Investment Property in Hobart

Investment Real Estate in Hobart

Hobart property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Hobart .

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Search Map of Hobart Investment Real Estate

Hobart (, Palawa kani: nipaluna) is the capital and most populous city of the Australian island state of Tasmania. Home to almost half of all Tasmanians, it is the least populated Australian state capital city, and second smallest if territories are taken into account, after Darwin, Northern Territory. Hobart is located in Tasmania’s south-east on the estuary of the River Derwent, making it the most southern of Australia’s capital cities. Its skyline is dominated by the 1,271-metre (4,170 ft) kunanyi/Mount Wellington, and its harbour forms the second-deepest natural port in the world, with much of the city’s waterfront consisting of reclaimed land. The metropolitan area is often referred to as Greater Hobart, to differentiate it from the City of Hobart, one of the five local government areas that cover the city. It has a mild maritime climate with tempered summers and moderated winters.

Founded in 1804 as a British penal colony, Hobart is Australia’s second oldest capital city after Sydney, New South Wales. Prior to British settlement, the Hobart area had been occupied for possibly as long as 35,000 years by the semi-nomadic Mouheneener tribe, a sub-group of the Nuennone, or South-East tribe. Whaling quickly emerged as a major industry in the area, and for a time Hobart served as the Southern Ocean’s main whaling port. Penal transportation ended in the 1850s, after which the city experienced periods of growth and decline. The early 20th century saw an economic boom on the back of mining, agriculture and other primary industries, and the loss of men who served in the world wars was counteracted by an influx of immigration. Despite the rise in migration from Asia and other non-English speaking regions, Hobart’s population remains predominantly ethnically Anglo-Celtic, and has the highest percentage of Australian-born residents among Australia’s capital cities.

Today, Hobart is the financial and administrative hub of Tasmania, serving as the home port for both Australian and French Antarctic operations and acting as a tourist destination, with over 1.192 million visitors in 2011–12. Well-known drawcards include its convict-era architecture, Salamanca Market and the Museum of Old and New Art (MONA), the Southern Hemisphere’s largest private museum.

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The financial stability of Hobart has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Hobart

Renting out your Hobart buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Hobart are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Hobart and be prepared to change your initial outlook.
Thoroughly research the Hobart location with a special emphasis on fringe areas outside the main Hobart metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Hobart.
Ensure that your target investment property in Hobart appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Hobart properties yourself is an easy option, but are these savings justifiable when you run into Hobart red tape? Physis Realty Hobart office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Hobart buy-to-rent sector.

With our expert guidance, investing in Hobart provides the secure knowledge that your money is working harder than it would in a local Hobart bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Hobart, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Hobart property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Hobart

Flipping property in Hobart

Flipping property is when we advise clients to buy a Hobart property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Hobart market has a time to react to the renovation.

The Flipping Strategy in Hobart

Investment property flipping in Hobart is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Hobart real estate investments are sometimes referred to by professionals as ‘distressed’ Hobart real estate.

What is distressed Hobart property:

Hobart property in need of renovation
Hobart real estate with a change of purpose and use
Oversold Hobart property
Bank repossessions in Hobart

Put simply, long term investors in Hobart purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Hobart investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Hobart property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Hobart use a minimum profit value of 22% when looking at potential Hobart projects. The reason for this is because there are lots that can go wrong in Hobart property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Hobart

For luxury property investors hoping to add a superb property in Hobart to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Hobart, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Hobart should be entrusted to only the highest-quality agency.

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