Cairns buying trip

Partner and I just got back from Cairns yesterday after three days (got to love the hudimity :) ).

I would like to thank Chris Gay from O'Connor and Gay Real Estate. This man was honest, followed up on all our enquiries and gave some great advice. He even went and inspected another duplex we wanted to make an offer on with another agent from a different company. If you are interested in this area IMHO I would feel VERY comfortable with recommending him to anyone. No BS, and fantastic local contacts. Val, his PM, is also very nice.

Catherine Graham from LJ Hooker Edge Hill was also a blessing. Very helpfull, prompt with follow up, and also no BS. Catherine is also good for a call IMHO. Nothing was too difficult for Catherine, young agent that will go far! Catherine has some good listings too.

The big problem we faced was the principal from C21 McLeod St, opposite Myer Central shopping center. No idea, very rude and honestly no idea what customer service is. Hung up on us twice. Did not know land sizes and basic information on property he was selling (I honestly do not know how he makes a living).

We looked at a couple of properties with his Junior and were very interested in one at Woree but when we asked for the rental apprasials in writing he would not do it. Happy to verbally state "you could get $20 - $25 p/w more than currently rented for" but not prepared to give written appraisal, even tho' his PM had inspected the property. Could not arrange inspections and would not follow up on ANYTHING. We only had a couple of days so we needed info fast, and, needless to say, accurate. Impossible man whom I hope gets his just deserts when the FNQ bubble bursts. Even if his property represented good returns, could not bring myself to buy thru him.

Max Smith (Plantown Pty Ltd) buliding inspector is worth every cent you pay him (and it's not that much) and he is VERY accurate and finds things I could not. Max is also filled with local trade contacts. Nice Guy.

I will most probally get hung for this post but so be it. Tony from C21 is a gumby and any one considering buying in Cairns should be very aware of his unprofessional attitude, tricks, and lack of even basic courtesy.

There has been a lot of interest expressed by members of this forum about Cairns region, hence happy to share this info from a couple of days ago. We also have researched this area for some time, prices have increased substantially in the past 9 months. Still, 7% returns are attainable, and I believe capital growth will now be steady, but not explosive, as seen in capital cities in past 12 months. Presentable properties will always rent ok.

Annual pest inspections are a MUST as termites thrive in the hot, wet, humid climate.

A good PM is a must also.

If you go for a look, Esplanade is lovely after its redevelopment, Nthrn Beaches very nice, but do drink lots of water, particularly at this time of year, as my partner almost had heatstroke.

Happy to pm contact no.'s for good people mentioned, if requested.

Regards

Brojac
 
Brojac,

good post. Can I ask some questions if you have time to answer them (BTW, I think good straight honest no BS posts like yours are acutally helpful, forget the A-- covering!)


- what end of the market did you look at price wise?
- what areas?
- what is your personal assesment of where the market is up to (ie peaking, another 12 months to go, overvalued etc)
- what major developments, trends or whatever are occuring around there that might impact the market?
- any idea of rental demand?
- do you know what price 2 br units (older style) start out at?
- any suberbs (that are not super exy) that you would recommend checking out?

I hope you get time to respond to some of these questions - thanks a lot.

Timbo
 
Hi Tim

We were not strictly looking at any price range in particular. We have bought at sub $200k and just over $250k for 2 x 2Bed duplexes. Returns were the most important to us. All over 20 years old.

We looked at all areas in Cairns but not the beaches. People are a little funny up there, 5 mins out of town is a little too far for them to travel on a daily basis.

We bought in Edge Hill and Manunda and have an offer in at the moment in around the Edge Hill area. We had a look a Woree (outer) and Paramatta Park (very close to the city) but the agent was the problem here not the area or the Cane Train that goes through the Woree area. In general anything that was in the Cairns Central area was of interest. I am a big fan of land so mainly Duplexes and the odd house or two.

