Australian Real Estate: The Next Bubble ?

[D&D]

Originally Posted by Get-a-Life

If the intent is to fund a cruising then the important financial consideration is "cash flow" not "capital gain."

Well said Ken! Too often these days we (our media especailly) become pre-occupied with capital gain whereas for funding cruising (or really any other lifestyle choice) it will be cash flow that determines 'comfort'.

So Ken, are you saying there's 10% gross rental yield available around Hobart?

[beau]

A couple of my friends sold up in Queensland and moved to Tasmania a couple of years ago, because it was cheap (then)
Recently i was in Tasmania myself and I had a look around but I didn't find anything "cheap" I think the market value has now caught up to the mainland.
Timing is everything.

[D&D]

Originally Posted by beau

I think the market value has now caught up to the mainland.

Tassie definitely went through a 'catchup' phase in capital values after a long spell of inactivity on that front. No idea here where Tassie stands now on values -- It tends to be a 'long time between drinks' for capital growth in Tassie -- but very interested to hear whether there are available today the sorts rental yields Ken suggested as these may indeed present opportunities to support more cruising!

[cat man do]

Originally Posted by D&D

So Ken, are you saying there's 10% gross rental yield available around Hobart?

No I don't think so
Hobart is a city and Ken said country

In a lot of country areas in Australia you can still buy a property for around $100,000 and rent it for $130+ p/w that gives a good return of over 10% on your investment and a steady income while cruising.

[beau]

The trouble with Tassie is there are not a lot of jobs, and people can't pay rent if they don't have jobs.
Plus the "greens" are having more say, so there go the jobs.
They like it all pristine with no development. (back to nature, sort of thing)

On my visit I liked its sort of "old fashioned feel" but it is far to cold for me. Its a bit like Canada, if you don't have a job and can't afford Heat you die.

[Weyalan]

Originally Posted by beau

The trouble with Tassie is there are not a lot of jobs, and people can't pay rent if they don't have jobs.
Plus the "greens" are having more say, so there go the jobs.
They like it all pristine with no development. (back to nature, sort of thing)

On my visit I liked its sort of "old fashioned feel" but it is far to cold for me. Its a bit like Canada, if you don't have a job and can't afford Heat you die.

Don't let the truth get in the way fo a good story, there, fellah. I think you will find that the official government statistics would put the rate of unemployment in Tasmania within a few tenths of a percent of any other state (or territory) in Australia (see link below for reference). Tasmania was (May 2010) at 6%, Queensland at 5.5, Victoria 5.4.... sure its higher, but the sky is hardly falling in

Furthermore, even though it is the middle of winter here,
a) I have not yet turned on a heater at home this winter (well insulated, double glazed house(
b) I am picking lemons, limes and oranges from the trees in the garden

Sure, its colder than a lot of other places in Australia, but steady on with the exaggeration.

I arrived here in Tasmania 15 years ago with almost no money, no job, a backpack and a tent. Tasmania has given me all the opportunities I needed. Like almost anywhere in this great country, if you are prepared to have a decent go, you will do okay.

N.B. Link for emplyment data http://www.dtf.wa.gov.au/cms/uploade...e_may_2010.pdf

[D&D]

Originally Posted by Weyalan

Like almost anywhere in this great country, if you are prepared to have a decent go, you will do okay.

Hear! Hear! Well said Weyalan.

Spent a year in Tassie quite a few years back (working and studying) and absolutely loved it. Been back a few times and loved every visit too. Very proud to call a couple of Taswegians (!) amoungst a very small group of dearest friends.

[beau]

I am very pleased to hear it, I loved the place, good food and friendly people. Just not sure about the cold.
I grew up in Cairns.

[VirtualVagabond]

Originally Posted by D&D

Hear! Hear! Well said Weyalan.

Spent a year in Tassie quite a few years back (working and studying) and absolutely loved it. Been back a few times and loved every visit too. Very proud to call a couple of Taswegians (!) amoungst a very small group of dearest friends.

I believe the correct term is... Tasmaniacs (sorry, couldn't resist that one)

Great part of the world though... very special.

[Weyalan]

Originally Posted by beau

I am very pleased to hear it, I loved the place, good food and friendly people. Just not sure about the cold.
I grew up in Cairns.

You grew up in Cairns, I grew up in Scotland. That would explain why I think its hot, but you think its cold!

[beau]

Do you have Scottish mist in Tasmania. or what do they call it in Tasmania.
Do the locals really have two heads? They were selling two headed tasmanian devil toys when I was there.

[D&D]

Originally Posted by Weyalan

You grew up in Cairns, I grew up in Scotland. That would explain why I think its hot, but you think its cold!

I grew up in Wisconsin (4 months a year where the temp rarely nips above freezing and in winter you can drive a truck across lakes 5 miles wide) which is a d--- sight colder than Scotland...and I now think Sydney is cold! I chalk it up more to advancing age and personal preference than birthright!