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!