I think as properties are not in over supply, and good properties are hard to find, the market in Cairns has a couple of years left in it especially considering the returns you can achieve. Its amazing how easy it is to get extra return by simply, and not expensivley, installing a couple of window airconditioner units. A must to keep tenants in the Cairns area. There is solid demand for good property from buyers.

There is a number of expensive ($300- 500k) plus units on the go and in the planning stage at the moment in Cairns. Some major developments and sub divisions also. The northern beaches are powering ahead but I do not like the chances of renting them at the returns we require. There are also a couple major shopping centers going into the northern beaches areas, Coles and the like.

I believe if you provide tenants with as much life style as you can afford, keep the place is neat and tidy (fix any little problems your tenants find as quickly as possible, as necessary) and you will always have tenants providing you have a good PM.

Units start at $80k, I saw a Town houses at $120k (return on this was 7% net) but as mentioned earlier I like land so a duplex or house (and there are a couple of them out there) is the right property for us.

Look at the location of the property you wish to purchase in relationship to what it provides your tenants. Ie Schools, shopping, video shop, city etc. I would recommend the older Edge Hill area and around there. I feel coomfortable to recommend this to you as you will not go wrong due to the captial growth and return potential of this area.

Contact Chris in a couple of weeks when he gets back from holidays or Catherine now. Say Tim and Robin said hello.

Regards

Brojac
 
Yeah!
An offer we put on another duplex in Whitfield has been accepted!
More like two houses then a duplex as no dividing walls ect.
Good return and regarded as one of Cairns best burbs.
Regards
Brojac
 
Originally posted by Brojac
Yeah!
An offer we put on another duplex in Whitfield has been accepted!
More like two houses then a duplex as no dividing walls ect.
Good return and regarded as one of Cairns best burbs.
Regards
Brojac
Of course Whitfield is a good suburb- with a name like that :D

When MrsW was pregnant for the first time, when we were in England, we saw the sign "Whitfield 2 1/2". Very appropriate.
 
Hi Brojac,

Did you have a look at a suburb called Edmonton?
I am looking at a t/house their.
Any info would be great.

Cheers
kidders
 
Hi
Edmonton is a fair way out of town. There is a new shopping center near there with a coles in it. There is a new development going on around there also. Did not look at anything specifically around there though (due to its local).

Thanks Asy for your kind words

Regards

Brojac
 
Originally posted by Brojac
Max Smith (Plantown Pty Ltd) buliding inspector is worth every cent you pay him (and it's not that much) and he is VERY accurate and finds things I could not. Max is also filled with local trade contacts. Nice Guy.

I too have used Max as an inspector and agree he was worth every cent, and more. I`d not hesitate to recommend him.
 
i'd go for forrest gardens before edmonton. If you are after capital gains, locals semm to think central and northern cairns beats the south in terms of a nice place to live. The south is quite different to the city/north/west (eg freshwater, brinsmead, kamerunga).

I personally quite like gordonvale (even further out than edmonton) since it has quaint miners cottages in the old village with the old railway and pub etc. Also the one acre properties in gordonvale are nice too, as are the village and acre blocks a bit further at little mulgrave and goldsborough valley.

Has anyone actually bought here?
 
i am not sure about the southern areas, maybe they are rentable and possibly have good growth aspects for the future, however cairns and its vicinity still has vast potential for growth...lots of large lots and big back yard, swimming pool potential or subdivision, block of flats. The premier suburb Edge Hill, Parramatta Pk North Cairns.....Northern beaches trinity and Palm cove and inbetween. North of Cairns and inland of the esplanade 2km inclining towards the coast as you head north are the hot spots for life stlye and that of which attracts tourists and where they want to stay. As a resident and those who want space for price maybe the south is viable.
 
whitfield

Hi brojac,

We are currently looking to buy 2 x 2 bed room Duplex in the whitfield/edge hill area. We are currently negotiating one. If it is not a problem for you could you please advise what price you paid for your duplex in whitfield. This would give us an idea what to target in our negotiation.

Thanks

Daya:)
 
Back
Top