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Investors set Hobart’s property prices on fire!
After years of little growth, Hobart is experiencing high levels of demand from both local and overseas renters and buyers, it’s an investors dream.
Investors find value in Hobart
Hobart continues its reign as Australia’s most affordable capital, displaying strong growth prospects.
“It has emerged as a strong performer in recent CoreLogic reports, recording a 5.8% increase in year on-year dwelling values as of the end of May,” says Kellee Pennicott, C.E.O. of Baxton Property Management, Australia’s premier property management company.
“The combination of high-quality living and affordability make it an appealing investment location, and we have investors increasingly moving into the Hobart market.”
Pennicott suggests that tenant demand in the Greater Hobart region is quite high creating a prime opportunity for investors, “low vacancy rates together with increasing rental yields has created value in the marketplace the likes we have not seen in almost 20 years.”
REA Group chief economist Nerida Conisbee agrees that tenant demand in the region is quite high.
“It’s the most affordable capital in Aussie, and there’s lots of interstate demand. There’s also lots of offshore interest from Chinese investors. However, be careful because it’s small and does not seem to experience new development.”
Conisbee believes that one way to support price growth in this area would be to create projects that provide employment opportunities.
Investors Choice Mortgages director Jane Slack-Smith says local industry closures could negatively impact the state’s economy. Nonetheless, there is still much underlying growth in the area.
“Hobart is a lifestyle choice; property prices are very affordable and their biggest export is their youth. For some investors, the 5% per annum rental returns are hard to resist, especially at a median house value of $415,000,” she says.
“A savvy super planner may even find this capital city a great investment for their super fund and a long-term tree change for themselves. As with any city market, there are always pockets of potential – you just need to search them out.”
Reno work brings new life
With the growing need for housing, many homeowners are renovating and selling outdated dwellings. While some ‘flip’ properties, others simply put them on the market as is but highlight the renovation potential for prospective buyers.
“We are seeing a split between owner-occupiers and investors. Investors do seem to be on the increase and there is a strong possibility [they] will dominate the market, especially with the increase in property prices throughout mainland Australia, which could drive investors to Tasmania,” reports Herron Todd White in its Month in Review for June 2017.
“We are also seeing that rising prices and strong demand for property has home owners worried about being priced out of the market, therefore they are opting to renovate.”
HUONVILLE: The suburb to watch
Situated right on the banks of the Huon River, the small suburb of Huonville has a thriving house market.
It is regarded as one of the top fruit producers in the state, and foodies are drawn to its food-centred attractions and culture, since Huonville has a long history of apple growing. The suburb is also known for fishing, boating, walks on the beach, as well as for being the last town travellers can stop in at before hitting the south of Tasmania.
The average yield is high, at 5%, while the median house price just passes the $300,000 mark. The rising tourism and forestry industries also provide employment opportunities.
Servicing the investment property market
As a Boutique Property Management Firm, Baxton is able to assist investment property owners either by managing their properties, or by selling their properties through their unique investment channel, should they wish to do so. It has a worldwide database of investor clients looking for properties in the Greater Hobart region. For more information checkout their website.
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We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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