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The month in review: Hobart
By Herron Todd White
July, 2009
Investing $500,000 into the local residential market in
Hobart today gives a range of options. $500,000 gets a
good quality home in close proximity to the CBD or a new
home with all the bells and whistles and spare change in
the urban mortgage belt suburbs.
Investing the whole amount is a no brainer: go to the CBD
or close inner city suburbs. These have traditionally been
the stronger areas to invest in suburbs such as Battery
Point and Sandy Bay will only get a modest to average
sized and quality dwelling for the investment, but a
prestige locale. Other suburbs such as North Hobart,
West Hobart, New Town, Glebe and South Hobart all offer
close inner city convenience and this price bracket lends
itself to plenty of choices. A reasonable dwelling or unit is
definitely on offer here.
Properties close to the University of Tasmania can still be
purchased for sub $500,000 and the rental returns are
quite impressive. However, once you move out of the
CBD and fringe areas, that return will be moderate and
capital growth it would appear would be best described
as minimal or static in the short term.
Then on the flip side is the question: Could I purchase
two or several properties for this money? The answer, of
course, is yes. Instead of placing all of your so called eggs
in one basket, an entry level, older style suburban home
can be purchased for low to mid $200,000. These offer
average returns but still the possibility of future growth
and the amenity of being still within 10 to 15 minutes
drive of the CBD and in close proximity to local services
and facilities.
If you wanted to drive 30 to 45 minutes to the CBD
then entry level homes can be purchased in the mid to
high $100,000 category. You could possibly buy three
properties for $500,000 in the townships such as Dodges
Ferry, Carlton or Primrose Sands, however rental returns
are only fair, as is capital growth.
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