Warrane has had a A very good year for property investment returns compared to the rest of TAS, giving investors a capital gain of 20.37% to date .
Data for the last quarter indicates that, in the short term at least, the capital value growth rate for property investors in Warrane has increased when compared to the 5 year average annual rate.
A $360 per week rent on the median house gives suburb investors a gross yield of circa 5.76%, without taking into account capital value appreciation, which has been averaging out at 3.85%.
With a capital gain of 8.97% for the last 12 months, Warrane, 7018 has performed for property investments than its average annual 4.68% property growth over the last 5 years.
Warrane,7018 has offered an average of 8.97% return per annum in house price rises to property investors over the last three years.
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Warrane is just 5km east of the Hobart CBD, across the Derwent River. It’s a former Housing Commission suburb which has had something of a rocky reputation in the past: however, it’s becoming increasingly popular for younger buyers looking for affordable housing and property investors.
Matthew Carn, director of Raine & Horne Eastern Shore, reckons the suburb attracts three types of investor: small-scale developers, renovators and those looking for an affordable investment.
“One of the strengths of the suburb is the size of the blocks its houses are built upon: these are typically around 800 square metres in size,” says Carn. “What many investors are doing is buying a property, chopping the block in two and building a unit on the back of the block.”
The predominance of older-style weatherboard houses also means much of the area is ripe for renovation, he adds.
While the area is largely residential, neighbouring Rosny Park has “all the services you could need”, according to Carn: it’s also well-located on the Tasman Highway, with commutes to the CBD taking less than 10 minutes. As the suburb is quite long and narrow, it’s difficult to stray too far from the highway, adds Carn. Instead, he recommends seeking out properties that are as close to the amenities and employment opportunities of Rosny Park as possible.