The Tasmanian Market

Hi Guys,

I would say “proceed with CAUTION”. Do your research very carefully and have some serious worst case scenarios to work off.

I moved there from Queensland in July 2002. Things were just starting to warm up property wise, then I got to see the train leave the station without me too. (quite painful, as I was not in the position to buy anything).

My biggest concern is ongoing industry/employment to back up your investment. Yes Tassie is going ahead Tourism wise and agriculturally. But I expect growth in other business is slow (compared to other states). Tassie is one of the lowest paying states in Aus, wage wise, and neither growth in Agriculture or tourism is likely to change that as they are not high payers either.

As to the West Coast, it is a quiet, sleepy wet little place a long way from everywhere else. Alot more tourism traffic going that way though and will continue to do so. So maybe somewhere like Strahn (spell check) which is remote enough to be forced to be self sufficient (hard to commute) and is becoming a more major stepping off point for tourist activities.

Be very aware that tourism is very seasonal, though more and more are braving it in winter in the name of beauty.

The other towns I that area, I couldn’t say.

Wynyard on the north coast, is a stunning place, especially Table Cape. The growth in property prices there has been astounding due to people moving there for lifestyle (mostly retirement/semi retirement).

I lived in Longford outside Launceston and worked at the local export meatworks. Employs around 300+ people (pretty big for Tassie). they have just put their new EBA to bed late last year and are in a major expansion phase. Time will tell if the state can supply enough cattle to make the expansion worth while.

Two points here.
1. I believe the meatworks will prop up the rental market in longford longer term.

Mind though that these people do not earn big money and also that plenty of people do commute to longford. To give you an idea, they were coming from Campbelltown to the south and Beauty point up the Tamar river and Westbury to the west.

2. If the expansion of the meatworks in longford is successful. It will put extreme pressure on the meatworks at Smithton, in the north west. which may affect property you buy in that direction.

In general I would be concerned that the lower end of the market is overvalued (from all those mainland investors. Oh the frustration I felt !!![bawl])

A friend recently sold a rental property for $3000 less than he paid for it. (not a happy boy). But that may be an indication of what is going on.

I am also concerned about the number of interstate people moving there. For me, Winter 1, I coped, Winter 2, I didn’t notice, Winter 3 I couldn’t face up to and left. How many others will be like me and what effect will that have on the market too?

Anyway, all this is just my opinion, and I don’t have an IP yet. I love Tassie. But please do your RESEARCH.

GOOD LUCK

Hi ‘The Petersons’
There is a ‘search’ function on this site and Tasmania has been the subject of many conversations, so it may be a good idea to see what has been said previously. (Having said that, I have never used the ‘search’ function.)
I was in Tasmania last week looking at one of my properties. The following is my take on the Tassie from the people I spoke to. Don’t take what I’m saying as a substitute for your own research, it’s just what I gleaned from a handful of people:
As everyone knows, Tassie boomed along with the rest on the country over the last few years. I get the feeling that the latest boom put Tassie ‘on the radar’ for mainlanders so its price movements may mirror those of the mainland more closely from now on.
Prices fell back toward the end of last winter, but seem to have levelled out now. I imagine prices in summer would be stronger as there are more mainlanders down there having a sticky beak.
A PM I spoke to was laughing about the ‘seachangers’ who moved from the mainland to retire in Tassie. By the end of the first winter, many of them had packed up and put their homes on the market.
I’m not sure what the tenant pool is like in smaller places. Probably the same as the tenant pool in small mainland towns.
As ‘Ravtown’ said, the West coast is largely dependent on tourism (and mining). One industry towns make me nervous.
Yes, Wynyard is a good spot. So is Penguin. They’ll small, but very close to Burnie – pop 17,000. The block of flats I own is in Somerset – 5klms from Burnie. It’s on the coast, but not a particularly pretty stretch of coastline. It performs pretty well for me, largely because of the great PM who manages it.
It’s good that you are going to go to Tassie and have a look in person.

Scott

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the west coast….example Queenstown. The last frontier of dirt cheap housing. no bank, no rental managers. The town died but lately showing signs of comming alive. Most high paid miners travel home rather than stay on the west coast.However mining jobs are being advertised. A major tourist operator opened a Hospitality training centre in Stahan.Works up grades etc. A main street Hotel that was shut downed was just sold for 180K. Could this town be brought back to life???? you know it is all the Mainlanders spending in Tassie ,so keep up the good work [brave]

I read that 4 Million + will be spent in Queenstown to up grade Electricity to the Mine and surround. Is this more signs that this town is waking up?[inquisitive]

Don’t worry about postcodes too much. You can get 95% loans down there on the westcoast for amounts up to $150,000.

Only one mortgage insurer will approve loans down there, and they will generally only approve a few loans per client to reduce their risk.

Even without LMI, you will be able to get 80% loans.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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