Investment property in Newstead has done pretty poorly for investors when compared to the country as a whole over the last 12 months, with an increase in the median house price of 7.00%
While Newstead,7250 ranked number 134th in TAS for increase in median house value (annualised) increase, it is ranked 127th over the last 5 years.
Our latest figures would indicate that property sellers in Newstead are currently offering property investors an average price cut of -5.43% below the asking price at the moment.
With the median price for a house in Newstead being $481500 and the advertised rent reaching $465 the gross rental yield for property investors calculates out to be 5.02%
Newstead has had a very poor year for property investment returns compared to the rest of TAS, giving investors a capital gain of -3.50% to date .
The five-year average increase in median property values for Newstead,7250 has given property investors a potential capital gain of 50.91% across each of those five years.
A $320 per week rent on the median house gives suburb investors a gross yield of circa 5.03%, without taking into account capital value appreciation, which has been averaging out at 5.68%.
Information supplied by:
Values fall sharply
Median unit price: $244,000
Three-year growth: 26.4%
Rental yield: 4.7%
A close neighbour of Launceston, Newstead is benefiting from the city’s increasing prominence among homebuyers. It is populated by many schools, such as Newstead College, Newstead Christian School and Launceston Preparatory School. Thus, it is perfect for growing families looking for education options. It is also characterised by its leafy streets, character homes, restaurants, pubs and shops, including the Newstead Shopping Complex. A medical centre is located here as well.
As with most of Tasmania, Newstead enjoys low prices. However, over the July 2017-2018 period, unit values fell considerably by 7.9%, causing the median price to fall below $250,000. This marks the breaking of the strong positive growth trend enjoyed by the suburb since five years ago.
Nonetheless, Newstead still offers good returns on rent – 4.7% yield off average rent rates of $220 per week