Right so ive decided to bite the bullet and invest in Cairns but cant decide what suburb to focus/buy in. My plan is to rent it out initially but also have in mind that I may live in it in the future.
I should just focus on what the best suburb is for tenants, good rental return and capital growth.
Can someone help me decide between North Cairns or South Cairns.
South Cairns theres Bentley Park or Edmonton or Mt Sheridan
North im looking at Smithfield, Trinity park, Trinity Beach, Holloways Beach, Redlynch.
Im also open for central Cairns like Brinsmead, Whitfield and Edge Hill.
Ive been living in Cairns for the past 3 months and have been trying to research these suburbs and Im getting a lot of mixed answers which makes my decision even more difficult.
Any outside opions on these suburbs would be appreciated.
Im willing to spend a max of $300,000 and want the best rental return possible so I dont have to pay as much out of my own pocket each replaymentThank you!
Hi Erikmarwood,
It is definately a buyers market in Cairns at present there are some good buys to be had. Are you looking to buy a house or unit?
I would suggest ringing a few property managers and asking them what is renting quicker at the moment and what tenants are looking for. Dont ask a sales agent this question they will all tell you something else and you will get confused. Talking to the property managers will also give you a feel of which ones are efficient and know the market for when you want to rent your investment out.
There is a lot on the market in Southern cairns both to rent and buy- this is great for buying but then there are also a lot of properties to rent which will give you lower yields. I am not familiar with the amounts on the nth side – I have seen a couple of good renovaters there.
You will be hard pressed to find a house in the central suburbs of Cairns – brinsmead, edge hill whitfield at under $300,000 even in todays market.
I havnt looked a lot into the unit market, though believe there are some good buys with yield over 5% at the moment.
Hi erikamarwoodI got the following email from a chap I met in Perth just over a week ago. I pass it on only to help him, i.e. I'm not making anything out of it. You'll have to do your own due diligence on the location as I don't know much about Cairn's locations or the Cairn's market.
I pass this on only from the point of view that it may or may not be interesting because of the inbuilt $15K deposit.
Hi Paul,
I'm pleased to have met you over lunch and afterwards. The following are the details of the property at Cairns as discussed.Lot xxx 'Clifton Views Luxury Beach Apartments', Clifton Road, Clifton Beach Qld 4879. Clifton Views is a resort style complex which is now completed and is aimed at long term owners and residents. It is located 20 minutes North of Cairns CBD and is on the same beach as Palm Cove which is a noted holiday destination and where the prices of land and apartments are 2-3 times higher.I purchased Lot xxx off the plan 3 years ago for $295,000 on a 5% deposit. It is a very nice 2×2 with a Lanai (al fresco) and undercover parking.I selected Lot xxx because it is a ground floor apartment with easy access for moving furniture etc and is located near to (but not too near) the entrance, main swimming pool, gym and barbeque areas.The complex was built by Glencorp Pty Ltd who have built some similar short term and long term accommodation resort style apartment complexes in Cairns and other large regional centres in Northern Queensland. This can be researched on the internet.I already own an apartment in one of these – Unit xxx City Waters and am very happy with it. This was completed 2 years ago.Due to the GFC and tight lending conditions my situation now is not conducive to completing the purchase of lot xxx Clifton Views and I stand to lose my deposit and incur other penalties.I am therefore looking to explore the opportunity of obtaining a buyer to take advantage of the situation and to provide mutual benefit.Units similar to mine in Clifton Views are currently still being offered at $295,000 and should continue to sell for about this amount.As I understand it, the real estate market in Cairns is somewhat depressed at the moment and this has led to the failure of one or two large developers and a complete halt to the building of similar apartments in Cairns. However, as the backlog of apartments is taken up it is expected that prices will increase as they are not being replaced.There seem to be an option for someone to work with me to provide a mutual benefit. That is:Buy the property for from me for $280,000 which is at a discount to the market of $15,000 and I take the loss. This would require the vendor to write a new contract for the new buyer for $295,000 and accept the current deposit toward this. I believe that the vendors would be prepared to do this to achieve a sale. New buyer to accept any new costs and stamp duty etc. Need to act fast as Registration of the plan and settlement is imminent.Obviously, time is of the essence. I believe I could get a short extension if I am able to advise that I have a plan for completion, as I am sure that a settlement would be preferable to both the developer and their banker.Please cc any response to my work email address as above.Kind regardsCheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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