Saturday, April 3, 2010
Why I like Tasmania...and so should you!
Tasmania is a great little piece of paradise at the bottom of Australia, albeit a very cool and miserable paradise for most of the year. It is filled with old growth forests, mountains of green, boundless plains of rolling hills and areas of drought. Amongst all this are a mix of quaint, little villages, deserted mini towns, a few sprawling urbanised towns and the jewel in the crown, Hobart. Perhaps more pertinently for us investors, Tassie represents the cheapest real estate entry costs found anywhere in Australia.
Why is Tassie soooo cheap? I mean seriously, you can buy a decent 3 bedroom house with minimal work required in Queenstown for $40,000! Queenstown has shops. It has minimal infrastructure, but it does have a new hospital, it has awesome windy roads, it has chilling Roaring 40's winds, it has barren environmentally catastrophic hills surrounding it and the creek is yellow, but why wouldn't you want to live there? When you consider all the facts, I wonder if the weather is just THAT BAD, that people hate it THAT much. If that is true, perhaps with a bit of climate change, it would scrub up nicely in about 50 years or so, but that's a separate story.
Other parts of Tasmania offer unbelievable real estate bargains for investors too. Launceston, Burnie, Devonport and Cygnet. All low entry, excellent properties, some almost CF+ with great potential.
Hobart is thriving, just think Brisbane 30 years ago, the catch up is imminent. I hear great stories of developments and "refreshing" and "updating" and "modernising", verbs that have me thinking there is hope for MASSIVE capital gain in the not too distant future.
I currently have two tiny chunks of this wonderful State. My block of land not too far from Hobart is virtually my dream come true. It will one day make me a millionaire, if not a multi-millionaire. My other one is a renter, almost CF+ hidden in an area that could boom massively. If only the AFL would allow a Tasmanian team into the league. I have seen growth and I am sure I will continue to see growth as long as the rest of Australia keeps heading to the 1million plus club, Tassie will continue to be the little engine that could.