[TomTMember@tomtJoin Date: 2002Post Count: 3]

June 4, 2003 - 11:45 am

Hi steve,[]
Tom T from some of your earlier sessions.
what you said is correct, they obviously did not appreciate how difficult it can be sometimes when you set out to buy a property.

AS an example i have just posted an item on the site about Hamiltion Island properties for sale which at first site seem like a great return and long term investment. The reality is that once you have analysied the deal and looked at all the real costs and returns plus the downsides, the deal becomes very ordinary and not worth it.
the only person making out in the deal is the vendor.
as you pointed out on various occassions it is all in the deal and the negotiations as to what you get in the deal and how good that becomes
the harder you push and the more creative you are the better the deal and the better the cash at the end
nice to read and speak to you all again
regards
Tom T

[TomTMember@tomtJoin Date: 2002Post Count: 3]

June 4, 2003 - 11:20 am

read your article, with interst,
I renovated a large number of properties in Hobart in 1990-1995.
had them revalued up from purchase price.
however from the valuations in 1992 on a block of three, the value went down from 120,000 to 105,000. They have now gone up to 120,000 – 130,000. not a good return for nearly 10 years
its nice however to see this increase but dont expect it to last or stay for long
In addition the rent started at $150 per week in 1992 then went down in 1995 – 1998 to $140 per week.
at the present time they are around $160 per week and the properties are in North Hobart one of the better inner city areas.
YOU CAN EXPECT THE MARKET to fall back .
Timing is the thing, and duration
dont forget that the Tasmainians are paid LESS than mainlanders so rents will always be less

I am still in the process of settling property from my family seperation and will be selling out once that is finalised to buy on the mainland

if any one wishes further infor they can email me

thanks all
Tom

[TomTMember@tomtJoin Date: 2002Post Count: 3]

August 14, 2002 - 12:56 pm

Dear Josh,
let me make a couple of comments about the Hobart market.
1.the only areas in Hobart experiencing growth are Battery Point, Sand Bay, and the areas immediately around the University.
2. None of the other suburbs of Hobart have experienced much growth besides the above mentioned.
I own/or part own with my ex wife ( still working out the property settlement) several properties which I renovated in 1992. the properties rose in value after the renovations and were valued in 1994 after which the economy stagnated in Hobart, and in fact the properties fell back in value. I have just had the properties revalued and they are at exactly the same value as what they were in 1992. Yes they have risen in value by about 15% over the last 18months but that has only brought them back into line from where they started.
Properties outside of Hobart do not rise unless you value add to them, in which case they increase by about the amount you invest into them via sweat and money.
Capital gain is rarely seen like on the mainland.
3. You have made no mention of Body Corporate fees and charges which are normally made on a quarterly basis.
4. Insurance and maintenance should be about $500 minimum for maintenance and approx $160 for insurance.
5. You mentioned it was 8 minutes from the Hobart CBD, what suburb??
location is critical for rentability in Hobart.
Just to let you know, I have rented conjoined 2 bedroom 1890 vintage single storey terrace houses in North Hobart for $160 a week in 1992 up until 1997 when the rents fell and we could only get $140 week.
The location was on the border with the CBD.
in Hobart location is of prime importance.
If you can find a property within walking distance of the University grab it with open arms and rent it to the university