How cheap is Hobart? Three investor picks under $300,000

How cheap is Hobart? Three investor picks under $300,000
Jessie RichardsonDecember 7, 2020

Almost a third of Hobart house sales came in under the $300,000 mark in the December quarter, according to the Real Estate Institute of Tasmania.

An even greater proportion of house sales were sub-$300,000 in Launceston: 58% against Hobart's 31%.

Hobart was also the surprise standout for December, with CoreLogic RP Data recording 1.6% price growth for the month - the second highest result of any capital city.

But does Australia's cheapest capital city actually offer strong prospects for investors?

Property Observer looks at three Hobart rental properties which cost less than $300,000. All were purchased in the past two years.

34 Tingira Road in Blackmans Bay is an investment property currently available to rent at $335 per week. The owners paid $290,000 in March 2013, with the vendors paying $87,000 in 1992  – meaning the home's value increased more than threefold in their 20 years of ownership.

34 Tingira Road

If the renovated two bedroom house is rented at $335, it will reflect a rental yield of 6%. The house has built in robes in both of the bedrooms, open plan living and kitchen area, a separate bungalow and water views from the front deck.

Further out – roughly 45 minutes from Hobart's centre – is 5 Solly Court in Cygnet. The western red cedar has three bedrooms over its two storeys, and cost its investor owners $220,000 in 2014.

5 Solly Court

It's available now for $270 per week – offering a rental yield of 6.4% if secured.

14 Alfreds Garden in Kingston cost buyers $260,000 in January. The two bedroom house, built in 2003, was rented out by the vendors in 2013, with an advertised rent of $310 per week. At that same rental rate and its current price, 14 Alfreds Garden would yield 6.2%.

14 Alfreds Garden

The previous investors paid $220,000 for the house in 2005.

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