If you’re a budding property tycoon, a potential rentvester or someone wanting to boost your existing property portfolio – then this is for you. Extending your search list and including among your many options the small island state south of the Australian mainland, Tasmania, may provide you a longer yet stronger list of investment opportunities to choose from to building a solid diverse portfolio.
So where can we start looking in Tasmania?
Hobart, which is the capital city is one great location where you can start. The units in proximity to the University of Tasmania (UTAS) are normally the popular options here, whereas family houses in the northern suburbs are considered positive and reliable investments.
As you go further up North, Launceston, which is Tasmania’s 2nd city also has great potentials, especially for those starting to invest. Note that there is another UTAS campus here in this city, so student residences and accommodations in suburbs like Mowbray, Invermay and Newnham make good investment options.
The side of the northwest coast, on the other hand, is equally promising too, as the real estate properties here are more affordable.
Overall, the resilient rental market makes it a smart choice for investing in this state.
What are the TYPES of Investment Properties you can find in Tasmania?
Property with Positive Cashflow
A property with positive cashflow denotes that the rental income from the property investment is higher versus the running costs of holding the property, such as maintenance costs and home loan. This means the property surely gains a profitable rental yield, so this is good.
Property that is Negatively Geared
Nearly the opposite in meaning of positive cashflow – the rental income is lower than the running costs of holding the property, thus, you’re operating at a loss. Nonetheless, there are some benefits you can avail of like tax deductions, making this a popular option for any investor wanting to make the most of capital gains.
For owners of properties that are negatively geared – it is a fact that they run their property for what is a loss in the short term, however, there’s nothing to worry since this is relieved by some tax gains, while waiting for that promising long term gain.
There’s no better time than now If you’re mulling over property investing in Tasmania. The best way is to find the right property for you backed up with a thorough and comprehensive research.
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Helpful Tips when Investing in Tasmania
Cooling-Off Period is not applicable
In Hobart and the whole of Tasmania – the cooling-off period is not applicable unlike in the other cities of Australia particularly Victoria and South Australia. When you enter into an agreement or contract and terms are unconditional, there is no option for a cool off period. Cooling-off is an important option in this country. Therefore, it is highly recommended that you consult some good legal advice before signing a contract agreement in Tasmania.
There is no Vendor’s Statement
In Hobart, there are no requirements, such as: The Form 1 in SA, the Disclosure or Vendor Statement in Queensland and the Section 32 in Victoria. All these documents show the rates and title, even the agreements and other important information required when undertaking a due diligence before buying a property. Because neither of these is applicable in Hobart – expect that you will have to do some hard work to collect and gather the information yourself. Most likely you will need to reach out to some local experts to get the data you’re after. Thus, this is really not for buyers who are hesitant or apprehensive. It will really help that you do your due diligence seriously when investing in Hobart.
Property Type should be considered
What’s striking about Hobart – there are water views all-around. And they are just gorgeous beautiful views! It’s a fact that water views place a high premium for properties in Sydney, Melbourne, Perth and Adelaide. But not in Hobart.
If you have a soft spot for properties with water views, don’t be surprised that Hobart’s locals are just brushing them aside, as there are numerous properties with views of the ocean and the Derwent. So, when you’re online doing research – keep in mind that even if a property presents water views, it doesn’t automatically mean that it necessitates an exceptional price.
Work properly with Sales Transactions
It’s great to know that most of the sales in Tasmania are being done through private treaty. This is the norm!
Which means, in the negotiation period, there are several options that you can pursue, like making it subject to building and pest approval, perhaps subject to finance or even to the sale of an additional property. Pursue whichever way you think is right and reasonable while in the process of negotiating. As they don’t have a vendor statement, you might want to negotiate to make it subject to undertaking due diligence. Remember, terms are unconditional once you sign the contract so it is important that you work out the property immediately if you must, so you can make sure it is not sold while you are doing your due diligence.
It is important to take note of these things when you’re trying to get in the Hobart property market.
TENANTS: What are their Expectations?
If there is one thing you need to have at Queensland, it is an air conditioner. Conversely, the opposite is true for Hobart where it’s a requirement for you to have an ADEQUATE amount of heating. So, when you’re doing your property research, remember that top of mind should always be HEATING.
And if the property you find may not have adequate heating, just make sure to have some extra funds or provision ready in place to cover for it. As it really gets so chilly down that side so all tenants will generally REQUIRE it.
Where is the best place to buy a property in Tasmania? What are the best suburbs to invest in? Where can you buy property for below $400,000? These are the most common questions property investors ask and it involves a lot of time researching to find the answer.
The good news is, we’ve already done the hard work for you. Within seconds, you’ll be able to identify which suburbs in Tasmania are best for you based on your financial situation.
By just filtering and sorting, you’ll be able to identify which suburbs in Tasmania have a median price that will suit the amount you’re willing to invest, especially the suburbs with a median of $300k and below
- Have a median price that will suit the amount you’re willing to invest, especially the suburbs with a median of $400k and below
- Have More than 5% Annual Capital Growth
- Have More than 5% Rental Yield
- Have Less than 3% Vacancy Rate
It is the most comprehensive investment location report of all suburbs in Australia – with linked state, suburb, postcode, median property value, median rent, gross rental yield, vacancy rate, population, gross weekly income, median monthly mortgage repayments and more. It’s perfect for property investors, buyer’s agents, real estate agents, property managers, mortgage brokers, valuers, and even property developers.
Once you’ve identified which suburbs in Tasmania are the best for property investment, make sure to do your due diligence and check if the numbers stack up.
The most simple and easy to use tool to calculate Rental Yield. It gives you a quick way to compare returns on different investment properties (or investments). It’s a Rental Yield Calculator, Mortgage or Homeloan Calculator, Cashflow Calculator, Purchase Cost Calculator, and it also calculates the Forecasted Property Value by Capital Growth. It’s perfect for property investors, buyer’s agent, and real estate agents.
