Hi everyone,
I’m from Melb, and thinking of investing in Tasmania. Anybody got any good areas to suggest? I have seen a few cheaper properties around Clarendon Vale area, about 9.5 kms from Hobart, but it’s a housing commission area?
Do any of you buy these sort of ex-housing commission homes, or is it better to steer clear of these potentially problem areas? The cashflow seems to be there, but at what expense???
Any thoughts would be great,
DelHey B man you out there ????? Your part of the world.
Enjoy
AD [:0)]“Carpe diem, quam minimum credula postero.”
Lat., “Seize the day, put no trust in tomorrow.”
-Horace, OdesHey Wilandel, how are you doing?
I just got back a few days ago from Tasmania as i have recently bought a brand new villa in a suburb outside Hobart. Good suburbs down there are: Glenorchy, Claremont, Montrose, Goodwood, Moonah and Newtown. The last two are quite pricey as they are ‘trendier’ suburbs.
I have a couple of real estate contacts down there that are pretty trustworthy, so if you’re keen just let me now and i’ll give you their details. The only thing i’d say is that if your keen to buy you’ll have to virtually buy on the spot. No word of a lie, i went down there and i saw properties list on a thursday and sell by close of business that day. It’s phenomenal. The thing is that real estate agents play God down there, literally they will list a house, pick up the phone and call an investor from the mainland and they’ll snap it up over the phone. This being the case it is important to form a good relationship with a couple of real estate agents otherwise you won’t even get a look in.
The other good thing is that rental vacancy rates down there are virtually nil, i sat in a real estate agents office for an hour and watched people come in and get turned away because there was nothing to rent.
Though Clarendon Vale is a commission area, it still isn’t too bad, but again if you choose to invest speak to this contact of mine as he is very trustworthy.
STAY AWAY FROM GAGEBROOK AND ROKEBY, THEY ARE BAD, BURNT OUT CARS, GRAFFITTI ON HOUSES ETC. I’M NOT EXAGERATING EITHER.
The other good thing about tasmania is that you make your offers on the actual contract, if it is accepted your bound to it and so is the vendor, therefore you can’t get gazumped.
I don’t know if you’ve been to tasmania, but the majority of housing is pretty old and some need heaps of work, so it’s important that you see photos if you can’t get down there. This is where knowing a trustworthy real estate agent comes in.
David
Hi david
Do you have a Real Estate contact for Launceston or Burnie?
cheers Joanne
Hi JUMBO (David), You’re unreal!!!
Thanks for the great advice. Yes, I have heard from an agent down there that the good properties are being snapped up within a couple of hours. Now I believe him.
I really appreciate your tips on suburbs too, especially the ones to steer clear of.
If you don’t mind, I’d love to have a chat with a reputable agent that I could trust. My email is [email protected].
I hope that I can return the favour to you sometime.
Thanks again,
Del
[^]Let me know if I can help you with anything.
Hi All
good preci’ jumbo.
Our reading of the market is that is is hot hot hot. We have been trying to buy property in Tas, but have been out bid many times by elusive “investors” [
]Seems to us that many people are just getting on the bandwagon and buying; irrespective of doing their due diligence.
Missed out on two a few weeks back where we were out bid by unconditional asking price plus X % offers. Know of an auction where the shell of a derelict house sold for nearly 2/3 the price of a fully renovated place next door !
I think that Jumbo’s call on building relationships with the market in its’ present state is a good one.
Joanne, try the Professionals office in Lton – Steve Eyles is very good. Also Deb Billing at Ray White. Professionals in Burnie – Gay Lyndon
the B [
]Hello all.
Joanne, I don’t have a specific contact for Launceston or Burnie, but i have spoken to many agents down there. Sorry i can’t recommend anyone.
Del i sent you an email, i hope you got it.
BYE
I would be concerned about investing in Tasmania. What is their population growth ? and projected capital growth ?
Hello hwd007.
From 1996 census to 2001 Census, Hobart has had 1.38% growth rate, virtually nil, in some areas it has been negative. The attraction to Tasmania is that it is basically a wellfare state with two classes of people, those rich and those poor. This combination seems to make it a great place to achieve great rental returns as the Government provides rental assistance. I invested in Tasmania with the knowledge that property probably would not achieve any real capital gain, possibly only adjusting for inflation. This does not worry me, even if i don’t achieve any capital gain my strategy was to be making the gain on a weekly basis, passive income. The good thing is that the government has plans in place, well atleast in the town i bought in, that will help to drive tourism and encourage investment. It has so far worked and as i stated in an earlier post there is a great influx of investors,which are driving property prices through the roof anyway. This helps in two ways, capital gains and it keeps home owners in Tasmania out of the market forcing them to rent, further strenghtening it.
All this information is stuff that i have researched myself, and to me it makes sense. If the gain doesn’t eventuate i am still achieving the passive income.
My 2 cents.
Has anyone considered investing in motel/ hotels in Tasmania.It is possible to find properties in the 1-2M range that yield 8-12% for the freehold. the leasehold is sold to an operator for say 30 year term. My boss has 10M plus of properties and was advised that these properties are undervalued. The broker sources a deal for 1.8 % commision. These properties meet the 11 second rule. If the leasehold operator doesnt pay, one can always sell the leasehold on. A typical example would be a 30 bed motel for 1.3 M on 30 % deposit plus costs ie $440K and return of $150K less $85 K for interest = profit of $ 65K on $440K initial outlay ie 15% return plus possible capital gains.
