All Topics / Help Needed! / Brisbane or Cairns
Trying to decide which area would be best to purchase first investment property. Brisbane seems to be primed for future capital gains but Cairns seems to be great rental returns considering the prices, but unsure whether Cairn’s prices will rise given a lot of properties I have looked at are at a similar price to what they were 10 years ago and half of what they were 20 years ago.
Hi Nanny,
Previously all of Cairns’ eggs were in the tourism basket but the council has come to recognise this and the economy is slowly being diversified which will help stabilise the prices. The GFC also hit the area hard and now prices are just starting to recover where they’re coming off a very low base but certain suburbs are showing good performance where growth over the past 12 months have been in the double digits.
Also with Aquis being put on the back burner for the time being I think there will be a slight flood of new stock on the market on the Northern Beaches in the new year which were the people hedging the bets and waiting till what they were hoping was going to be a positive announcement.
You’ll find though with the rental return some of that extra cash is taken up by things that are of a higher cost than what it would be down south with insurance as an example. In saying that though, there are some good buys here at the moment with decent returns even with the higher costs.
Brisbane is more of a stable market with an already diversified economy which, as a whole, is sitting a bit further ahead on the ‘property clock’ than what Cairns is. There’s a lot more markets within Brisbane and it would depend on your entry point $, strategy, risk profile and long term goals as to what would be more suitable.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
Hi NannyC – Kinnon’s definitely the expert on the Cairns market with a wealth of valuable inside knowledge.
Regarding Brissy – it does seem ‘primed’ for growth. Investors are flocking there away from Sydney. With next to no growth over an extended period, it really does seem to be the ‘market’ to be in.
Note that Brissy doesn’t quite have the supply side issues Sydney does – so the ‘pace’ of growth may be unlikely to match Sydney’s heights.
If you dig around these forums and SS, you’ll see lots of valuable info on the Brissy/Cairns markets.
Cheers,
RedomRedom Syed | Confidence Finance
http://www.confidencefinance.com.au/
Email Me | Phone MeHome Loan Specialists based in Sydney, serving clients Oz wide.
Hi nannyc
Any particular reason why you’ve honed in on these markets?
Personally – I’d opt for Brisbane over the two due to stability as Kinnon as eluded to above.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.