Hi All,
First time poster and also first time investing, I have been looking for property around tasmania that has a high return and low purchase price. I am sure there are better markets to buy into bu I feel that tassie will become a very attractive market as the other capitals become more expensive. there are a lot of asian tourists visiting every year and many decide to call tassie home driving up market value and bringing in investment $$$.
my criteria was
no body corporate fees
own land
reasonable proximity to the city and the possibility of the suburb becoming desrable over the next 10 years.the 2 suburbs I came up with were Risdonvale and Rokeby. both are lower socio economic suburbs with a high rental demand, low house prices and good returns. both have plenty in this range.
I wanted to steer clear of gagebrook, clarendon vale and heardsmans cove. just too nasty and cant see it improving anytime soon.
I suppose I would like any isnight into these two as to wich has a lower crime rate, wich is likley to have better development and growth potential.
I am leaning towards Rokeby if I can but a property with water views for that price expecially if the block is large enough to subdevide in the long term.
Looking at keeping as a long term investment and adding other properties with the same criteria when I have enough capital to do so.
any advice would be greatly appreciated!
Just thought I would follow up and add my own input for those that are interested in the area.
I checked out both suburbs on the weekend and found the following.
1, form visual inspection Risdon Vale is an older suburb and really is a low income area, not mixed at all. 100% low income and it shows. burnout marks all over the road, broken cars cant see any growth potential at all. there is a new estate bing built right next door but it will be 15+ years before this area is desireable.
1, Rokeby seems to be a bad suburb that is starting to change. later houses that are better quality and seems to be a mix of people living there. still has its risks and a slightly lower yeild but its still possible to buy a 3bdr and get a 8% yeild.
I think there are better much better, lower risk options in Tassie getting those sort of yields and agree with your points in your follow up email.
You mention the Asian tourists (I’m guessing seasonal workers) who are on a visa – up to 2 years and then they are required to return home unless they have a work sponsor. I don’t expect they’ll have a huge influence on our market….I could stand to be corrected.
I agree with your suggestion of multiple profit options re the development potential in buying a house now that ticks the boxes for future development. Make sure the future development options are real and not just a maybe because maybes often don’t eventuate.
Finally, I don’t really like the idea of being in a body corporate either however we do have some units where being in a group has actually reduced the costs of ownership so we get to keep more of the 8% gross yield than we would if it was a free-standing house.
I’d be interested to know what you decide to do and why :-)
Tracey
Thanks Tracey,
really glad to get your insight.
I have just purchased a property there with water and hill views on a 700m block with a tidy 3bdr house, yield will be 11% gross, tenants are already organized.
I looked at a lot of areas in TAS and see good development potential in the area but even if it only appreciates relative to inflation for the next few years its positively geared from purchase to the tune of 2.5k a year.
My strategy is to gain enough capital in simple CF+ purchases over the next few years and then start value adding by buying 2bdr’s and adding a 2nd bathroom and 3rd bedroom.
then later buying and sub dividing.
probably 15 years till I get this far but i need to start now.
I woke up one morning 6 months ago, realized i am in my late 30’s and retirement without funds is a very real and frightening prospect. biggest problem now is debt serviceability. single income family learning to live within means and stop trying to keep up with the silly pressures consumerism drives us all to.
Cheers!
Very well done for taking control of your retirement now. Certainly sounds like you have a clear plan and are on your way.
Must be something about the late 30’s as that’s also when we really got moving.
I’d be interested to hear how it all goes for you.
Cheers.
Just wanted to offer an upate on this for anyone else that is interested in cf+ investments with a low buy in price.
Rokeby appears to have started moving over the last quarter and has picked up 8%. properties for sale are changing hands quickly with very low levels of discounting, tennant demand is high enough to ensure occupancy within a few weeks and crime rates are going down.
There is a development that is scheduled to go ahead called parahnville next door that has been backed by a lot of asian investors and will include a language school, sporting grounds and 800+ dwellings.
I bought a second property in Rokeby last month and had it tennented by settlement, the buyers agent I have been dealing with said a lot of investors were moving their capital gain from Sydney and Melbourne and turning it into cf+ investments in these areas and it looks like the trend will continue over the next 12 months.
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