Hi everyone,
Im after your thoughts, been looking at the idea of investing in a big old renovated Queenslander in Cairns(Parramatta Park), its close to the town center. There are a few in this area which have had the below renovated into multiple bedrooms taking the total rooms to around 7-9 then renting them out, there vacany rates seem quite small. Costs would included high electrity, water and rates but with all outgoings including interest on a 80% borrow it would be slightly positive cash flowed. So I'm after any pro's or con's that peolpe may know or experienced in an invesment of this type.
Regards
Robbo
The main concerns are ceiling heights and possible tidal/flooding – there are plenty of threads on converting queenslanders.
Hi Robbo
Im assuming from your post your after some cash pos stuff, Ive seen 2 bedroom units in Cairns which would be cash pos a on a 90% LVR after strata fees with out the dramas
I guess what I'm trying to say is there can be hassels running a share/boarding house, a couple of friends of mine ran 2, I was looking in to it myself,
but they said you always have a high turn over of tenants and you will always have a couple of rooms vacant (have you factored in that to your cashflow analysis),I did a quick check on rentals in Cairns there is pages of stuff I would check vacancy rates out first, also there is usually more maintence issues with queenslander houses.
Again it depends how hands on you want to be, do you live in Cairns ?? if you dont I wouldnt be running a boarding house from inter-state
Though I'm new to PI and have considerably less real estate experiance than everyone here I am from north queensland and have to say that cairns is one of the last places I would choose to invest in.
It has a tourism driven economy that is very connected to how high the aus $ is trading and how healthy the home countries economy is. Tourism driven places are in trouble on two fronts.
The pay rate for locals is low compared to everywhere else hence my moving to WA. Everyone hates them but I seem to see a definate trend around australia between pay rates and the strength of the union ie little to no union in nth queensland very low pay rates for the general public.
This has a direct effect on the local real estate market by pushing and holding down the rental price. Last I had heard about cairns was that the vacancies where high the prices were low(both to buy or rent).I agree with ten burner, if you dont live there I wouldnt be investing in a boarding house.
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