Hi all we are looking at buying an IP in cairns QLD was just wondering if anyone has properties in cairns and what the rental market is like or somewhere i can find out on the net. First time investors so just trying to get all the info we can
Welcome Nathan. While there are probably some bargains in the current market, it's likely you will need to be able to wait out the current 'depression' in TNQ. The area is hugely reliant on tourism and economic downturns hit hard, particularly when international visitors dry up. See your other thread re. Stamp Duty re. the Hedley Group collapse, cairns unemployment etc. Tread carefully
Hi, Had an IP before moving to Cairns. Points to note: Holiday units over supply, developers not in tourism industry build and then real estate investors, without tourism industry experience, buy based on emotion after having a great holiday. Then the tourism industry steps in to manage or bulk sell travel and make all the money without the risk. Loads of properties becoming outdated due to lack of refurbisment or cheap makeovers, (especially in Port Douglas). Units too small for regular rental or not allowed. Worse than timeshare imo unless you get a rare place with a great view. Properties with rainforest, creeks, waterfalls very popular. Many live here for a green change rather than a sea change, a fact not appreciated by many outside this market. Low lying areas or maybe even canal beware, may have midgies or too many mossies. Some suburbs undervalued for this reason only. Rates I think a bit high in relation to property values. Economy runs hot and cold. Timing entry is perhaps easier to figure out and quite simple economic drivers. Unemployment now quite high. Dogs. Never seen so many people own dogs so having a pet friendly house may give a slight edge. Also boat ownership popular. So understanding the lifestyle can help purchase a popular type of property. Usually rentals have been about what the property value is for everyday homes. Not 100% sure at the moment so very general rule of thumb. So basically if a house is worth 300,000 then you should look at $300.00 a week rent as a rough guide only. Termites: Termite capital of the universe. When having a pest report done expect there may be evidence of past or current termite activity as there are part and parcel of life up here. So need to know what is acceptable and what is controllable. Structure of house should be considered in this regard. Maybe same in NT, not sure. Suburbs with crime reputations start with M at the moment. If you look to buy now probably best time to seek out very attractive houses that have been heavily discounted, ie the top end of the market. No reason to see everyday house have any capital gain anytime soon. Though watch for government investment strategies as Cairns earmarked for stimulus due to high unemployment.
