If you compare the increase in value of investment property in Warrane, 7018 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 14.07%.
Taking the average capital gain, or increase in median house value, Warrane,7018 has racked up an average of 14.07% over the period. This ranks it number 178th in the whole country for real estate investors looking at median house price increases.
Using the current median advertised rental of $360 and the average annual increase in value of a median property of 4.30%, investors should hope to achieve an overall return of 5.50%
Investment property in Warrane has done well for investors when compared to the country as a whole over the last 12 months, with an increase in the median house price of 8.69%
Warrane,7018 has offered an average of 8.69% return per annum in house price rises to property investors over the last three years.
Advertised rents are around the $380 mark per week – giving a return of 6.19% based on the median price in Suburb
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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.