QLD Cairns and surrounding areas

Discussion in 'Where to Buy' started by DropBear, 27th May, 2019.

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  1. DropBear

    DropBear New Member

    Joined:
    27th May, 2019
    Posts:
    1
    Location:
    New south wales
    Hey all!

    Long time lurker looking to make a move within the next year and have recently been more and more interested with buying in cairns.

    However I am hardpressed to find any solid information in regards to the area.

    I have a few questions that I'm hoping some may be able to help me with.

    Firstly the insurance prices, do these ensure that the property cannot be positively geared? I've heard they are quite high.

    Also what areas are worth looking into? I've been to cairns twice amd was always been interested in yorkeys knob, Edmonton also is appealing.

    Just interested if anyone has any experince investing up there. Or had any local knowledge

    We will most likely have a 60k deposit and this will be our first investment. Our goal is to buy and hold for the long run. Perhaps even dual occ. We do want to reach financially freedom or be on our way to it in the next 10 or so years and cairns does look appealing.
     
  2. Cate Bell

    Cate Bell Well-Known Member

    Joined:
    7th May, 2019
    Posts:
    221
    Location:
    Australia
    What do you find appealing about Cairns? Tourism is the main driver, it booms and busts. I don't know anything about the insurance prices (but it would be high due to cyclones), there are some nice spots in Cairns, but I haven't seen anything that makes it good for investment. Low salaries, high unemployment. I would be looking at a house in Brisbane for capital growth
     
  3. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,022
    Location:
    QLD
    I would subscribe to this newsletter to give you an idea of what the local market is like:

    HERRON TODD WHITE CAIRNS | CAIRNS WATCH

    There are plenty of threads here as well.

    While I have a ppor here I would suggest it might be a better bet currently looking at Brisbane for a first IP. The first one needs to grow strongly to give you a capital base to expand further. Yields are generally much better in Cairns than Brisbane but you need to really consider the higher holding costs.

    Edmonton is cheap but the suburb is oversupplyed and only attracts those who cannot afford to buy in other areas. Not a great recipe for growth. OO suburbs with higher median incomes would be preferable.
     
    27649 likes this.
  4. Greedo

    Greedo Well-Known Member

    Joined:
    17th Aug, 2017
    Posts:
    282
    Location:
    Cairns
    The insurance and holding costs of Nth Qld property is really overblown on this site. I live in Edmonton and have an IP in trinity beach and one in Moreton Bay. The insurance is only $1k more and rates/water are the same. It’s not what makes or breaks cashflow especially given gross yields are higher here. I find holding cheaper than Moreton bay. Apart from how much leverage you have which is the single biggest factor, maintenance can be the killer which can really vary year to year. Also I don’t have a land tax expense but assume that would have a bigger impact than the extra $1k on insurance. Doesn’t look like that’s an issue for you.

    That said I am not advocating buying in Cairns one way or the other. There are many more people with much more than experience than myself in the site and plenty of threads to look through. Final thought, I would not buy in Edmonton unless you know the area. What @HUGH72 said is right. It’s a big area with some fantastic pockets which back into rainforest easements that you would pay much more for elsewhere.
     
  5. 27649

    27649 Well-Known Member

    Joined:
    6th Jul, 2020
    Posts:
    191
    Location:
    Rockhampton
    Edge Hill or Whitfield would be a great place to invest and live. Established leafy green suburbs with great amenities and lifestyle.