What are the areas in and around Hobart considered to be undesirable?
Bridgewater & Gagebrook
Definitely picking up in the inner suburbs. I recently bought in Sandy Bay and the agent tells me this is the busiest he's been in years.
Outer suburbs still slow but a couple of agents mentioned enquiries are picking up, mainland interest too, but they don't think much will happen for another 12 months at least.
Outer suburbs still slow but a couple of agents mentioned enquiries are picking up, mainland interest too, but they don't think much will happen for another 12 months at least.
I own a house in Clarendon Vale. In six years I have had the same tenant without any problems. She has painted inside and done the garden up aswell. I get $240 rent and the house is prob worth $160-180k. As I have found in quite a few places across australia government/trust/commission houses are built to last. In six years Ive had to pay out only once for maintenance issues.
I will be looking to buy again Clarendon Vale / Rokeby in the future....
Why not ask a good BA like Rob Zubin? http://www.mypropertyhunter.com.au/index.html
He also has a PM dept so I'm sure the PMs will be able to enlighten you if you're worried about good/bad areas. Can't say much about Hobart personally except that it's a really gorgeous place but COLD IN WINTER!!!
Hobart has come of age in many ways during the last few years, particularly with the advent of MONA. It's culinary advantage is constantly being celebrated and the tourism industry is booming. Now, with the change of state govt, we are apt to see some economic stimulation as the business community breathes a sigh of relief; 16 years of an inadequate Labor leadership has left its toll, for sure.
I have found there to be interesting property investment opportunities in inner Hobart, particularly with older period homes. There is lots of room for negotiation for serious buyers and the rental yields are pretty good as well. Suburbs such as West Hobart, North Hobart, New Town provide excellent opportunities, in my opinion.
I have found there to be interesting property investment opportunities in inner Hobart, particularly with older period homes. There is lots of room for negotiation for serious buyers and the rental yields are pretty good as well. Suburbs such as West Hobart, North Hobart, New Town provide excellent opportunities, in my opinion.
Jumping on this thread after almost 12 months with no further comments, so I thought I'd share some on the ground insights post spending 3 weeks over Christmas camping and touring the entire state.
Firstly, have to say what a jaw-droppingly beautiful state we have, that is certainly picking up in tourism all over the state. The foodie culture is developing so fast and it is wonderful. You can barely drive more than 40km along any of the states highways without seeing either a berry farm, winery, cheese factory/shop, restaurant, etc. And, this is a good thing for the economy, both in terms of attracting tourism revenues, and creating jobs for locals.
Oh, and re: the increase of LGBT communities, I couldn't agree more that this is occurring both in Hobart and Launceston. Spoke to a few gay and lesbian locals , some 20-30 years older than myself, and definitely gay-grey-nomads is a 'thing' now in Tas. Lots of them retiring there too. General feedback is they appreciate the food and art cultures emerging in Hobart mostly.
Also, and I think it is not racist to at least observe "white flight" in action and report on it (if you don't know what white flight is, Google it, it is a trend occurring in many western countries, mostly the UK). Not saying that the act of white flight isn't inherently racist BUT as an investor if there's opportunity to drive revenue from these types of tenants as they move around, then why not? White flighters could become a new larger tenant base.
I don't have any IP's yet in Tas, but post-trip, I at least made this list of places for further investigation or dismissal. Note I haven't outlined any particular buying strategy or anything, but just more broad 'would I touch it or not' kind of views.
