Over the last year, property investments in Lutana, 7009 have given investors a capital gain of 13.10%. This compares averagely with the 11.42% for TAS as a whole.
Across a shorter period, Lutana, 7009 has seen a median price increase of 1.28% over the last quarter.
State is the 6th most discounted Australian state or territory in this month’s figures with an average Vendor Discount of -5.50% offered to property buyers. Sellers in Lutana itself are offering an average vendor discount of -6.67% to real estate investors.
In the last year 36 properties changed hands in Lutana, which puts it as the 74th most active market in TAS when comparing the number of sales per suburb.
If you compare the increase in value of investment property in Lutana, 7009 to the rest of Australia, it performed very well. The median increase in value, or capital gain property investors experienced for this TAS suburb was 16.83%.
Comparing Lutana,7009 ‘s 5year and quarterly average capital gain offered to property investors, it performed less well across the longer period
When looking to buy, or assessing what properties are really achieving at sale, it's essential for property investors to take into account what discounts are being offered in Lutana, 7009. Typically our figures indicate that -4.51% is being offered, which puts this TAS suburb at 939th most discounted overall in Australia.
A $310 per week rent on the median house gives suburb investors a gross yield of circa 5.80%, without taking into account capital value appreciation, which has been averaging out at 6.75%.
Investors looking for an affordable suburb that is likely to perform strongly would do well to consider Hobart suburb Lutana. With stunning views of the river and Mount Wellington, many will be shocked to discover that its median house price is under $300,000. Full summary
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Investors looking for an affordable suburb that is likely to perform strongly would do well to consider Hobart suburb Lutana. With stunning views of the river and Mount Wellington, many will be shocked to discover that its median house price is under $300,000.
Lutana is just 5km north of the CBD. Part of the reason for the suburb’s affordability is its proximity to the Zinifex zinc works: in fact, the suburb was originally built by the Electrolytic Zinc company as homes for its employees at the nearby zinc smelter.
There have been issues with soil contamination due to past activities at the Zincworks – albeit with no danger to residents’ health – and current owner Zinifex has been spending significant amounts of time and money cleaning up the Zincworks since it acquired it 20 years ago. As a result, Lutana has been overlooked for several years. Meanwhile, many locals describe it as one of Hobart’s ‘best-kept secrets’.
The suburb is largely residential, with a few local stores on Brooker Avenue, but neighbouring Moonah has a significant retail amenity presence, with a sizeable shopping centre. Moonah also provides local schools.
It’s a small suburb, principally made up of detached houses. While there’s a sizeable retiree community, it is becoming more popular with younger families and there may be scope to add value to shabby properties through renovation – especially those built by the original Zincworks operator.
Rental yields are among the strongest in northern Hobart at over. The suburb also has a tight rental market, with a vacancy rate that's barely risen above 2% over the past five years, according to SQM Research figures.
Properties on the eastern side of the suburb may suffer from the aforementioned soil contamination issues, so buyers may wish to stick to the west of the suburb and would be well advised to carry out ground surveys prior to purchase.