A Great Place to Live – Why Investors Are Rushing to Buy Property In Tasmania
Tasmania is a great place to live, with beautiful surroundings and loads to do. This is something those of us who live here already know. However there has been an interesting trend of late of people looking to invest in property in Tasmania, specifically in Hobart. The Tasmanian property market has seen a lot of investors coming to spend money on houses in recent times, and this is a trend that boosts our economy and also gives Tasmania a bigger position in global terms. But why are we such a popular destination for property investment?
Current Investment in Tasmanian Property
At present, a quarter of all Tasmanian homes are sold to investors. It has also been shown in surveys that one in five houses sold in Tasmania is an investment purchase, rather than a Tasmanian trying to get onto or move up the property ladder. More and more investors are coming into the market, and the Real Estate Institute of Tasmania believes this is a trend that will continue. President of the REIT Tony Collidge commented on the trend for the percentage of owner-occupiers in Tasmania dropping down, and said: “The rate of investment will continue to grow,”
Young People Reluctant to Buy
Tony Collidge also commented that one of the reasons why investors are reaping so many Hobart properties is that young people aren’t in the culture of buying homes in Tasmania. “Young people don’t always want to be tied down to the place they own,” was his quote on the matter. Young people like the freedom to move around that they can get from renting, and so are not as inclined to buy as in previous generations. While they still want to live and work in Hobart, they prefer being able to rent a home over committing to buy, as this gives them more freedom to move wherever their careers may take them. This means that those buying property in Hobart as an investment have a wide audience of prospective tenants who would rather pay them rent than own a home in the area.
Another reason why Tasmania has been a target for investment is the currency exchange rate. If you are a forex trader, you will already know that the Australian dollar has been fairly weak in recent times against other major currencies. This means that for foreign investors in Asia and other parts of the world, Australian property is cheaper to buy in their own currency. When looking at locations in Australian territories, Tasmania really stands out as a place to invest thanks to its growth and tourism appeal, and the fact it has a strong rental market.
The trend for real estate investment in Tasmania is an interesting one that does have a big impact on the economy of our island. In economic terms, it is a good thing, however the switch towards a rental culture among our young people does suggest we may lose a lot of our talent to other locations. It will be interesting to see how things develop!
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