Would touch it:
- Launceston (pockets of, non-floodplain, more CF-chasing to balance a CG heavy/CF negative heavy portfolio)
- Hobart (units in west and north Hobart as Sandy/Battery are mostly maximised already; outer suburbs selectively)
- Sorrell (maybe, technically it isn't part of Hobart)
- North-East tourism centers (maybe. Super high risk)
Not in a million years:
- Burnie
- Stanley
- Strahan
- Devonport
I guess my burning question is this, though: the Somersoft community mostly only thinks Hobart when they think Tassie (and, perhaps, rightly so..), and poo-poo Launceston. I see so much IP opportunity in Launceston however. The double-edged sword of course, of a weak Launceston economy in comparison to Hobart is a concern. BUT if tourism increases at the rate it is (both local interstate holidaymakers, and to be honest, specifically the Chinese tourist community who were there in droves when I was there recently, and in not only the bigger cities - but the regionals too), maybe Launceston could bounce back a bit? Launceston is in the heart of a big food bowl, and arrivals from the Spirit of Tasmania will most certainly drove through here on their way to Hobart, and fly-in tourists to Hobart will drive their hire car up to check out Launceston on their holidays, guaranteeing Launceston almost as much likely foot traffic of tourists to Hobart.
I know Hobart has the more diverse economy, but what are peoples thoughts on Launceston? Not a single crane or sign of development which was a concern there. Hobart conversely had 3 biggish cranes building new CBD structures (not sure what, but had to be at least 4-6 story buildings judging by the crane sizes).
I'm not trying to hype Tas at all (and I know that better buying ops exist in most states - I'm actually buying in QLD right now, but thinking of Tas thereafter); but as someone who's moved my portfolio into a place where I could afford to take a small risk on a CF+ property, maybe Tas should get back on the radar more (for both me and the IP community in general) .
I mentioned the white flight-ers and retiring LGBT peeps too. Outside of tourism, could fleeing baby boomers (who are comparatively cashed up compared to local Tasmanians) from other states become another growth driver ?
Thoughts please!
Firstly, have to say what a jaw-droppingly beautiful state we have, that is certainly picking up in tourism all over the state. The foodie culture is developing so fast and it is wonderful. You can barely drive more than 40km along any of the states highways without seeing either a berry farm, winery, cheese factory/shop, restaurant, etc. And, this is a good thing for the economy, both in terms of attracting tourism revenues, and creating jobs for locals.
Oh, and re: the increase of LGBT communities, I couldn't agree more that this is occurring both in Hobart and Launceston. Spoke to a few gay and lesbian locals , some 20-30 years older than myself, and definitely gay-grey-nomads is a 'thing' now in Tas. Lots of them retiring there too. General feedback is they appreciate the food and art cultures emerging in Hobart mostly.
Also, and I think it is not racist to at least observe "white flight" in action and report on it (if you don't know what white flight is, Google it, it is a trend occurring in many western countries, mostly the UK). Not saying that the act of white flight isn't inherently racist BUT as an investor if there's opportunity to drive revenue from these types of tenants as they move around, then why not? White flighters could become a new larger tenant base.
I don't have any IP's yet in Tas, but post-trip, I at least made this list of places for further investigation or dismissal. Note I haven't outlined any particular buying strategy or anything, but just more broad 'would I touch it or not' kind of views.
Would touch it:
- Launceston (pockets of, non-floodplain, more CF-chasing to balance a CG heavy/CF negative heavy portfolio)
- Hobart (units in west and north Hobart as Sandy/Battery are mostly maximised already; outer suburbs selectively)
- Sorrell (maybe, technically it isn't part of Hobart)
- North-East tourism centers (maybe. Super high risk)
Not in a million years:
- Burnie
- Stanley
- Strahan
- Devonport
I guess my burning question is this, though: the Somersoft community mostly only thinks Hobart when they think Tassie (and, perhaps, rightly so..), and poo-poo Launceston. I see so much IP opportunity in Launceston however. The double-edged sword of course, of a weak Launceston economy in comparison to Hobart is a concern. BUT if tourism increases at the rate it is (both local interstate holidaymakers, and to be honest, specifically the Chinese tourist community who were there in droves when I was there recently, and in not only the bigger cities - but the regionals too), maybe Launceston could bounce back a bit? Launceston is in the heart of a big food bowl, and arrivals from the Spirit of Tasmania will most certainly drove through here on their way to Hobart, and fly-in tourists to Hobart will drive their hire car up to check out Launceston on their holidays, guaranteeing Launceston almost as much likely foot traffic of tourists to Hobart.
