Speaking to Nest Egg, Ben Plohl said that the best buy within his portfolio, from a capital growth perspective, is one that he purchased in Hobart in November 2017. He said the decision to buy in Hobart came in an effort to diversify his investment property portfolio.
“At the time, we saw the market was in a growth cycle, and with our research and advice from a buyer’s agent, we took the view that this growth was to continue,” he said.
“And boy, did it continue.”
According to Mr Plohl, within a 12-month period, the property grew by 21 per cent in capital growth. This was on top of a strong 6.33 per cent gross yield for the property, he added.
“Initially, when we bought the property, we saw adding a Hobart property to the portfolio a great way to diversify. We also wanted to use this strong-yielding property to balance out some lower cash flow properties within our portfolio,” Mr Plohl said.
As for his top tip to other investors, Mr Plohl recommended not going at it alone.
“Use professionals like buyer’s agents who are experts in securing great properties.”
In the last week, Hobart was the only capital city that saw a price gain, at a modest 0.8 of a percentage point.
There were slight price falls in Brisbane of 0.3 of a percentage point and Canberra of 0.2 of a percentage point. Adelaide remained flat.
Sydney dwelling prices fell by another 1 per cent, taking them about 13 per cent down from their high of July 2017.
Melbourne prices also fell by another 1 per cent, bringing them 9.6 per cent down from their November 2017 high.