Hobart

Our Suburb

Due-Diligence

 
In this section, we take a closer look at our prefered regions in Hobart so you have a true understanding of these areas and their surrounds. We digest the data that matters and take a look at the lifestyle elements that make Hobart the city it is.

Moonah (and surrounding suburbs)

 
Our thoughts
Moonah is situated 5km North West of Hobart and is at the foothills of Mt Wellington. Moonah is surrounded by Lenah Valley, New Town, Mt Stuart and North Hobart. 
 
Like Hobart as a whole, Moonah and surrounding suburbs fall into the 'rising market' phase of the property cycle.
 
Housing in Moonah and surrounding suburbs is generally a mix of older style weatherboard houses and double brick. There are signs pointing to these properties being renovated, but this is still in its infant years.
  
Supply in Moonah is extremely tightly held, which can be a good thing - it does, however, mean that there is high demand for property in the area. With this being the case, we would not limit our search to just Moonah, but to neighbouring suburbs too.
 
Properties in your price range require minor cosmetic work. We will identify these needs when presenting properties with a summary of the required works and estimate the cost associated with that. If we do progress and the renovations are something that you'd like to progress with, we would supply you with a full financial feasibility study.
 
What we like to do:
We like to purchase homes with character that are dated and/or un-renovated, on a flat block with room to extend out and up at a later date. These homes, in particular, will also appeal to owner-occupiers driving up the emotional value of the property. The home will be two bedrooms (potentially three if available in your price range) with the scope to add an additional bedroom in the future. 
 
The Strategy:
To purchase a property under $400,000 with a block size circa 500m2. The property would ideally be un-renovated with scope to add value with capital input ranging from $10k - $30k pending on the purchase price. The property in its current condition would generally have a rental yield up to 4.7% and your monthly out of pocket expenses up to $190. Post-renovation we believe you can achieve rental yields up to 4.9% reducing your out of pocket expenses so the property in neutrally geared. If we are purchasing at the top end of the quoted range, the property should not require renovating. Your monthly out of pocket expenses at this price would be approximately $145.
 
As we have mentioned, Hobart is a market we are monitoring closely, at this stage we believe it is a medium term hold. We will, of course, keep you abreast of your property to ensure it's working as hard as possible for you.

The Numbers

 

Population

5,284 (2016)

 

Increasing/Decreasing Population

The population has increased by 3.08% from 2011 to 2016

 

Vacancy Rates

0.4% of properties in the region

are unoccupied. We don't like the rate to be above 2%

 

Example Purchasing Feasibility

Click here

 

Average Days on Market 

24 days on average to sell a home

 

Percentage of Sales by Auction

This is not an auction market

 

Ratio of Renters to Owner Occupied

38% are renters / 62% are owner-occupied. We prefer renters to be under 35%. More owner occupiers generally means properties are better looked after in the area and greater demand for tenants for an investment

 

Supply vs. Demand

DSR (Demand Supply Ratio) score of 85. The DSR is a number out of 100 that gauges the demand relative to supply for a residential property market. We look for this to be always over 50. 60 is great, 70 is excellent

 

Housing Affordability

(Asset to Income)

29.55%. This is the percentage of the household income that goes towards paying a mortgage. We like this to be under 40%

 

Monthly Household Income

$4,376

 

For Sale Now (Online) 

Houses - 3

 

Median House Price (All)

$348,000 (2-bed $256,000)

 

Median Rent &
Gross Rental Yield (All)

$360 / 5.4%

 

Last 12-Month Capital Growth

15.12% 

 

Renovation Potential

Yes. Opportunity to add value in two common ways; 1. Cosmetic, 2.Extension with an additional bedroom

 

Public Transport

Bus to CBD - 15 minutes

Car to airport - 21 minutes

Car to Launceston - 2hr 21min

What's Around

The Numbers

 

Population

5,953 (2016)

 

Increasing/Decreasing Population

The population has increased by 2.63% from 2011 to 2016

 

Vacancy Rates

0.4% of properties in the region

are unoccupied. We don't like the rate to be above 2%

 

Example Purchasing Feasibility

Click here

 

Average Days on Market 

25 days on average to sell a home

 

Percentage of Sales by Auction

This is not an auction market

 

Ratio of Renters to Owner Occupied

35% are renters / 65% are owner-occupied. We prefer renters to be under 35%. More owner occupiers generally mean properties are better looked after in the area and greater demand for tenants for an investment

 

Supply vs. Demand

DSR (Demand Supply Ratio) score of 74. The DSR is a number out of 100 that gauges the demand relative to supply for a residential property market. We look for this to be always over 50. 60 is great, 70 is excellent

 

Housing Affordability

(Asset to Income)

25.54%. This is the percentage of the household income that goes towards paying a mortgage. We like this to be under 40%

 

Monthly Household Income

$6,643

 

For Sale Now (Online) 

Houses - 6

 

Median House Price (All)

$644,000

 

Median Rent &
Gross Rental Yield (All)

$483 / 3.9%

 

Last 12-Month Capital Growth

13.36% 

 

Renovation Potential

Yes. Opportunity to add value in two common ways; 1. Cosmetic, 2.Extension with an additional bedroom

 

Public Transport

Bus to CBD - 7 minutes

Car to airport - 21 minutes

Car to Launceston - 2hr 21min

West Hobart

 
Our thoughts
West Hobart is situated 2km West of the CBD. It is surrounded by North Hobart, South Hobart and Mount Stuart. 
 
West Hobart is a leafy, quiet suburb. It spreads from the restaurant strip of North Hobart, up to the foothills of Knocklofty. At the city end, it borders the CBD and wanders up Forest Road. It has it all, the views, city access and access to restaurants and cinemas.
   
Supply is extremely tightly, which can be a good thing - it does, however, mean that there is high demand for property in the area. With this being the case, we would not limit our search to just West Hobart, but to neighbouring suburbs too.
 
At the lower end of the price range, we expect to be buying properties that will need some cosmetic improvements, at the higher end, properties will be tenant ready. We will identify these needs when presenting properties with a summary of the required works and estimate the cost associated with that. If we do progress and the renovations are something that you'd like to progress with, we would supply you with a full financial feasibility study.
 
The Strategy:
This particular strategy would be to buy at the higher end of the range so you can lease the property immediately. The property would generally have a rental yield up to 5.2% and your monthly out of pocket expenses up to $230. The tenant will most likely be young professionals or a same-sex couple. Tenants are looking for great access to the CBD, restaurants, cafes and nightlife - which is what West Hobart provides.

What's Around

PROPERTY STYLES

LIFESTYLE

PROPERTY STYLES

LIFESTYLE

PROPERTY STYLES

LIFESTYLE

LIFESTYLE

INFRASTRUCTURE

The airport runway extension, this is a $40M state and federal government project, the extension will allow for direct passenger flights from Hobart to Asia and one-stop flights to Europe. Opportunities to deliver fresh export (seafood, fruit and other fresh produce) straight to Asian markets and strengthening Hobarts position as the preferred Antartic gateway by providing a complete logistics hub with increased aviation capabilities.

What Social Media Is Saying

* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.