Would you be game enough touch this stuff?

[jaspn]

Large 713m2 block, 20 minutes to Hobart city, mountain views, water glimpses, services, $35k.
http://www.realestate.com.au/property-residential+land-tas-herdsmans+cove-200563959

Tenanted homes with easy 9-10-11% yields, all 20 minutes from Hobart, eg:
http://www.realestate.com.au/property-house-tas-herdsmans+cove-111602563
http://www.realestate.com.au/property-house-tas-gagebrook-116558147
http://www.realestate.com.au/property-house-tas-gagebrook-115785503
http://www.realestate.com.au/property-house-tas-gagebrook-116541947

I actually took a drive around here the other day and there's a few nice new subdivisions going up in the area, selling well obviously due to price point.

Yes, this Hobart's version of Sydney's Tregear or Brisbane's Logan and is risk central, but damn this stock is cheap. Not much on the horizon for the Tassie economy in the short term, but when it turns LOOK OUT! a la 2003? Maybe, maybe not.

 

[beachside]

From a return point of view, at $210 pw you are probably only be around neutral once you take rates and insurance into account - has a greater impact on low end properties and the R/R %. At $250 it is looking better and I like to keep $250 pw as a minimum rental on any property otherwise repairs and maintenance can chew up any +ve cashflow quickly even at 10% R/R - which may only equate to $800pa (a water heater). So you would be doing it for growth potential rather than +ve geared/cashflow. But they are brickies

 

[ok180]

Like beachside basically said. Yield is good but the dollar amount is low. Insurance on these things is the same as a 300k property as would be the rates, utilities, repairs etc.

Yield aside there is a sweet spot you want to fall in with property price wise where you can cover things beside interest payments.

 

[Angel]

Hi Jas
I looked into buying a waterfront house in Gagebrook many years ago. It was a 3/1/1 for about $160K. I see the capital gains have gone backwards. This was in the few weeks prior to the GFC when I came within a whisker's breath of putting in a contract to buy a huge block of serviced land on the waterfront somewhere else but hubby said no; which has at least maintained its value.

 

[skater]

We bought two in Tassie a long time ago now. One in Gagebrook, the other in the outer suburbs of Launceston (can't remember the name ).

At the end of the day, you need to do your DD. Yes, the rental is low, but you need to weigh it up with everything else. Especially how much you earn! Remember that you can hold onto a heap of these cheapies, when it might be a problem holding onto even one low yield property.

Places like this might be the solution for you, or they might not. Only you know your situation.

We sold the Gagebrook one for a small CG, but we sold it because the neighbours were completely feral & there wasn't much we could do from NSW. The Launceston one we sold for triple what we paid for it. Both of them were bought for yield only, about 15 odd years ago now. Prices haven't moved much since then, so who knows, they might be due for some CG.

Brick houses need little maintenance, so as long as they are in good condition, they should not pose too much of a problem, just make sure you really check out the neighbourhood first, and ensure that you've got a GOOD property manager.

 

[Lovehouses]

I used to live in Tassie many years ago and managed to get a government house after 2 days of being on the waiting list. I applied because there was a documentary on TV about how Hobart has 100s of empty government houses. I am quite sure Gagebrook was one of those suburbs on that list. I stayed for 2 months and then moved back into a nicer suburb. I was in Clarendonvale. My point is that if you are trying to rent it privately there are also government houses around that you might have to compete with. The first on your list is an ex government house. In Clarendonvale if the house stood empty for just a weekend the windows were smashed in.

 

[cadence]

Personally ... no. I live in Sydney. There are suburbs around Penrith where you can buy 2br units for $200k. I would probably pick one of those over the Tassie options. But I'm sure I've missed out on many profitable endeavours based on such aversions.

 

[Banvard]

Around Penrith for $200k for a 2br? Where?? I will buy it tomorrow