Can anyone explain to me why Tasmania continues to show growth. I have several IP’s there but am unsure as to why the region has seen such high growth?
I have no idea either. Maybe many people think that they can get positive cashflow in Tassie and thats all there is to investing in property in the long term.
I dont expect that to continue. We will get back to fundamentals in a few years. Tassie will show little if any growth, as interest rates rise recent investors will question whether the few dollars in their pockets is worth the stress and effort.
For locals who had properties 5-10 yrs ago – you can expect more bargains in the future.
A Good time to get out of that market then?
Hi,
some strong words there Yack, “I dont expect that to continue. We will get back to fundamentals in a few years. Tassie will show little if any growth” Tasmania for years has been underpriced this to some extent has rectified itself over the last few years however there are still some very good deals compared with the rest of Australia. I talk mainly of waterside property be it the ocean or one of their great lakes. Tasmania has a unique lifestyle and an ever increasing tourist population. If you were considering investing there then conduct your due diligence and no doubt you will see for yourself. Property is as you know not only about +cashflow but capital growth and other factors. As always location is one of those factors and for location Tasmania is unique.Finally no I dont live there but I have to be sceptical of those who refuse to buy in Tasmania but consider buying in rural areas in other parts of Australia that can be best described as one horse towns with very little chance of capital growth.
Each to their own, listen to others, but in the end the choice is yours.
Cheers
i reckon tasi still has legs. negative population growth is forecast by some but i question that. tasi has characteristics that people will/do find attractive in the years to come. perceived safety, slower way of life, pristine, relatively cheap (compared to mainland) etc
sure the local people look alarmingly alike but thats why we need to go there..
finally – not too many investment vehicles are gonna see the returns property has seen in the last 5 years.
get ready to accept 4-7 pct returns if yr lucky…
Originally posted by aussierogue:sure the local people look alarmingly alike but thats why we need to go there..
Fuunnyyy, Rogue! [laughing]
kay henry
Rogue
love your humour….. then I am not from Tassie[biggrin]ABC ran a piece on this back in May or June. It actually has population growth, not just price growth. First time in years.
It is the seachange. Mainlanders selling out cashing up and retiring down there. It was described as our equivalent of Florida (no joke..)
Problem is these people need substantial health infa structure, and Tassie has’nt got it. (neither has NSW but that’s a post olympic storey for another day )
Don’t know how they will cope with the cold, have a brother-in-law who bought up in Launceston and he is talking of relocating before he is out of his first winter.
Maybe the smart investment will be an upmarket over 55 complex.
I think areas on the north west coast still have a great deal of growth. I’m eagerly awaiting further price rises.
Population growth is definately there.
I recently purchased 10 acres on the outskirts of a NW town for 350k, to be subdivided into 40 blocks at 60k a block. Development will cost 800k.
Positive cashflow aint the be all and end all.In reply to your posting,I have to admit bias as a real estate sales consultant operating out of Devonport, In Tasmania.In my opinion, The reason for the on going growth is that for the first time it is easy to access Tasmania, with 3 Car ferries operating out of Sydney and Melbourne and with Virgin and Jetstar operating discount air fares.we also had a period of stagnation for the years 1996-2001 and so the spectacular gains we have had in the past 2 are really only catchup to where they should have been.The population is now increasing after many years of negative growth.
Tasmania defies all growth forecasts, seems the market there is thriving. I know I’ve sad this before, but Rosebery Tasmania provides some of the best value in this country. Rental returns are high. i.e My latest purchase there: $40,000 house, rental $130 per week. To me thats not a bad return. …
Aren’t you worried that Rosebery is a small mining town which relies heavily on employment by the mine for economic stability?
Thanks,
LuckyoneNot particularly, I’ll be long gone by the time the resource boom ends. The Zinc mine in the region is absolutely thriving, as is tourism. None of my tenants actually work the mine, hence not that worried.
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