How Do I Know If a Property Is a Good Investment?

John Ferguson • May 21, 2025

Property Investing Tasmania

A Local’s Guide to the Hobart and Tasmanian Market

Investing in property is one of Australia’s most trusted pathways to long-term wealth. But the real question isn’t just should you invest — it’s where and what to invest in. And if you're looking at Hobart or wider Tasmania, you're not alone. This pocket of the market has seen exceptional growth, and for many savvy investors, it’s still flying under the radar nationally.

So how do you know if a property is a good investment? Here’s what to consider — with a Tasmanian twist.

1. Look at the Market’s Track Record

Over the past decade, Hobart has gone from “quiet achiever” to one of Australia’s strongest-performing capital cities. According to CoreLogic, Hobart experienced:

Over 90% price growth between 2013 and 2021
Rental yields that consistently outperformed Sydney and Melbourne
Lower entry prices compared to mainland capitals

This strong capital growth was fuelled by:

Affordable prices (relative to other states)
Rising mainland migration
Tight rental supply
Limited new housing stock due to planning and geography

Even after the nationwide correction in 2022–2023, Hobart has remained resilient, particularly in well-located, character-rich suburbs like Battery Point, Lenah Valley, and Sandy Bay.

2. Evaluate Rental Yield and Demand

In Hobart, rental demand is strong — driven by students, interstate relocators, and a tight housing supply. A good investment property will:

Return a gross rental yield of 4–6% or more
Be located near transport, schools, and shopping centres
Appeal to stable, long-term tenants (professionals, families, retirees)

Tools like Pricefinder, CoreLogic or the Tasmanian Government’s Rental Insights reports can help you benchmark local rents and vacancy rates.

3. Location, Location, Lifestyle

In Tasmania, lifestyle is the biggest value driver. Look for:

Proximity to Hobart CBD or waterfront
Walkability to shops, cafés, schools
Suburbs with strong community appeal (like New Town, Mount Stuart, or South Hobart)

Also watch for infrastructure projects or new development corridors (like the Northern Suburbs Transit Corridor) which could lift future demand.

4. Property Type Matters

Not all properties are equal in their investment potential. In Hobart, freestanding homes on decent land have shown the most consistent growth. Units and townhouses can still perform, but be cautious of:

Overdevelopment in some pockets
High strata or maintenance costs
Limited land value component

Investors also favour properties with renovation potential — especially those with strong street appeal and the ability to add value over time.

5. Understand the Market Cycle

Like all property markets, Tasmania moves in cycles. After a strong upswing, Hobart has entered a stabilisation phase — which can actually be a smart time to buy:

Less competition = better negotiation opportunities
Stable interest rates = clearer cash flow projections
Upside potential when the next growth phase returns

Savvy investors look for value buys in strong-performing suburbs, even when the headlines go quiet.

6. Crunch the Numbers

A good investment isn’t just about price — it’s about performance. Run the numbers:

Purchase price
Stamp duty & upfront costs
Expected rent
Ongoing maintenance/insurance/strata
Potential tax benefits (e.g. depreciation)

Use this to calculate net yield, cash flow, and long-term ROI.

7. Speak to a Local Expert

Every suburb, every street, and every property type behaves differently. An agent who knows the local market can help you:

Identify properties with growth potential
Avoid overvalued or underperforming assets
Understand which suburbs are attracting the most buyer interest

Final Thoughts

Hobart still offers rare investment opportunities — solid returns, strong lifestyle appeal, and properties with long-term growth upside. But the key is to be selective.

If you’d like a tailored investment appraisal, a suburb report, or just an honest chat about what’s working in today’s market, I’d be happy to help.

Click here to request a free Property Investor Guide

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New town real estate market update q2 2025 by ray white hobart

New Town Quarterly Market Update

By John Ferguson • June 11, 2025

Market Snapshot New Town Houses Median Sale Price: $820,000 12-Month Change: -11.1% (from $922,500) Number of Sales: 57 (Apr '24 – Mar '25) Price Range: $385,000 – $2,000,000 Highest Sale: $1,870,000 – Bellevue Parade, Jan 2025 Units Median Price: $499,000 12-Month Growth: +7.0% Rental Yield: 4.6% Median Rent: $440 per week Houses for Rent Median Rent: $595 per week Rental Yield: 3.8% Number of Rentals: 111 📍 Key Market Insight While the overall median price for houses in New Town declined by 11.1% year-on-year, the suburb remains highly desirable, with multiple six-figure sales and rapid turnover for renovated or character homes under $1M. Investors will be interested to note that unit prices are rising, and rental yields remain strong. "We're seeing solid demand for updated family homes and growing investor interest in the unit market." — John Ferguson, Ray White Hobart

A picnic table in a park with a tree in the background

Hidden Gem Neighborhoods in and Around Hobart You Need to Know About

By John Ferguson • May 26, 2025

If you're house hunting in Hobart, you're probably already familiar with popular (and pricey) suburbs like Sandy Bay, Battery Point, and West Hobart. But what if we told you there are underrated, up-and-coming areas offering lifestyle, charm, and solid value—all without the eye-watering price tags? Whether you're a first-home buyer, savvy investor, or simply looking for a quieter lifestyle, here are three hidden gem neighbourhoods in the Hobart area you should absolutely have on your radar. 📍 New Town – Artsy, Walkable, and Full of Soul Just 4km from the Hobart CBD, New Town is one of Hobart’s oldest suburbs, and it's quickly becoming one of its coolest. With its heritage charm, leafy streets, and a growing community of creatives and young professionals, New Town is the Inner North of Hobart. Why You'll Love It: ✅ Excellent public transport and walkability ☕ Trendy cafes, local bakeries, and boutique shops 🏛️ Close to schools, parks, and the Royal Hobart Hospital Median House Price (2025): ~$815,000 Rental Yield: ~3.7% 📈 Investor insight: With rental demand on the rise and limited stock, New Town offers steady capital growth and great rental potential. 🎉 Mount Stuart – Close to the City, Big on Lifestyle If you’re after family-friendly living just minutes from the CBD, Mount Stuart ticks all the boxes. Tucked into the foothills of Knocklofty Reserve, this suburb offers stunning views, quiet streets, and some of Hobart’s most respected schools. Why You'll Love It: 🏫 Zoned for top primary and secondary schools 🌿 Walking trails, parks, and green spaces 🚘 Just a 5-minute drive to Hobart CBD Median House Price (2025): ~$935,000 Rental Yield: ~3.2% 👪 Perfect for: Young families, professionals, and upsizers looking for more space without compromising on location. 🌳 Lenah Valley – Green, Peaceful, and Family-Friendly Tucked between Mount Wellington and the city, Lenah Valley combines nature with convenience. Think tree-lined streets, friendly neighbours, and a real sense of community—without feeling disconnected from the city buzz. Why You'll Love It: 🌄 Backdrop of the mountains and bushland 🛍️ Growing café and retail strip on Augusta Road 🏥 Close to Calvary Hospital and other amenities Median House Price (2025): ~$780,000 Rental Yield: ~3.9% 🌱 Local secret: A great area for first-home buyers who want affordability, liveability, and growth potential. ✨ Summary: Hobart’s Hidden Gems Deliver Big Value While the usual suspects steal the spotlight, these under-the-radar suburbs offer exceptional lifestyle benefits, strong investment potential, and a more grounded, authentic feel of Hobart living.