If you own one or more investment properties in Hobart, or are considering buying one, you’ll be interested in the returns your investment can generate. We look at the recent trends and there’s no doubt about it: returns from rental properties in Hobart are still on the rise. Let’s take a look at the history and the direction rental income is taking at the moment.
2015: Hobart’s Robust Rentals Market Makes Waves
Back in 2015, The Mercury reported on the strength of Hobart’s rental market, tagging it as one of the strongest in Australia. At the time, Hobart enjoyed rental yields that made analysts sit up and take note. They attributed this trend to Hobart’s affordability and the wonderful lifestyle that Hobart has to offer.
Rentals were on the rise throughout Tasmania, while other states were experiencing a dip in rental returns. Meanwhile, property values were rising, and capital gains were increasing along with them. Best of all, it wasn’t a sudden spike that could indicate some kind of a bubble. The growth was steady, strong and sustained.
2017: Has Hobart moved From Cheap to Luxe?
The lower-cost reputation of Hobart living was no longer what it used to be. In fact, substantial increases in rental prices had taken place, leaving some lower-income tenants looking for new places to stay. By 2017, houses previously used as Airbnbs were transferring their focus to longer-term rentals for better returns. What happened?
Essentially, we’re looking at the law of supply and demand in action. A flood of people from the mainland looking to get a piece of Hobart living meant that finding a rental property in Hobart wasn’t so easy any more. When there is scarcity, prices rise, and that’s just what happened in Hobart.
The president of the Real Estate Institute of Tasmania noted that there was a shortage of houses for sale and to rent in Hobart, and to date, this is where we currently stand. Properties to rent have waiting lists, rents are higher than ever, and returns are better than ever.
What Does This Mean for Property Owners?
Hobart has proved its worth as an investment property destination. Those who entered the market early are realizing excellent returns and the trend doesn’t seem likely to lose momentum any time soon. Is it time to sell up? With further growth likely to be in store, we would suggest that it’s worth waiting and cashing in on your investment in the form of rental income.
You certainly won’t struggle to find good tenants, and you can afford to be very picky about who you rent your house to. With Baxton Property Management to help you screen tenants and maintain your property in good order, you hardly need to lift a finger in return for a steady income stream.
Will property values continue to rise? It seems very likely indeed. Late entrants may not realize the gains that earlier ones did, but with demand high and supply low, it should just be a matter of time before you see very satisfactory growth in the value of your investment. Meanwhile, the rental income you stand to realize will be well worth your while.
Baxton Property Management deals with the practicalities of owning a rental property while you get on with business as usual. Talk to us if you’d like to know more about the potential returns from rental properties in Hobart, what you can expect, and what we do to make it all easy for you.
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