Would Steve buy one good high yielding property for 1.5M or 20 cheap ones for 75 K if they both met the 11 second rule. Similar deals can be had in some of the larger population centres in Qld , and stamp duty and land tax is much lower. I am more interested in what a high net worth individual would purchase ie 10M plus, than someone with 10K or so deposit can buy. Does Steve still buy 50 -100K bargains in rural centres or does he invest in much more sophisticated arrangements that are beyond the scope of the average wage earner on 50K or so. It should be obvious that only one in a hundred average wage earners will bcome wealthy and only a small percentage of these will be financially independant ie 10 M plus, like my boss and Steve ( ??? ).I have read most of the reader’s comments on the forum, and feel that my boss ( and financial mentor ) has a better idea about wealth creation, than the contributers. Sure anyone can by 1 0r 2 or 3 houses in Moe, but they wont get rich doing this. Also who will buy them , when rates go up and the investors decide to offload these investments.
Any thoughts re. these ideas.
Regards Mike 127.[]Mike,
In such a purchase who is responsible for payment of ongoing expenses such as rates, insurance, repairs etc. I assume that the operator is. Is that right?
Just another thing to be wary of. I have discovered that council rates in Tassie are astronomical. Can be as high as 2%.So take 6% interest rate and add 2% for rates and the +ve gearing can sometimes look a little shaky.
Has anyone else noticed this?MJK
Mike, you are probably right that your boss has better advice than most contributers, but most newbies dont have a 30% deposit to buy a 1 million hotel. You have to start somewhere. I started buying little dumps in moe and morwell and 3 quickly became 30. Now these are being traded to buy whole blocks of units and medium commercial. Which comes back to the point that if you dont have much money, you have to start at the bottom and trade your way to the bigger deals. And not speaking for Steve and Dave, you’ll probably find that they have a whole lot more than lots of 50k houses!
i done some scouting around launceston a coupla times .
the rates there are calculated as an all inclusive charge of council,water,so aint that bad.
there are plenty of cheap houses such as ‘ravenswood’ but are housing comm and are usually headaches.
i ahd a lot of inspection around the chaeper suburbs such as newnham’ and mayfield etc.
cheap for a reason[8]Hi All,
I live in Tasmania just out of Hobart.
There is NO WAY I would purchase in Clarendon Vale, it is right next door to Rokeby and just as bad. (burnt out cars, etc)
Sure, you can get cheap houses, but there is a reason.
There are better suburbs for similar prices with great rental returns, eg Risdonvale, Moonah, Glenorchy and Claremont.
We have just purchase a house 5 minutes from the city for $80,000, spent $10,000 on renovations and it will be revalued at around $120,000 – not bad, but we should be able to rent it out for $160-$200 a week.
Hi All,
Its great to see so much positive feedback about the real estate down here in Tassie. I have just recently returned to Tassie and thought I may as well take advantage of the cheap housing prices and good returns.
If its ok JUMBO, I would love to have some reputable real estate contacts down here. My email is [email protected].
If there are any other investors investing down here specialising in Positive Gearing and WRAPS/Lease Options or want to know something about the Hobart area, I would love to have a chat. I am a newbie to real estate, but I learn quickly. Feel free to drop me an email if anyone is interested.
Any help will be greatly appreciated.
And Thanks again JUMBO.
Kindest Regards,
David John
Hey Jumbo , would like to share some details of your new villa there as i am interested in something similar.
thanks-d-
Listen to askegg
he knows what he is talking about. i bought in clarendon vale in 1997 for 33k. i have 21 properties across Oz. Clarendon vale is the worst area i have experienced. i have had more trouble in clarendon Vale than all my other properties combined. I own homes in Elizabeth SA, Latrobe Valley and they are great areas in comparison. luckily i sold Clarendon vale this year 55k glad to be out. my insurance agent can’t even give insurance for more houses in this area. Not one good tenant in 6 years last tenant did 5,000 damage (covered on L/L insurance, Even the police station got burnt out
westanBeing a Tasmanian I can assure you that the last place I or any thinking person would buy a rental property would be in Clarendon Vale. Every state must have areas that are no go for very good reason and this is Tassies. As far as the general market is, it has simply gone mad and it is true that properties are listed and sold in the one day. So how on earth would an investor check out the property properly, another thing the state Government has been selling off a lot of unwanted housing stock e.g 3-4 bedroom houses, but in the state budget (week before last) announced they we’re to purchase and build 1 & 2 bedroom house/units to ease the demand. At the end of the day this will affect the rental market and although we have had a population increase of some 1000 people when the bubble pops there is going to be a glut of rentals as we saw in the mid 90’s.[
]read your article, with interst,
I renovated a large number of properties in Hobart in 1990-1995.
had them revalued up from purchase price.
however from the valuations in 1992 on a block of three, the value went down from 120,000 to 105,000. They have now gone up to 120,000 – 130,000. not a good return for nearly 10 years
its nice however to see this increase but dont expect it to last or stay for long
In addition the rent started at $150 per week in 1992 then went down in 1995 – 1998 to $140 per week.
at the present time they are around $160 per week and the properties are in North Hobart one of the better inner city areas.
YOU CAN EXPECT THE MARKET to fall back .
Timing is the thing, and duration
dont forget that the Tasmainians are paid LESS than mainlanders so rents will always be lessI am still in the process of settling property from my family seperation and will be selling out once that is finalised to buy on the mainland
if any one wishes further infor they can email me
thanks all
Tom
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