Top suburbs for young Hobart buyers on a budget

1 week ago 8

A national property report has put a spotlight on the best Hobart suburbs for buyers with a $50,000 deposit, including Risdon Vale. Picture: Supplied

HOBART home hunters on a tight budget can get a foot on the property ladder in these areas.

New research from Canstar and Hotspotting has revealed the city’s top suburbs for young buying and prospects for those with a bit more spending power. And all of these suburbs are located within a 17.5km drive from the centre of Hobart.

The Deposit Stars report identified suburbs where a $50,000 deposit can still buy a home for up to hundreds of thousands less than Hobart’s typical $700,000s median house price range.

With $50,000 in the bank, houses in Clarendon Vale and Risdon Vale would be sharp purchases with their median prices of $390,000 and $460,000, while Glenorchy, Moonah and Warrane units range from $426,500 to $499,500.

For those with $100,000 saved, houses in Kingston, Howrah, Glenorchy, Lindisfarne and Blackmans Bay were Hotspotting and Canstar’s picks.

However, most median prices in these suburbs are in the mid-$700,000, which could make the recent stamping out of stamp duty — for first-time buyers up to $750,000 — a tight squeeze.

Glenorchy remains well below that line, while Blackmans Bay is far above it.

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Effie Zahos. Picture: John Appleyard

Canstar money expert Effie Zahos said the areas in this report were not “simply cheap suburbs” but rather places offering a good lifestyle.

“They are great suburbs with improving infrastructure and a bright future,” she said.

Hotspotting founder Terry Ryder said people are better off getting in the market now if they can, even using a 5 or 10 per cent deposit and paying mortgage insurance.

“If you wait and keep saving until you get 20 per cent, in that time, the market can move, so you’re just playing catch up,” he said.

No.50 Kerria Rd, Risdon Vale is on the market with Fall at $420,000-plus.

No.14 Eleni Ave, Kingston is for sale with Petrusma Property at “Offers over $835,000”.

In the report, Mr Ryder noted that throughout Hobart there was a pattern of suburbs that were relatively cheap, increased substantially while Hobart set the growth pace nationally for two years, then, then fell over the past two years amid rate rises and cost-of-living pressures.

Using Moonah as an example, its 2020 median house price was about $430,000, it rose sharply to $700,000 by mid-2022, then corrected to $615,000 today, he said.

“The days when Hobart offered cheap houses are gone,” Mr Ryder said.

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Hotspotting’s Terry Ryder.

This year so far, until August 31, Real Estate Institute of Tasmania figures show first home buyers (19.3 per cent, or 1106 sales) have been the second-most active cohort behind people purchasing their second home (49.1 per cent).

Investors accounted for 13.2 per cent of the total transactions, retirees 4 per cent and developers 1.1 per cent, with the remainder unclassified.

Fall Real Estate agent Justin Parr said there were quality properties hitting the market that are priced for the first homeowner.

He said the stamp duty adjustment has “absolutely” had a positive impact on young buyers.

“It has given confidence and greater opportunity to the purchasers who need it most,” Mr Parr said.

“Recently, we have seen more first homeowners presenting at open for inspections.

“However, as always, properties that can provide a solid yield and promising capital growth experience strong interest from investors, also.”