I know Hobart has the more diverse economy, but what are peoples thoughts on Launceston? Not a single crane or sign of development which was a concern there. Hobart conversely had 3 biggish cranes building new CBD structures (not sure what, but had to be at least 4-6 story buildings judging by the crane sizes).
I'm not trying to hype Tas at all (and I know that better buying ops exist in most states - I'm actually buying in QLD right now, but thinking of Tas thereafter); but as someone who's moved my portfolio into a place where I could afford to take a small risk on a CF+ property, maybe Tas should get back on the radar more (for both me and the IP community in general) .
I mentioned the white flight-ers and retiring LGBT peeps too. Outside of tourism, could fleeing baby boomers (who are comparatively cashed up compared to local Tasmanians) from other states become another growth driver ?
Thoughts please!
Launceston IP
I was interested in this thread as I think there are some investment possibilities in the Launceston area too, mainly for yield not cap gain. Return is hard to find these days of low interest rates! Getting at the right price will be essential though, as the selling price is often below the asking price range, having observed the market over 12-18 months. I was talking to a friend who worked in RE in Launceston until recently, and she was saying that there is good demand for rentals and a good Tasmanian credit check database available to vet prospective tenants.
It occurrred to me that mainlanders may be interested in buying and letting in advance of retiring to a cheaper and more attractive location than Sydney and Melbourne suburbs.
Away from flood plain and with no danger of land slippage (an issue in the region) is also important.
I am definitely doing research on Launceston, I have been visiting once a year but will step this up.
I was interested in this thread as I think there are some investment possibilities in the Launceston area too, mainly for yield not cap gain. Return is hard to find these days of low interest rates! Getting at the right price will be essential though, as the selling price is often below the asking price range, having observed the market over 12-18 months. I was talking to a friend who worked in RE in Launceston until recently, and she was saying that there is good demand for rentals and a good Tasmanian credit check database available to vet prospective tenants.
It occurrred to me that mainlanders may be interested in buying and letting in advance of retiring to a cheaper and more attractive location than Sydney and Melbourne suburbs.
Away from flood plain and with no danger of land slippage (an issue in the region) is also important.
I am definitely doing research on Launceston, I have been visiting once a year but will step this up.
When I was recently in Launnie I preferred it greatly to Hobart - it's almost like a mini Melbourne.
I saw a great warehouse opportunity zoned predominantly commercial but with a possible resi component allowed - I think a smart warehouse conversion in Launceston would do really well.
Hobart - personally - I would only invest in the inner suburbs - like REALLY inner - once off the A6 / Davey St - forget about it.
I saw a great warehouse opportunity zoned predominantly commercial but with a possible resi component allowed - I think a smart warehouse conversion in Launceston would do really well.
Hobart - personally - I would only invest in the inner suburbs - like REALLY inner - once off the A6 / Davey St - forget about it.
A good friend of mine moved to the Huon Valley several years ago. She is renting a delightful 3 bedroom home overlooking the river and an orchard, half the price of renting their semi in Sydney and her husband stayed in Sydney M to F at his brother's. Add flights and it was still cheaper than renting in Leichhardt. No pollution and idyllic lifestyle. It is definitely on the baby boomer's list of places to retire to or live short term over the Summer.
I was thinking the same thing about the Launceston warehouses.
I also think the north coast like Wynyard is a nice place to hang out over Summer.
I haven't researched any further since the Qld drought broke. I was very seriously about to move to Tasmania when SEQ's water supply dropped to 17% and falling.
I was thinking the same thing about the Launceston warehouses.
I also think the north coast like Wynyard is a nice place to hang out over Summer.
