes it is a gamble as with most places I look at however I do try and go in with my eyes open. If I take the step I cannot say I was not warned or prepared. I see others purchase in less favourable areas and seem to do ok albeit most likely living nearby to keep an eye on things. Can you comment on why you said - It could be the best investment you make?

There are other issues to consider - how much will insurance be, will lenders lend in the area. As for centerlink I'd want it set up that it comes out of their cheque prior to them getting it.

I was just looking for comments good and bad so I get a broarder point of view as part of my DD.

My brother will be looking at the place in the next day or so and we will discuss what he sees in the area.


Brian

 

[R377]

You could consider Clarendon Vale and Rokeby which is a slightly better area than Gagebrook. Yes the area is a little rough but good yields and good 10yr growth history.
Low vacancy rates, I've had the same tenant for the past 4 years without a problem