I went to an Ed Burton seminar last year. I found it a good introduction to wealth creation as I was the ultimate newby at the time, well still am really.
Anyway, his main property investment tactic is positively geared property in the Cairns area.
He has mentioned the areas of Bentleigh Park, Mount Sheridan, Brinsmead, White Rock and Edmonton.
He claims in these areas houses can be found with positive cashflow (at around $50-100 per week) and with a capital growth rate of 7%+.
Now this sounds VERY inviting to me. If its actually possible. Or even if its close to possible really.
So does anyone here have experience with these paticular areas in Cairns?
Or is anyone experiencing similar situations in other areas of Australia?
Any opinions appreciated.
Thanks
Hello,
Right up our neck of the woods.
Also, Bentley Park, not Bentleigh Park!
These areas are in ‘nappy valley’ and have undergone big growth recently. Land value has close to doubled in the last few of years. Property here seems to be plateauing as houses are sitting a few months rather than days as three years ago!
I would say it would be very difficult to find the positively geared properties you wrote about but because of better rental returns it is good.
In your list, I would say Brindsmead is the least likely to have options, but you never know.In my opinion, you generally need to be careful of city centre units/appartments because of future overdevelopment in Cairns and the up down nature of seasons in terms of sales and renting.
I am very interested to hear from anyone up here in Cairns or other people who are investing up here.
It’s great to be in paradise, we’re happy to talk F’n’Q with anyone who has doubts or a love of the area!
Originally posted by specific:Hello,
Right up our neck of the woods….
Thanks for the reply. Its good to hear from someone who’s in the thick of it.
So it sounds like it used to be the go, but is tapering off now. Shame that.
Thanks for the tips on the apartments, but I’m looking at houses exclusively so its not a worry.
Thanks again.
Don’t give up yet!
I think compared to Melbourne/Sydney there are often better yield properties at a lower entrance point to the market up here.
The areas you mentioned are areas with potential and sitting on a property here is easier on the gearing than elsewhere from our research.
Or perhaps, we just live here and look through paradise tinted spectacles!
PS Who is Ed Burton? (pardon the ignorance)
Originally posted by specific:Don’t give up yet!
I think compared to Melbourne/Sydney there are often better yield properties at a lower entrance point to the market up here.
The areas you mentioned are areas with potential and sitting on a property here is easier on the gearing than elsewhere from our research.
PS Who is Ed Burton? (pardon the ignorance)
Oh dont worry I havnt given up. I do like the fact the entry is much cheaper than down here. And your right the gearing seems good too.
The only thing is that I plan to get an IP there in about 12 months, so I hope its still working ok then.
Ed Burton is a wealth creation guru.
Hi thek,
I’ve been a fan of Cairns for a few years, since it was opened up as an international airport about 3 years ago. I expected things to go up in the region, but I also think the reason that things took off as much as they did was becuase of the Vendor Tax in NSW, shifting NSW investors interstate but away from the traditional SE QLD.
To ensure consistant returns, it’s best to focus on properties that will attract local residence not seasonal residence, as specific suggested.
Many of the suggested cp+ properties up there are only p+ because of the depreciation in the first couple of years.
When doing your number when looking around, rates are about 1400-1500, Prop Mtg fees are pretty much standard at 8.5% + GST
I can see there being a bit of an oversupply happening soon, the race course was sold last year/early this year to developers. It is being rezones residential.
I’ve also heard that some housing commission areas will likely be rezoned to non HC in the next council residential planning in about 18 months time. Some of the areas previously had Owner Occupier restriction, and this will be removed.
Cairns is a nice place to have to go to, to inspect your properties every year.
Mal
Getting out of your comfort zone, can help you become comfortable
You would likely find some positively geared property in commercial RE. Prices have largely plateaued in Cairns, with steady single figure growth likely in stronger areas, but a possible upcoming glut of units likely to lead to discounting down the track. Rents have been trending upward, but once again, a unit glut could slow that down.
Have to agree though, that Cairns is a great spot to have to come and check out your investment property. If you can access finance without needing equity from banks, then small (40-55sqm) 1 br units at the budget range are available for around 100k which rent for up to $150 weekly gross: these must look pretty attractive to someone from down south. Agents are mostly really helpful and friendly, especially now things have slowed down a bit.“If you look long enough into the void the void begins to look back through you.” Nietzsche
Were the Seminar folk actually selling the property or offering to source it for you in the guise of showing you how to create wealth?
This is a Red Flag in my experience.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Mortgage Hunter:Were the Seminar folk actually selling the property or offering to source it for you in the guise of showing you how to create wealth?
This is a Red Flag in my experience.
I was on the look out for that sort of thing and thankfully, no it did not occur at all.
Only Edmonton was mentioned at the siminar, the rest were mentioned on follow up monthly cds (which I have since dis-continued).
However I do think the idea was to intice people like me to buy in those areas.
And I wonder who owns houses in those areas?
But I dont think this was the motivating factor behind the seminar and cd’s. But then again…..
Either way it still looks like a pretty good place to buy for someone like me, so I’m going to keep on researching.
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