What about Tasmania?



From: Anonymous

Hi All

I have been looking at Tasmania (Hobart) recently and at the moment you can buy a 3 bedroom property brick and tile for about 55000 near the city. The interesting part is it will rent for 130 per week and is consistent with the rental market being very stable at present compared to other cities in Australia. The capital growth is virtually nil but hasnt moved much for ten years maybe it is about to?
Anyone have any thoughts? Would those sort of figures be good anyway?
It is tempting to buy 5 rental properties for the price of 2 in Melbourne at the moment.
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Reply: 1
From: GoAnna !

What is the distance from Hobart CBD? Which suburb? It is difficult to comment without this information as Hobart is a much smaller than Melbourne and what we might consider to be "inner" in Melbourne may not be thought of as such in Tassie.

GoAnna !
Why not go out on a limb, that's where all the fruit is. (Mark Twain)
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Reply: 1.1
From: Anonymous

The area is around rosetta,berriedale which is about 10 minutes north of the city.

Thanks for your reply
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Reply: 1.1.1
From: The Wife

I have lightly monitored the Tassie market, as far as I can see, there has been some considerable price movement in the last 12 months.

How come every tassie person I have spoken to, wants to invest in QLD?

~Life is a daring adventure, or nothing at all~
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Reply: 1.1.2
From: GoAnna !

Hi anon

I would be surprised if locals regarded these areas as being "close to the city". My understanding is that in Hobart "close' means walking distance rather then driving distance. However given that I am also a Melbourne dweller a local perspective would be greatly appreciated. The rental market also varies enormously depending upon where the houses are located.

GoAnna !
Why not go out on a limb, that's where all the fruit is. (Mark Twain)
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Reply: 2
From: David Nolan

Hi Anon, interesting question, "is a yield of 12.29% on gross rental enough to warrant purchase of an IP". Answer: depends on your long term investment objectives.
If you are investing for positive cash flows and you can secure depreciation deductions as well as a 12.29% yield, it may well add value to a property portfolio.
If, on the other hand, you are looking to build a property portfolio over the long term you will probably find that the capital growth on your portfolio has greater value to you. You can borrow against this increase in capital growth to invest into other properties.
It can take quite a long time to amass sufficient capital for additional investments when all you can save is the net cash flow after costs and charges.
However, a balance of high income and capital growth is the desirable position for most investors. It may be that this can only be achievable through purchasing different properties in different markets.
Happy investing
David Nolan
Australian Property Concepts
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Reply: 2.1
From: Anonymous

Does not matter where you are. Or who you are with?

Tasmania is always a great place to visit.
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Reply: 2.1.1
From: Debbie .

I have 2 IP's in Tassie.

The first was $59k and has been rented consistently for $145wk. Received letter from agent to advise rental market very strong, suggest rent increase of $10. Not had to spend a cent on it and borrowed all costs.

Second purchased for $28k, spent $5k on paint & carpets, rents for $100wk. This one not as good an area, however, I am still making money each week with NO cash input.

I am not an expert, so seek professional advise, but I would suggest if investing in Tassie to borrow P&I because capital growth is negligible, however both properties have had some small capital growth in the last 12 months.

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Reply: 1.1.3
From: G G

Berriedale & Rosetta is actually about 15-20 minutes from Hobart CBD. However, they are pretty close to Glenorchy CBD where there's enough facilities, so people dont have to travel to Hobart. Yes we are spoilt and dont like travelling too far.
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