I haven't researched any further since the Qld drought broke. I was very seriously about to move to Tasmania when SEQ's water supply dropped to 17% and falling.
Business investment?
I think you've given yourself a good start to the argument about why Launnie may not receive further investigation.... If big business/big development aren't looking there, will there be the ongoing employment to sustain the rentals? It would also be interesting to look at the rental vacancy rates as well as unemployment trends.
I think you've given yourself a good start to the argument about why Launnie may not receive further investigation.... If big business/big development aren't looking there, will there be the ongoing employment to sustain the rentals? It would also be interesting to look at the rental vacancy rates as well as unemployment trends.
Interesting comment Aaron. Could you expand a little further? When I was in Hobart recently, the northern suburbs seemed to be moving well - commercial premises were maintained well and little to no vacancy. Just wouldn't go to the other side of the river.
My parents are in Geeveston and Launnie respectively, so I do a fair bit of travelling when there. Previous to this is was Pelverata and Hobart.
Huonville - neat, tidy, out of the way kinda place. Frankston would be the "black stump" for me. Still struggling to understand why Cygnet (short of the Gourmet Farmer) prices are what they are.
I look at where the employment is - everyone was harping on about Myer saving Hobart - sorry - but no. What will save Hobart are the lock and leavers with random injections of cash for artisan product and the younger generation making a living out of the Salamanca Markets, MONA off-shoots etc, so tourism and arts.
Industry - apart from there being fug-all - it's all just to the North, as mentioned. My Dad re-roofed the mill there, along with the Cadbury place. Houses - sure, no prob - but every activity in Hobart needs a car - EVERY activity. It's worse than Perf'.
So I prefer Launnie because I can walk from the Gorges into town then to the shops then to the harbour and fall into any number of pubs only open until 10...well, except the Cokc and Bull - they close at 12. Walk-ability makes a place open up and this is why it reminds me of Melbourne - so I think from a liveability POV, Launceston has better prospects.
That said, I'll find four dozen deals in Perth before I find one good on in the whole of Tas that fit my criteria. I simply can't fathom how everything I saw there, I owned a third of; as a WA taxpayer.
Huonville - neat, tidy, out of the way kinda place. Frankston would be the "black stump" for me. Still struggling to understand why Cygnet (short of the Gourmet Farmer) prices are what they are.
I look at where the employment is - everyone was harping on about Myer saving Hobart - sorry - but no. What will save Hobart are the lock and leavers with random injections of cash for artisan product and the younger generation making a living out of the Salamanca Markets, MONA off-shoots etc, so tourism and arts.
Industry - apart from there being fug-all - it's all just to the North, as mentioned. My Dad re-roofed the mill there, along with the Cadbury place. Houses - sure, no prob - but every activity in Hobart needs a car - EVERY activity. It's worse than Perf'.
So I prefer Launnie because I can walk from the Gorges into town then to the shops then to the harbour and fall into any number of pubs only open until 10...well, except the Cokc and Bull - they close at 12. Walk-ability makes a place open up and this is why it reminds me of Melbourne - so I think from a liveability POV, Launceston has better prospects.
That said, I'll find four dozen deals in Perth before I find one good on in the whole of Tas that fit my criteria. I simply can't fathom how everything I saw there, I owned a third of; as a WA taxpayer.
Thanks everyone for your insights and comments.
Still keeping an eye on Launnie and Hobart, but every investor bone in my body is still saying 'no!'. Perth I think I would actually be as equally cautious as Tasmania on! In 2-3 years time, Perth might bottom-out to 6'o'clock (the slide has commenced and gaining momentum fast).
As someone who has lived there, Aaron, I ask you this: what is Perth doing economically to ensure it mitigates risk of being a one-trick-pony town, once the mining boom completely ends/washing out? I feel llike WA has squandered all its treasures away and not bothered developing other sustainable industries. That's why I like qld, because even though its economy is a bit of a basket case too, it is clear they are developing (particularly in the SEQ triangle) other industries.
