REVEALED: Secrets of Tassie’s real estate titans
With an almost impossible buyer’s market, the thought of edging into the housing game can be extremely daunting. Some of Tasmania’s top real estate agents reveal their insider tips, the best suburbs to invest in and tips for new home owners >>
- Why property prices and rents will continue to rise in Hobart
- Suburbs where you should have bought five years ago
Some of Hobart’s top real estate identities have revealed the hidden gems of the city for those looking to crack into Tassie’s exploding housing market.
With the lack of homes putting an unprecedented pressure on prices across the state paired with interstate buyers swooping in and snagging pristine properties in the midst of the pandemic, the thought of even edging into the market can be extremely daunting.
Despite how intimidating it may seem, the industry’s insiders say there’s still hope for the younger generation.
They give the lowdown on where you should be investing, what you should be buying and the tips and tricks you should be taking on board to snag your dream home.
Deb Stephens – EIS Property
Where to invest
“Anything that comes on the market under $500,000 at the moment is really prime for first home buyers or investors.
I’ve recently sold one in Rokeby and I had multiple offers – all were first time homeowners and investors – that’s an affordable area as well as Lutana. Prices there are going up though and getting into the market is tough at the moment and a lot of investors are spending more than $500,000 because prices are so buoyant.
Areas like Risdon Vale used to be a great place you could buy for first homeowners and properties are continuing to sell out there.
There’s definitely a lot of mainland inquiries and the difficulty at the moment is that they aren’t able to get here to look at it – we are relying on FaceTime so they can see the property.”
Industry tips
“The volume of sales are down because people have got nowhere to go – if they sell where do they move to? Just get all your ducks lined up in a row. If you need to get finance make sure you have the preapprovals, talk to a building inspector and find out how much notice they would need to get through and hold an inspection.
Try and keep your time frames as short as possible. Be ready to buy and know what a contract looks like.
Get as much information as you can before you go and look at the property because right now you are often having to make a decision on the spot.
Remember if it’s meant to be it will happen, and just put your best foot forward and pay what you can.”
Stand out property sold within the last six months
714 Oceana Drive, Tranmere – sold in one week for $1,030,000 in December 2020.
Harry Coomer – Peterswald for property
Valuable suburbs for first home buyers
“We’ve seen more success for first home buyers slightly further afield in suburbs like Midway Point, Sorell, Glenorchy, Rosetta, Lutana, Kingston only because the prices are a touch more affordable and people have the chance to compete. Two suburbs which appear to have good value for money based on their proximity is Warrene and Mornington. They aren’t as expensive as their neighbouring suburbs like Howrah or Rosny.”
Where to invest
“It’s fair to say all of Tasmania is really popular at the moment everywhere has boomed as we have experienced a significant adjustment over the last six months.
Once upon a time 10 years ago your first home would have been a renovator’s delight in Howrah for $300,000. You can get properties worth $300,000 these days in the likes of Primrose Sands or New Norfolk – the reality of a first home has now changed. It has shifted and it’s now looking to suburbs that will support the budget because wages haven’t increased in the way property prices have.”
Industry tips
“When first home buyers are investing now it doesn’t mean that it will be their forever home. It’s now about compromise and working out what you are willing to sacrifice and what you are not – for many the home that they desire they will have to search further afield for and then in several years time when they are looking to buy a second time round they could potentially look somewhere like Howrah.
It’s important to have a strong team around you, whether that’s partners friends and family, people to bounce property off as well as a professional team. Having a building inspector to have a look at the property within 24 hours and aligning yourself and making yourself known to reputable agencies across Hobart. It’s also great to get in touch with a broker or finance institution making sure that someone has a preapproval in place and is ready to help you secure the property.”
Stand out property sold within the last six months
1/21 Midway Point Esplanade, Midway Point – sold in July 2021 for $525,000.
