in tas property prices have definately gone down with auctions, new homes and general houses not selling. so my question is,is it a good time to buy? houses aren’t selling so could you make rediculous offers and hope that properties don’t go down more?.
also even if you do buy , rents down here havn’t gone up much and there arent many ,maybe .01% of houses that would meet the 11 sec rule. so what to do ??
[grrr]Maybe look elsewhere. TAS prices increased at ridiculous levels due to some current affairs show stories and this was unsustainable. People from the mainland saw the lower prices in comparison to other areas (where there is actually a demand for property) and they pushed the prices through the roof when they snapped them up. I think the market in TAS is just correcting itself back to what it should be. Very low!
The Mortgage Adviserhttp://www.themortgageadviser.com.au
Janet the idea to buy property in Tas is a good idea, Just think of the location, the town you are looking to buy in and work out a reasonable rental return, could their be captial growth in the future. The 11 sec is gone in most good towns in Tas. Also look at a place that can have some impovements done to it to push up the rent.
Stay away from Queenstown, Rosebery and Zeehan, if you are only a new comer to property investment. And you are right to say make a rediculous offer, you never know if you don,t have a go.Regards
RobertA few reasons why I would never touch Tassie include the decreasing population, lack of employment and the weather. If these are negative at commencement of doing your due diligence, there is no point looking further.
Young people want to get out because it is boring and older people move North because it is too cold. Large companies do not set up headquarters in Tassie as it is economically unviable so it is lacking in jobs.
Does anyone have anything positive to say about Tassie which would make people want to live there for more than the short-term?
The Mortgage Adviserhttp://www.themortgageadviser.com.au
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Hi Mortgage Advisor,
Here’s some positive things about Tassie:
Magnificent scenery.
Incredible old growth forests.
Slower paced lifestye.
Community spirit.
Healthy tourism industry.
Nice people.
Destination of the classic Sydney to Hobart yacht race.
Historical sites.
AFL
Local markets.
Monthly country & western concerts.
Melbourne comedy festival roadshow.
Cradle Mountain nation equine endurance championship.
Antartic Tasmania midwinter festival.
Jazz fesitvals/art exhibitions/musical recitals.
Performances by Delta Goodrem/Aust Youth Orchestra/and many others.I would think that Tazzie has a lot to offer those who want to live there more than the short-term.
I live in NSW now, but thoroughly enjoyed the 2 years I lived in Hobart. I left for family reasons, not because I was bored.
Hi Janetbianka,
Follow your dreams. I think you have plenty of time to wait and see if prices go down further or alternatively if you have researched and are confident/keen of purchasing now, put in those low offers.Tasmania has traditionaly lagged behind the other states in property values, but buy in a good area, at a low price, maybe renovate to add value (for Capital gain & for increased rental), and you should do quite well over the long term.
However, Decreasing population, if that is the case, should be a big concern as there may not be a demand for rental properties.
Make sure you do heaps of research (due diligence)as mentioned earlier about employment prospects in the area you want to purchase. Don’t rely on one industry to provide employment, such as a mine. It may close, the town dies, and your left with a house you can’t rent or sell. [blink]
I think it’s a bit frustrating at the moment in many areas as we wait to see if prices are still going down or stabilising. My suggestion would be to take your time.
Regards,Sharon
Dear Mortgage Advisor, From a investor standpoint your summary of Tasmania may be correct. I think that lifestyle considerations make It a wonderful place for people to consider when looking for a place to live. Believe it or not, waterfront properties are still available at, by northern standards, reasonable prices.
Originally posted by The Mortgage Adviser:A few reasons why I would never touch Tassie include the decreasing population, lack of employment and the weather. If these are negative at commencement of doing your due diligence, there is no point looking further.
Population is actually increasing in Tasmania
Unemployment has declined over the last few years.
Less average rainfall in Hobart than Sydney
Industry is an issue but there is an astounding amount of development going on down there at the moment.
I would never invest in the small towns either, but Hobart and Launceston are both quite large cities with catchment populations of over 100k.
BTW I sold a house in Lton last week after 3 weeks on the market at a price I wanted so things aren’t going too badly.
there is still opportunities out there janet. you really need to look everywhere.
agree with anubis that tasmania is not such a bad place to invest if you are looking at the major towns (Hobart/Launceston). I was one of the suckers that bought in Queenstown a while back, and while I haven’t totally regretted the purchase, with the benefit of hindsight i probably should have put my money elsewhere. Having said that the investment is cf+ and we have long term tenants in it. As far as future growth is concerned, I agree that stagnant population growth is not good for future rental demand. On the brightside, tourism in Queenstown is becoming more popular (the Wilderness Railway won the best Australian tourist attraction recently) so the reliance entirely on one industry is shifting. Anyway, as I said I don’t think I would invest on the West Coast particularly now having known what I know now. Ah, well thats learning for you!
Have you considered New Zealand. You also have great views, but also positive cashflow and high growth in a major city.
Regards
Nigel Kibel
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Janetbianka
Only way to have your question really answered (yes or no) is to do your due diligence. If the numbers add up, then ‘yes’, if they don’t, then ‘no’.
E.g If you want +cf and find a cf+ property then the answer is probably yes.
If you want capital growth, then you will probably only get it in the near future if you add it yourself via renovation. Don’t buy at the top of the range or you may stand to lose money.
You need to work out what kind of property suits your needs – long term vs short term, cf vs cg, your personal risk levels, whether you’re using the bank’s money or your own, etc.
Yes it is great time to buy in most of the states but i’m not too sure about Tasmania.
You can find much better properties and higher appreciation in SA, QLD and WA at the moment.
Market is flat in most of the QLD and WA where SA is holding pretty well in most of the parts.
Make sure you have a investment plan of where you want to be and how do you want to achieve it by property investing.
You can have positively geared properties as well as one negatively geraed for e.g block of land that after you done your research it indicates that prices will appreciate and land value will increase.
Therefore you can subdivide the lot and make quite abit of money.
It all depends on your strateg… none of the techniques are bad as long you do you research…
Remember: IF YOU FAIL TO PLAN YOU PLAN TO FAIL
YOUR GREATEST ASSET IS THE INFORMATION IN YOUR HEAD AND THE AGE OF YOUR INFORMATION
[biggrin]
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