While property prices have risen steadily over the years, the economy did suffer a little in 2010. A number of businesses closed down. Disputes between the foresty industry and environmental groups also had their impact. There has been a rise in unemployment
Now there are two different views of Tasmania real estate. According to one view, Tasmania property will continue to do well. The other view takes the position that the Tasmanian property market is about to decline.
Glass half empty
Why do some see a glass half empty or a negative outlook? Lack of economic drivers and a hung state parliament do not help the situation, it is believed. Investment levels are decreasing, household consumption is not going anywhere, and there is a little surplus in housing stock.
Glass half full
What about the glass half full or positive outlook - what's behind that? While it's true that capital growth may remain flat due to housing stress, this could mean some good rental yields, particularly in Hobart and Launceston.
With the foresty industry and environmental groups making progress toward agreement, things are looking up. The proposed Gunns pulp mill in the Tamar Valley has been given the go-ahead. North of Hobart, a new transport hub in Brighton as well as road and rail improvements are planned.
Being a long-term investor would be the way to go.
Here are some figures for Hobart:
Growth 12 months
Growth 3 months to Sep 10
Rent amount Sep 10
Source of information: Your Investment Property magazine, January 2011 edition
Please note that the information on these pages is based only on my own research and personal investment experience. It is not meant to be advice. Always seek professional advice when making decisions regarding property and finance.
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