West Coast of Tasmania

Unfortantly zero capital gains. It’s already had it’s run, and due to the number of out state buyers droping off I don’t think it is fully sustainable with the increases with the price increases we’ve seen.

The east coast of Tas, is still very beautiful with rolling hills, country pubs, etc, where as Queenstown has a moon like landscape… Some I guess would like it…

Rgds.
Lucifer_au

Rgds.
Lucifer_au

Bicheno has a number of subdivisions going ahead at present and bumper prices are expected. Land that wouldn’t sell at 15k per block is now going for 100k. Still money to be made if you can get land.

Coles Bay has a big Federal hotels development going ahead and is already expensive – although there are some sites suitable for medium scale subdivision if that interests you.

From what we have seen, prices are fairly stable now, but things never seen on the island before are going great guns. The Cornwall square development in Launceston is a medium rise inner city apartment building with prices from 295k-600k and is two thirds sold already. The Seaport development (also in Launceston) has no trouble selling serviced apartments for over 300k each, and has a healthy retail precinct below.

Waterfront developments in Hobart are selling for big dollars – such as IXL. Tas seems to be undergoing its own cultural revolution and things are changing greatly. I am very optimistic about the future.

tassie probably has had it’s run. Most of the inflow of funds is from melbourne but will be less as that cools down or even gets icy.

The scenery and resources will be worth something one day, but who knows how long that will take. Weather too cold to be a retirement mecca.

That said, there are still some +CF prospects like georgetown with alcoa thing nearby, but this is contingent on the resources cycle.

I was looking at queenstown a couple of weeks ago on the web. Property there is very cheap. I was thinking is there any way the mine around there will be operating properly again (I like ugly moon scenery) because houses there are going for well below replacement value.

Has anyone been to the tassie ski fields. Is there any development potential there or are the slopes too low altitude for decent snow ???

The word around town here in Zeehan (West Coast) is the the mines are gearing up and there is a drastic shortage of rental accomodation. I have been watching properties around town popping up for sale and achieving good prices. Finding somthing of decent quality is difficult however and property managers are in short supply on the West Coast.

I have interests on the main land but still looking around the West Coast…..the resources thing does make me cautious.

Dazza

[hat]

In the latest API mag (http://www.apimagazine.com.au/) there was an article on a family who invested on the West Coast, a year latter they sold the property because they couldn’t find a property manager. It wasn’t a total diaster because it did go up by $10K, but after all expenses (costs in buying, costs in selling and they was slightly neg. geared because she couldn’t rent it out, even though the local RE agent said they would rent it out to the husband) was it worth it? For perhaps $4K or even less????

Way too little money for the effort expended and the risks.

It’s funny about the mines because I was on AussieStock forum and they were discussing a mining company called Pasminco, apparently it’s a basket case, and no one is touching it…
So if you invest on the west coast make sure you buy some shares in the company, as they are the major employer!!![baaa] (hay thats the first time I think I’ve ever used that type of smiley in almost 600(?) posts!).

Although I might seem down on the West Coast, I just see it as an area to be cautious with. Usually if any mines move in they take all the skilled tradespeople first (well that has happened with two towns I invested in) and it almost becomes nigh impossible just to get a tradey, and as SJA said “A lot of those buildings seem quite ancient too.” Lucky my two purchases were of buildings that were pretty new, so hardly any maintenance issues… but when a light wasn’t working – that bill stung badly… And the PM even had him on a retainer!

So becareful and beware. As I’ve said personally I like the East Coast – PMs managing it for you (it is almost impossible to self manage a prop. when you have to jump on an airplane), tradies who you can get hold off, and are quite reasonable, and finally usually the areas have one or more industries, the West Coast in reality has only one – mining, when it’s good it can be excellent, but when it’s bad… well lets just say I am lucky that my two properties were CF+ by $10 p/w because I had zero cap gains. Thankfully the boom came!

Rgds.
Lucifer_au

Hello Ty,

I would say go for it. Essentially you are getting into property at pre boom prices.

But be business like about it. Just because you get along well with your brother doesn’t mean you shouldn’t set the deal up properly.

You say the house should bring in $120/week. Have you really looked into this? Consider what sort of tennant will your property suit and are there many of them around?

If you two of you are too busy, who is going to manage the property in the case of vacancies, bad tennants etc?

Have an AGREED exit strategy. If it doesn’t turn out as you both planned. How do you dissolve the partnership?

These are just some of the things I think you should have a pretty good handle on before you go into this.

cheers

Hi Ty,

Have a bit more of a look around these forum boards.

There was a recent topic on the first home owner grant. The crux of which is that you can own property as an investor and so long as you don’t live in it, you are still eligible for the FHOG at a later date (assuming you meet all the other criteria). The links to the relevant government websites were in the thread somewhere. Won’t be too hard to find if you run a search on FHOG.

I got tripped on this one. could have been playing the game a little earlier [biggrin]

Also one on coping with a uninterested/uncertain partner file path below.
https://www.propertyinvesting.com/forum/topic/14918.html

In another Tassie thread I mentioned that the longford meatworks has/is going through expansion phase and wondered what impact that will have on Greenhams at smithton. Maybe something to consider as well. (Before I left there were articles in the Tas Country saying that the state could only support one ab).

I’m not trying to talk you out of it. I would go for it myself. Just throwing things out there.

cheers

heather