What do people think of buying in Tasmania where prices are relatively low ( but so is the rent)?
Hi Stingray – I wouldn’t say that the prices are all that low (comparably) in Tasmania any longer. Most areas have almost doubled in price, forcing rental yields down to around 5% on average if you purchased now.
Rent has traditionally been much higher in Tasmania – it has tended to increase steadily but capital growth has been slow or non existent. In the past two years this has all changed, and capital growth has been enormous no matter how bad the area, but rental growth has stopped.
Like any area in the world, do your homework. If an area (or state in this case) seems cheap, it’s all relative. Buying a house for $100k doesn’t automatically make it a bargain or a great investment.
Good luck
Nick
G’day all,
Eighteen months ago I read the book “Ordinary Millionaires” by Jim McKnight(not another one! More of the family?).
In one of the storeys, this fellow bought dud properties in Adelaide’s suburb of Elizabeth. Bought cheap, rented out at very good +pos.yields.When the banks refused more loans he found a private investor who loaned him all the money he required.
In 2002 his properties were worth seven million dollars.
If “we” take this example and try to do the same today,
in Hobart,(or where ever), we would be buying “up” suburbs like Rokerby or Gagebrook. That’s if these are the worst areas in Hobart.
Now this is where you have to be brave(stupid)and start buying “up” these houses. Who’s going to step “up” and do the honours first?bbruham
When will I earn as much as I spend?
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