Hi all,
So i have moved from Sydney to Tasmania Hobart. The houses here are unbelievably cheap compared to Sydney. So i am looking at to invest. Heres my situation:
I have approx $45k deposit, earn $600 – $700 per week net.
I have a couple of things in mind that i want to do but cant make up my mind just yet.– First: I looked at buying a cheap house, renovate it and get an extra room or two and rent it out by the room. Looking at around Glenorchy area as houses are around $200k.
– Second: Buy a cheap unit for around $100k in Rokeby and rent it out. There are a few 1x bdrm units selling for $98k and renting for $150 per week. Minus all the outgoings, its about $125pw net.
– Third: Purchase a land in either Howrah or Glenorchy for around $100k, build a new house ($130k roughly) and sell it after completion. Looking to make around $50k profit.
Then i also saw some ridiculous cheap properties in Queenstown for $80k 2xbdrm unit renting at early $100's per week.So i am little confused of where to start.
Any suggestions? Cons and Pros?
What would you guys do in my position?
Hi Katsudon
Welcome to the forum.
With the $100k unit – the high rent seems nice but make sure you scope out the body corp fees and factor in all the other costs associated with owning the property such as rates, maintenance, insurance, property managements fees, etc.
The build and sell option can sound appealing but have you factored in CGT in your profits?
Also, don't forget – cheap doesn't mean good (that's not taking anything away from Tassie – just a general comment).
I don't want to sound negative but these are important things to factor in.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
katsudon98 wrote:Hi all,So i have moved from Sydney to Tasmania Hobart. The houses here are unbelievably cheap compared to Sydney. So i am looking at to invest. Heres my situation:
I have approx $45k deposit, earn $600 – $700 per week net.
I have a couple of things in mind that i want to do but cant make up my mind just yet.– First: I looked at buying a cheap house, renovate it and get an extra room or two and rent it out by the room. Looking at around Glenorchy area as houses are around $200k.
– Second: Buy a cheap unit for around $100k in Rokeby and rent it out. There are a few 1x bdrm units selling for $98k and renting for $150 per week. Minus all the outgoings, its about $125pw net.
– Third: Purchase a land in either Howrah or Glenorchy for around $100k, build a new house ($130k roughly) and sell it after completion. Looking to make around $50k profit.
Then i also saw some ridiculous cheap properties in Queenstown for $80k 2xbdrm unit renting at early $100's per week.So i am little confused of where to start.
Any suggestions? Cons and Pros?
What would you guys do in my position?
Hi Katsudon,
I’m going to play devils advocate if I may for a minute. Are you sure Tasmania is the smart place to be putting your money at the moment?
I’m just not sure whether the economic fundamentals along with demographic shifts are supportive of an investment in property in Tasmania at the moment.
At the present time there is some huge money being spent on infrastructure in other states around the country along with other positive shifts and taking a closer look at some of these might be beneficial.
I don’t want to confuse or change your mind but sometimes it’s beneficial to look at the alternative options.
Best of luck.
In particular with the Rokeby unit, council and water are $1000 per year, body Corp $317 per year. This adds up to $25 pw. Minus management fee of 6 % = $9 pw. Give ortake it’s $100pw net rent.
Risk isn’t much as it’s so cheap the priceI’ve just many things abt rokeby.. How it’s not a good place with low Eco socio population there. Hence I know the capital growth in that area ain’t gonna be high. Rental market …. I’m not 100% certain how it is there though. It’s suss cos there are a couple of similar units selling on the same street/block
Hi Katsudon,
Im in the exact same position as you, I moved down from Sydney 6 months ago and im looking in the same areas as you, I own one of the units in the Block you are looking at, Ive got a couple of offers in at the moment on some others in the areas your looking, I tried to private msg you but you have to activate it on your profile or email me at [email protected]
to answer your questions, I wouldnt look to flip or build and sell the market is very very flat at the moment and a couple of agents I know agree when I say its going to get worse before it gets better down here so I wouldnt be investing for capital growth in the short and medium term, but the market is exellent for cashflow generated from high rental yields especially in the outter suburbs
email if you wanna chat
Hey Ben,
I just emailed you. Seems that the Tasmania market is slow at the moment. Maybe wiser to aim for a high rental return property rather than aiming for short term gaining capital growth….
Just a mater of choosing suburbs.
What are your thoughts on Queenstown?? You can purchase a 2 bdrm house for under a $100k!
Hi katsudon,
If you've moved to Tassieyou have to live somehwere, so it makes sense to buy. But like anywhere, if investing, you will need to look med-long term and buy carefully at the moment. There is always good deals to be had, but great deals are less common. As far as Queenstown goes, I cannot see any value in buying an investment property there – it has had it's time for the moment, and while there are some dear old character house there, there are also some absolute dungers. If you go for a drive out that way, you;ll get the gist. Make sure you take a flannelette shirt and fingerless gloves too (that was a bit nasty of me!) Around 4 years ago there was some growth, but not much going on at the moment.
All the best!Cheers
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