Hello, I want to live in Hobart in the not too immediate future and thought of buying an investment property that I will be happy to live in. I have found a property that I like in a suburb called Berridale which is 15Ks to the hobart CBD.
I have no idea on the returns from investment properties in Hobart and want to know if there will be any capital growth (moderest expectaions) for properties in this region.Can anyone living in Hobart or investors with first hand experience shed some light for me please? The investment property I am looking at costs 400K and is in Berridale. I can see from google maps that this suburb is well established but I cannot get any information on the median growth for this suburb.
Also can anyone tell me if I will be able to find tenants for this house within a reasonable time frame; the agent mentions that the rental income I can expect would be in the 400 to 430 per week range.
I am quite nervous about this investment as emtionally I feel attached to this property; my gut feeling tells me its not a bad deal but I do not have any idea about property growth in tazzie and in particular this suburb. I do know that there are very expensive properties in the Hobart CBD and sourrounding places.
Thanks
Futzy
G'day Futzy..
.
I have 3 I.Ps in Hobart and they are all provide good rental returns 5-6% and are tennanted 12 months of the year. We have 2 in Kingston (15km from hobart) and they rent well but our townhouse in the middle of Hobart (Sandy Bay) rents within a week of tenants leases finishing, often with 3-4 parties submitting applications. If I were you I would spend $400k closer to central hobart. Low socio-economic suburbs around Berriedale and I would be very suspect on a rental property exceeding $400pw in this suburb… good luck with the search. Cheers
tuggerHi,
I have two investment properties in Claremont, which is just north of Berriedale. I've had them for 4 and 5 years respectively and had the same tenants in both since day dot. Rents have started to increase reasonably well in the last 12 months and I've got a pretty good property Manager, achieving well over 7% of yield. Buying something that you are emotionally attached to for investment purposes can lead you into a bit of danger though. I too, would think about moving down that way eventually, but not to live in what I currently own, I think that can confuse the issue sometimes. FYI, I've had good growth from 04 to 07 but things have slowed in the last 12 months.
Hope this helps.
NNHello Tugger, thank you very much for your valuable input. I truly can appreciate the value of properties in the CBD as well as popluar sea side suburbs like Sandy Bay. I stayed in Sandy bay for a week and really liked the place. The people in Hobart are very friendly and relaxed.
Take care
Futzytuggerwaugh wrote:G'day Futzy..
.
I have 3 I.Ps in Hobart and they are all provide good rental returns 5-6% and are tennanted 12 months of the year. We have 2 in Kingston (15km from hobart) and they rent well but our townhouse in the middle of Hobart (Sandy Bay) rents within a week of tenants leases finishing, often with 3-4 parties submitting applications. If I were you I would spend $400k closer to central hobart. Low socio-economic suburbs around Berriedale and I would be very suspect on a rental property exceeding $400pw in this suburb… good luck with the search. Cheers
tuggerHello NN, thank you for giving me info that is re-assuring for the novice investor.
I do not really expect any growth in today's market and want to hold this for atleast 3-4 years. When I decide to move to Tassie, then I can decide whether I want to sell this investment or purchase another one based on my financial situation in the future.The home I am purchasing in Berridale has got spectacular views and very modern and has contemporary finish. I am hoping to get a good agent to manage the property if the sale goes through smoothly.
Can you recommend any property manager for taking care of my investment property?
Take care
Futzynicknovember wrote:Hi,I have two investment properties in Claremont, which is just north of Berriedale. I've had them for 4 and 5 years respectively and had the same tenants in both since day dot. Rents have started to increase reasonably well in the last 12 months and I've got a pretty good property Manager, achieving well over 7% of yield. Buying something that you are emotionally attached to for investment purposes can lead you into a bit of danger though. I too, would think about moving down that way eventually, but not to live in what I currently own, I think that can confuse the issue sometimes. FYI, I've had good growth from 04 to 07 but things have slowed in the last 12 months.
Hope this helps.
NNI use Elders Brown and Banks. I've had up and down experience with them, but we seem to be in a good space now. I find their accounting pretty good and their inspection cycle pretty ok. I have heard that "The Rental Centre" which is an offshoot of Petrusmas (or at least used to be) is pretty good. Petrusmas is like the biggest R.E agency down there and have a good name. Bear in mind that lots of places in that valley have spectacular views. One of my houses is up on the hill there and has spectacular views, and that is a good thing. What is the block size? Is it eventually sub dividable? That could be something to think about. In that area I think the minimum is 650sq meters.
P.S I get $250 and $230 respectively for my 1960's three bedroom standard houses (although just renovated one this year and it will go closer to $270 in January.
I will give Elders and Pertrusmas a call and find out tomorrow.The block size on this property is 667m2 (whew) just made it to the sub dividable limit. This property was built in 2003.
Thanks again.
Futzynicknovember wrote:I use Elders Brown and Banks. I've had up and down experience with them, but we seem to be in a good space now. I find their accounting pretty good and their inspection cycle pretty ok. I have heard that "The Rental Centre" which is an offshoot of Petrusmas (or at least used to be) is pretty good. Petrusmas is like the biggest R.E agency down there and have a good name. Bear in mind that lots of places in that valley have spectacular views. One of my houses is up on the hill there and has spectacular views, and that is a good thing. What is the block size? Is it eventually sub dividable? That could be something to think about. In that area I think the minimum is 650sq meters.Hi Futzy
I'm a bit unsure of your reason for this "investment".
I know nothing of investing in Tasmania. But I do know a bit about investing.
