G' day all,
I've being checking out Cairns. If ever there's big bang coming, it's got to be Cairns.
With a semi-retired mate, who lives there, I've worked out that the best part of Cairns is on the north side.
We've been through every development site possible.
One site is selling two thousand building sites. Hundreds of houses are now being constructed at Redlynch, Brinsmead,Smithfield etc. There are lots more areas being developed in ajoining suburbs.The houses are built of Besser Block to the cyclone conditions. Well built, nice looking homes. schools -primary and high schools. High school at Redlynch Central is called a "college".
Prices are starting at four hundred and sixty thousand to one on display for six hundred and sixty thousand.(four bedroom homes).
These houses are selling on the premise of continued tourist trade booming.Cairns has one of the lowest wage systems going around. NO PENALTIES for Saturdays and Sundays. Monday pay for any day.
Hourly rates of $13.80 for a tradesman. A waitress told she's on sixteen dollars an hour. But she on a broken shift, starts at breakfast to lunch, finishes. Then returns for the second part of the evening/night.The major ship building in Cairns closed down. So you only have the airport and tourisum for a possible work opportunities.
Not a pretty picture from my point of view.So what's next ????? MELBOURNE !!! Yes I'm off to Melbourne.
bruham.
Forgot to mention south of Cairns, three times as many houses are being built. Although they are a few dollars cheaper.Sounds like there might be some cheap properties coming on the market in a year or two.
I think you dramatically oversimplify the Cairns labour market.
While there are low income earners in Cairns: many working in hospitality at award or even below award rates (Offset by being on holidays, and often enjoying using backpacker accomodation or low rent inner city sharehouses), they are not the mainstream employment: Cairns wages might not compare to Sydney or Melbourne in some areas (eg finance and big business), but others would exceed southern wages (Eg some trades.)
Not to say there aren't other low income earners, who like those Australia-wide, feel the squeeze with rising house prices and gentrification.
But most workers in the city and region are on "normal" salaries: remember police officers, teachers, nurses etc salaries are pretty standard statewide. Other industries and the private sector tend to keep pace with these. These people find Cairns somewhat expensive compared to a similar regional city but similar/cheaper than capital cities. The find the excellent lifestyle more than justifies living here and paying the cost of housing.
Add to this many baby boomers choosing to sell their Sydney (or Brisbane) homes and retire up North for the warmer weather (and increasingly because we are allowed to use hoses LOL).Clearly, the Cairns Market is hot (and has a history of booms/busts) but barring major threats to tourism (which are possible) there is no guarantee of a bust as you suggest. Migration and a strong economy continue to maintain pretty steady market growth (single figures for the last couple of years) and its forecast to continue.
Look on the bright side
G'day zenq,
You mentioned that Sydney and Brisbane are dearer than Cairns, well in some cases Cairns is as DEAR. In Manly on Sydney's northern beaches, a home unit over looking the beach sells for one point 2, 3 , million dollars.
Today i checked out a three bedroom "apartment" over looking the "lagoon" on Cairns water front. The building is bring marketed as the Trilogy complex. Four blocks of units of eight or nine floors.
Price one point 2 million dollars, for a three bedder. And nothing special.How can Cairns expect prices like these ,when it's only got tourists ?
I also went through many new and old suburbs trying to find a bargin. not a hope in hell.Go to Cairns beach suburbs like Trinity Canal, there are blocks of land selling for 800,900,1 million dollars a block.
Some smart property investor once said that you can't be serious about investing in rural towns. Capital cities are the way to go.
One slight hic-up and it could be "curtains" for you.L.A. AUSSIE,
I see properties in all parts of the U.S.(on the internet) and i'm inclined to jump an aeroplne I come for a look.
It looks very inviting.bruham.
hhmmm – this is an interesting post. I've been looking at Cairns and compared to Perth it's quite attractive – though i guess you could say that about most other states!
The rent returns seemed quite reasonable, though I guess this is because Cairns is more of a "volatile" region/city.
Hey Bruham,
there was another 5.00 news report yesterday on the spiralling upwards numbers of foreclosures over here.
This is all the backlash of the A.R.M loans (Adjustible Rate Mortgages) that were all the rage during the boom that ended last year, as well as the recent interest rate rises and the ones still predicted to come.I think in the next 12 months will be a good time to come over and do some shopping.
G'day L.A. Aussie,
The news over here is all about LOW DOC loans going belly-up in the U.S.
Seems to me it's just too easy to stretch the truth when you are going to borrow.
Me, I'm at it all the time.
I'm half way through building two full duel (dual ?) occ.constructions. To fund this project i had to borrow on a low doc loan. And the loan claim, to my actual income, was MASSIVE !
I hoping to sell one full dual occ. so this will bring me back to no debt.
This might allow me to look at the U.S. markets.Waynel2,
Don't get me wrong, i love Cairns. The weather wasn't the best, but bad weather of 25 degrees is nothing to bitch about. "T" shirts and shorts weather with some rain.What worries me is that every man and dog are up here building housing estates all over the place.
I struck one of you "sandgroppers" here. He's building thirteen hundred house sites, starting next month. Cheapest block is $130,000 the average price is $145,000. The land is on the low side of Smithfield.Land on the high side of Smithfield, by another developer is $220,000.
The "sandgropper" is bragging about him being W.A.s largest home builder. Goes by the name of Slatterey Property group.
This site is not in the previously mentioned 2,000 sites or the 500, or the 300 building sites etc.Remember I'm only looking in the northern suburbs of Cairns. These the better areas of Cairns.
My brain keeps telling me that the only industry that is keeping Cairns alive is tourism.
THAT'S THE PROBLEM.
I would live there tomorrow given the chance. Which could be soon.bruham.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
