A SURVEY of investment professionals preferred Brisbane to any other city for investor prospects, but where did Hobart rank?
ONLY 4 per cent of property investment professionals have named Hobart as the capital city with the best investment prospects, a new survey has revealed.
However, Property Investment Professionals of Australia chairman Peter Koulizos said there was still plenty of interest in Hobart, and smart investments to be made near the city and throughout the state.
“The intrigue is still there, but it appears to be waning,” he said.
“In recent times we saw huge growth in Hobart property prices, but those increases are not as good this year compared to last year.
“Of course the good times don’t last forever, and Hobart has experienced very good times of late.”
Peter said if the Tassie market cooled off, he did not expect prices to drop in such a big way that it switches from a seller’s to a buyer’s market.
He said people should not expect to be able to swoop in and snatch up a bargain.
“Following a city-focused boom there can often be a ripple effect to outer areas,” Peter said. “For medium to long-term investors, I would be looking at areas outside of Hobart or perhaps in Launceston, especially with the University of Tasmania’s developments in the north of the state.”
He suggested potential home buyers should keep their eyes and ears open for sharp deals.
Peter said a bit of patience and leg work could go a long way.
“If you can find someone who is in a situation where they ‘have’ to sell, that is where you will find the best value for money,” he said,
PIPA’s national Property Investment Sentiment Survey found that 77 per cent of respondents believe now is a good time to invest, with more than half looking to purchase property in the next six to 12 months.
More investors said changes to investor lending policies had more strongly affected their ability to secure finance for an investment property compared with the previous 12 months (48 per cent in 2018 versus 43 per cent in 2017).
About 60 per cent of investors said their portfolio would be positively geared within five years.
More than 71 per cent believe changing negative gearing and capital gains tax policy will not improve housing affordability.
Over 800 investors took part in the survey in August and September.
Respondents were sourced from PIPA’s database of property investors and its members’ databases.
PIPA’s membership base includes property investment advisers, financial planners, property buyers and advocates, accountants, mortgage brokers, real estate agents, lenders and developers.
â— For a full copy of the results visit www.pipa.asn.au
Originally published as What a capital idea
Jarrad Bevan, news.com.au, 4 October 2018