And you know what... Tasmania, though the weakest economy of all of them, is trying too. Food/arts/tourism is what they are pinning their hopes on right now. Its not huge, sure, but its something. And the thing is; Tas's economy doesn't need to be huge, it only needs to be big enough to sustain 600,000 people, not 1.6 million for instance.
I personally think agriculture is the answer for Tas. If they can't compete on manufacturing, resources, and to a lesser degree, education; ag should be the way forward. The state has so many micro-climates (a mate of mine in San Diego is an ag botonist and often talks about how Tas actually has a very rare diversity of soil types, micro climates, and elevations that make it have great potential to have a highly diverse crop-pool of at products from the ground, let alone all the cattle-based ag/farming that also presents).
But I digress.. Still on the watch in Taz and would love to hear more from investors and locals on their views on the growth drivers for the state.
In terms of locality I've been eyeing heritage semis/terraces in inner Hobart of late. CG looks stable but not great, however CF looks pretty great.
Still keeping an eye on Launnie and Hobart, but every investor bone in my body is still saying 'no!'. Perth I think I would actually be as equally cautious as Tasmania on! In 2-3 years time, Perth might bottom-out to 6'o'clock (the slide has commenced and gaining momentum fast).
As someone who has lived there, Aaron, I ask you this: what is Perth doing economically to ensure it mitigates risk of being a one-trick-pony town, once the mining boom completely ends/washing out? I feel llike WA has squandered all its treasures away and not bothered developing other sustainable industries. That's why I like qld, because even though its economy is a bit of a basket case too, it is clear they are developing (particularly in the SEQ triangle) other industries.
And you know what... Tasmania, though the weakest economy of all of them, is trying too. Food/arts/tourism is what they are pinning their hopes on right now. Its not huge, sure, but its something. And the thing is; Tas's economy doesn't need to be huge, it only needs to be big enough to sustain 600,000 people, not 1.6 million for instance.
I personally think agriculture is the answer for Tas. If they can't compete on manufacturing, resources, and to a lesser degree, education; ag should be the way forward. The state has so many micro-climates (a mate of mine in San Diego is an ag botonist and often talks about how Tas actually has a very rare diversity of soil types, micro climates, and elevations that make it have great potential to have a highly diverse crop-pool of at products from the ground, let alone all the cattle-based ag/farming that also presents).
But I digress.. Still on the watch in Taz and would love to hear more from investors and locals on their views on the growth drivers for the state.
In terms of locality I've been eyeing heritage semis/terraces in inner Hobart of late. CG looks stable but not great, however CF looks pretty great.
The inner city suburbs of Hobart are definitely heating up now. Some houses are being sold above the asking price, there are lots of people at open homes and many places are selling quickly. There are also significant increased sales volumes and mortgage market activity. Agents are talking about an increase in interstate investors.
I don't notice much change yet in the middle and outer ring suburbs.
I don't notice much change yet in the middle and outer ring suburbs.
Thanks for sharing all your research, C-mac. Tasmania has certainly made some changes for the better. When I went there many moons ago, they used to talk about the 3-eyed locals and the inbreeding etc.
Now it's the food and a great place for the cool baby-boomers to retire.
I agree that it's the young people who'll make it great. Markets, greenery, great food, nice old houses, so far out of the rat-race that you don't even bother, sounds good if you have time and money to spread around.
Now it's the food and a great place for the cool baby-boomers to retire.
I agree that it's the young people who'll make it great. Markets, greenery, great food, nice old houses, so far out of the rat-race that you don't even bother, sounds good if you have time and money to spread around.
For Launceston, keep in mind that management fees are slightly north of outrageous. Circa 11% is fairly standard plus letting fees. There also seems to be a hard ceiling on rent per week and tends to be harder to move anything above $350pw. Land Tax, council rates and Water are also pretty hefty.