There are two common reasons to "invest".
1. To achieve a capital gain.
2. For positive cashflow.
3. (Which is dubious in my opinion) to make a loss, ie to negatively gear and thus pay less tax.From the info of others above,
1. May not happen in your 4 year time frame (ie only a HOPE that it will increase over your entry costs (stamp duty and legals). Maybe you are a first home buyer, which saves the stamp duty. But then you have to live in the house for at least 6 months in the first year of ownership. Any price rise still speculative.
2. The above info assures me that you will not have a positive or even neutral cash flow.
3. You will negatively gear!If you plan to live in this house, you will confuse the issue on selling it, as you will have to pay capital gains tax if it is an investment. If you plan to negatively gear it in the short term, that means you WILL have to pay CGT on at least a percentage of the (hoped for) profit.
On the other hand, if you sell in about 4 years and don't make any money, or lose it, then you can't call it an investment. The description in this case of your property in a liability. And an Investor should never buy on emotions, just on clod hard numbers.
If you are able to sub divide, this may be a good strategy. But check with the council FIRST! ie before buying!
If not too late.
Sorry to be negative, but just trying to help you see the range of possibilities!
Quickchick.
Futzy,
If you purchase the Oct 08 edition of Australian Property Investing magazine on page 118 there is very detailed information on every suburb in Tassie ie grothe last 10 years, grothe last one year, number of properties sold last year, the median selling price.
For the sake of 7-8 dollers you will get a very good look at how all the Tassie suburbs have been performing.
Over the last year things seem very good down there,however some spots have not performed as well as others.
So bite the bullet & buy the book, you wont be disapointedGood Luck
I use Roberts Real estate here is the link
http://www.robertsre.com.au/glenorchy/
they are the the biggest R.E agency down there all the state of tasmaniaHello Quckchick, thank you for your valuable comments. I do agree with you, I got side tracked with my investment objectives.
However, I have strengthend my goals now and this property I am looking at is for purely investment only and hopefully capital growth over X number of years.My intention on this property I am looking at is not to do any more modifications as it is a 2003 house. There are minor cosmetic work that need to be done in terms of completing the landscaping and eventually putting up a garage.
The property vendors are in a financial stress and couldnt complete the finishing touches. One of the reasons why the vendors are having to sell quite below what they expected.Take care
Futzyquickchick wrote:Hi FutzyI'm a bit unsure of your reason for this "investment".
I know nothing of investing in Tasmania. But I do know a bit about investing.
There are two common reasons to "invest".
1. To achieve a capital gain.
2. For positive cashflow.
3. (Which is dubious in my opinion) to make a loss, ie to negatively gear and thus pay less tax.From the info of others above,
1. May not happen in your 4 year time frame (ie only a HOPE that it will increase over your entry costs (stamp duty and legals). Maybe you are a first home buyer, which saves the stamp duty. But then you have to live in the house for at least 6 months in the first year of ownership. Any price rise still speculative.
2. The above info assures me that you will not have a positive or even neutral cash flow.
3. You will negatively gear!If you plan to live in this house, you will confuse the issue on selling it, as you will have to pay capital gains tax if it is an investment. If you plan to negatively gear it in the short term, that means you WILL have to pay CGT on at least a percentage of the (hoped for) profit.
On the other hand, if you sell in about 4 years and don't make any money, or lose it, then you can't call it an investment. The description in this case of your property in a liability. And an Investor should never buy on emotions, just on clod hard numbers.
If you are able to sub divide, this may be a good strategy. But check with the council FIRST! ie before buying!
If not too late.
Sorry to be negative, but just trying to help you see the range of possibilities!
Quickchick.
This is a good tip Trustieone. Thanks heaps for the suggestion.
Anuptrustieone wrote:Futzy,
If you purchase the Oct 08 edition of Australian Property Investing magazine on page 118 there is very detailed information on every suburb in Tassie ie grothe last 10 years, grothe last one year, number of properties sold last year, the median selling price.
For the sake of 7-8 dollers you will get a very good look at how all the Tassie suburbs have been performing.
Over the last year things seem very good down there,however some spots have not performed as well as others.
So bite the bullet & buy the book, you wont be disapointedGood Luck
Hello Mauricio, thanks for the recommendation.
Can I also ask about people's experience in using the same agency as the property was purchased with? Most of the agents have a sales side and a property management side. Would it be a good thing to have the property managers from the same company mange the investment property?
mauricio wrote:I use Roberts Real estate here is the link
http://www.robertsre.com.au/glenorchy/
they are the the biggest R.E agency down there all the state of tasmaniaHello all, this is the property I am wanting to purchase. I had a look at this property and I am very impressed with the design and views. The landscaping needs completion and also a carport or garage, which I will rennovate when I get some money freed up.
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=105033207&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=39062653&s=tas&tm=1225842032The house isn't really that big inside and is quite comfortable and not too hard to maintain. The rooms are of decent size and very good quality fittings. This house is not kid safe. The slope outside is quite steep.
Would I be able to fetch rent for atleast 400 per week with this property?
Did you buy this in the end? It seems to have sold in early DEC 08
So was just curious how you went with it?DanielB wrote:Did you buy this in the end? It seems to have sold in early DEC 08 So was just curious how you went with it?Hello Daniel, I did buy this property in the end. Am quite happy I did go ahead with this. The recommendations from this thread's posts by various people were fantastic.
The place has awesome views. Well done with the purchase!
What was the purchase price?
So was just curious how you went with it?
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