|Elphin Villas are located on the fringe of Launceston’s CBD. Close to Sporting venues and healthcare providers, the property is popular with corporates, tourists and visitors to this regional centre.
Launceston is the capital of Tasmania’s north being the largest city there as well as an important centre for government, healthcare, agriculture (especially dairy and food).
Launceston has been performing poorly for nearly a decade but has recently upgraded its airport and Tasmania has taken out a disproportionate share of recent Australian tourism awards. As the gateway to Cradle Mountain, Tamar Valley and other attractions, Launceston has grown in prominence over the past year and is starting to attract increased visitors.
Many motel properties in Launceston are tired and in need of renovation and are poorly designed with inadequate parking. Elphin Villas appealed for its ability to be upgraded fairly easily to stand out from the competition. The self-contained units are very popular and relatively rare in the town and its proximity to shops, parks, and cafes make it attractive. The apartments are already strata titled making multiple exit options possible to enhance capital returns.
TARHF saw an opportunity to buy into Launceston during the low point of the cycle, upgrade the property and achieve attractive yields. A 200k capex program repositioned the property and a recent surge in Tasmanian housing prices has underpinned a demonstrable capital gain outside the trading performance of the property.