Sam Towns – Petrusma Property
Where to invest
“It all comes down to your budget, the further out from the city the less expensive it will be. What I would suggest is get as close as possible. If you could afford North Hobart or West Hobart or South Hobart, you’re paying $700,000 to $800,000 to buy a house or even more in these areas. Depending on your budget you might need to go further out to Moonah or Kingston.”
Tips to get into the market
“You need to do your absolute best with your offer because it’s a competitive market right now – it’s not good enough coming in low and hoping for the best.
At every property I sell I’ll have between five and 15 people that have missed out.
If buyers see value they will compete – the prices have just gone up so much and demand remains strong but supply is limited – there are so many buyers at the moment but there aren’t many homes to buy.”
Why Hobart is booming right now
“We’ve come through Covid very well so people around Australia have seen the value in living in an area like Hobart and also with the advance of tech and people being able to work from home more, they can make the choice to work without sacrifice.”
Stand out property sold within the last six months
4 Blackwood Avenue, West Hobart – sold for undisclosed price.
“It went well beyond expectations – I had 12 offers and I had 58 groups through the property”
Kim Morgan – Peterswald for property
Where to get a bargain
“As always the perimeter suburbs of Hobart are worth tremendous value. On the outskirts of Hobart lovely subdivisions have popped up.
There’s great value in Glebe Hill and Oakdowns – my wife and I are considering looking at something down there. There’s some lovely opportunities and they are both really great communities.”
What you should be investing in
“For my own children the advice would be the fundamentals that apply to any property — position is always important and access to amenities and service.
You should also consider the opportunity to resell — it could be a tremendous opportunity to get ahead if you invest wisely.
My wife and I bought our first home around 25 years ago when I was just getting into real estate and we were thinking about buying a lovely old stone house in the countryside.
We ended up buying somewhere central and when the time came and we moved the advice proved to be sound based on those attributes about position, location and service — they are universal when buying.”
Stand out property sold within the last six months
11 Mona Street, Battery Point – sold in May 2021.
Daniel ten Broeke – Petrusma Property
Where to get the best bang for your buck
“Anyone who has bought anything at low kilometres to the city three or so years ago they’ve done extremely well. At the moment if you were looking to do anything now you would need to look on the outskirts. My pick would be Lutana – it’s a faster run into the city than New Town but you’re paying nowhere near the amount than what other properties are going for. It’s not necessarily cheap there anymore but it’s far more affordable than almost any other area near the city.”
What to invest in
“If you’re a curious investor and you’re interested in yield the key is a low maintenance property, preferably weatherboard and a unit is a great example – properties that don’t need excessive upkeep. If you’re just looking at entering the market to live and if you want to make a wise call it’s worth looking at properties with access to land greater than 600sq m – it brings an opportunity for Strata title. Areas like Brighton or Old Beach, Glenorchy and down at Kingborough as well have great potential to develop over time.”
Stand out property sold within the last six months
15 Marana Avenue, Rose Bay – sold for over $1.2m.
Abi Freeman – Knight Frank
Where to get a bargain
“All inner-city suburbs are currently in very high demand and those properties within a 20-minute drive from the city. Lifestyle and small acreage properties are also achieving great results attracting attention from mainland purchasers. Buyers should consider up and coming suburbs such as Risdon Vale and Austins Ferry as I believe these suburbs offer good value and achieve strong yields for investors.”
Industry tips
“I would encourage purchasers do as much due diligence as possible prior to contract. Those purchasers borrowing money need to be organised. This will allow them to have shorter finance clause periods or in a position to put forward an unconditional offer. The cleaner you can make your offer the more chance you will have in securing the property.”
Stand out property sold within the last six months
“There have been many outstanding results achieved for all our Knight Frank clients however one that comes to mind was selling a home for a young couple about to start a family and looking to upsize. I was able to achieve an outstanding result which allowed them to move to a more suitable home. Selling property is about helping people move to the next stage of their life, this is so rewarding and is what I love about my job.”
chelsea.cosgrave@themercury.com.au
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