The thing I like about Tasmania or Tassie as it is affectionately known, is it’s fresh air and friendly people, not that you can’t get any in mainland Australia. However, if you have ever lived in Sydney, you will find that Hobart offers many similar experiences ~ a harbour city, Salamanca markets not unlike the weekend markets at the Rocks , the Hobart fish market, the Tasman bridge to remind you of THE harbour bridge and the Cascade beer brewery to rival any of Sydney’s best. However, there is something about Hobart that Sydney can never match ~ as a visitor to beautiful Hobart, you will get to know its CBD and surrounding suburbs intimately within 15 minutes of studying the local map.
What I like about this property and West Hobart:
1. West Hobart’s location is very strategic ~ Property is literally 1.5km from Hobart CBD or 10 minute walk. It is located in the heart of West Hobart which is on a hill. The top floor outdoor deck looks east into the city with harbour views. West Hobart is an affluent suburb popular very close to the CBD.
2. Architecturally designed landed property.
3. Large proportion of young professionals and renters in West Hobart*
4. No strata levies, total outgoings (water and council rates) are relatively low at $1,880 per year.
1. Unusual floor plan and open concept may not be practical for families.
2. Although master bedroom is on the top level, it does not have an ensuite.
3. Heating may be an issue for the lower levels in winter due to open plan and heat escaping to high loft areas.
4. The bedrooms are open plan (ie without doors) and privacy and noise control (eg sound of TV and stereo from living may be audible from the bedrooms). Watching TV and listening to music with headphones may be a satisfactory solution for certain people.
5. Laundry facilities and storage may be limited.
6. Kitchen storage and fridge space may be limited.
7. Rental history ~ This property was built circa 1996 has never been rented before.
8. No Sydney Opera House? I thought you would never ask and besides, it’s not relevant here.
1. Initial asking price was $430k and I believe it to be a good buy in the high $300k’s to low $400k’s. The average house price in the suburb of West Hobart is $415,000**.
2. I estimate rental for this property to be between $370 – $420 per week. This estimate is based on comparison with similar properties in the suburb only. (Note: Research was not conducted on similar properties within neighbouring suburb).
3. The average rental for houses in West Hobart is $350 per week and 4.4% yield per annum**.
4. Capital growth for West Hobart is 12.66% per year**.
Great location and good buy at around the $400k mark. Be prepared to spend extra on rectifying practical living issues.
* Your Investment Property June 2009
** Your Investment Property July 2009