Cairns?????

L

Lealea

So there has been a little hype about Cairns and it may (and I do say may!) be on the move up, especially if the new casino is built. However the new casino has not been built yet and there are no guarantees that it will be. So is it a good investment opportunity or not. Looking at a one or two bedroom unit close to the city for around $195k. Does anyone have any thoughts on the matter?
 
Everywhere it seems is seeing some movement. Pent up demand since GFC. the AUD being lower favours tourism. Tourism numbers are up. So I do see some positives but not really that many. Good sound substantial growth though is not a bad thing. just slow :) As for apartments please search other threads for Cairns. Insurance and rates are so high from property rents barely cover the expense. Research that issue thoroughly.

AQUIS does me head in. I am not sure that people line up to live near a casino. I have read and read and it is very mixed. However it may not hurt property values or it may hurt them but cannot find anywhere a casino increases property value. I want it to but no real precedence exists. So some risk on that score. I see no fundamentals but emotions can motivate more than facts at times. DYOR I do not think anyone can really say.
 
I tend to agree with doozer. I got rid of a house in Cairns last year and a block of land in a top area with great city views a couple of months ago. The block took much longer then 2 years to sell. When land isn't moving up there cairns just isn't doing well. I won't be back in a hurry to buy in Cairns but keep your eye on it if you like cairns. And, usually Cairns does well when all the other states have. Also, keep an eye on he sales figures (demend) when they go up significantly price will follow eventually but, I think we're well and truely in the big slup in Cairns. Any movement now in sales may not last long.
 
Hi Lealea,

Make sure you factor in insurance costs as op has pointed out.Add on BC costs,rates,agents fees etc etc.

I'd buy something without a pool,lift etc.

Not sure how a casino is going to lift things in cairns but good luck with whatever you decide.

Cheers Spades.
 
One doesn't even need to look closely to see that there is heaps going on in Cairns.

Posted below is just one article that indicates what is happening, and there are many other examples I have posted elsewhere. It's definitely not in the 'doldrums'. Yes, it got hit hard by the GFC, but it is now officially moved into recovery (Herron Todd White market indicators). If anything, Cairns has invested a lot of energy diversifying its economy and securing it's future because of the fact that it took such a hit. Among other things, consider:

Infrastructure spending
Population projections
Mining projects
Links with PNG, and Asia
Tropical expertise, medicine etc
Baby boomers
Education and international students
Sporting destination
Conference destination
Cruise ships
Agriculture
Asian food bowl
Renewable energy
New flights
Northern Australia policy
Downward pressure on insurances

There is also plenty of data that indicates that across a number of suburbs
rents are up
stock on the market is down
auctions rates are up
days on the market down
number of sales up
prices up

http://www.cairnspost.com.au/lifest...tantial-deposits/story-fnjuflgv-1226787775724

Terry Ryder has also written about it recently, which I have posted on another thread about Cairns.

Cheers

Jen
 
I've mentioned it before but Cairns doesn't seem all doom and gloom like I've been at previously. This place has a vibe that things are looking up. In my opinion, it has a flow on effect via media and average joe. I'm sure a lot of other places are starting to feel that way as well though.

As Jen says, big projects are looking hard at the place. Even the little things. New flight route from Bris to Cairns with Tiger.
 
Woree drive in land is starting to be developed after years left overgrown with weeds. Bit by bit, in stages, and I think that illustrates what is happening overall. Baby steps, no grand plans aside from AQUIS. Most infrastructure projects are finishing. Ryder talks of the performing arts centre and we know that will not happen. Dredging has a ? over it. The more distance since the last cyclone or financial crisis the better for Cairns. Lower dollar good, lower AUD good. High defaults rates on mortgages reported and also retailers in the city closing shop. News is mixed. Better than before when it was all bad. :D

Ton of hype at the moment surrounding AQUIS. We were talking about it the other day and after rebuilding Yorkeys in our imagination with restaurants, family accommodation, flashpackers, markets we realised it could potentially suck the life out of the rest of the city. So instead of adding value, just transfer the centre and cannabalise other business. Others were grumbling about the same issue when the local pollie went to the media and predicted 10,000 people will move into the CBD in the next few years. No explanation why so I question. No fundamental reasons offered. Maybe knows something nobody else does?

AQUIS will cause some boom in building but in 4 years we will have 10,000 unemployed construction workers and be at the mercy of a highly volatile industry once again. I think if approved I will be selling when building is underway, not buying. Too risky for my sanity. If I was to take a risk I would see what Yorkeys had to offer than could potentially be rezoned for tourism or commercial use. I would not touch anything south of the airport.
 
I once met a rather large woman in the park at Yorkeys, Dolly. She was drinking her favourite drink, fruity lexia mixed with coke on the rocks - of course she called it a Dolly.

She introduced herself as "I'm Queen Dolly of Yorkeys Knob, bigger than Moby's Dick"

This was a good decade ago, and given her preference for a 5 litre cask I'd imagine she's not around now....
 
if you are looking to buy unit, please carry out enough DD!

Insurance, rates and Body Corporate fees can take a big chunk out of rental income.

IMHO, there are better returns for money elsewhere i.e( unit in western Sydney.may have to spend bit more than original budget)
 
Of course, insurance, rates, and body corp can take a good chunk if you don't know what you are looking for. However, they are not necessarily something that should put you off buying in a particular area.

Body corp is a generally a pain anywhere, and it's no different in North Qld. In Qld, units that have more than 5 in the complex are subject to the Standard Module, which is not ideal. Too much paperwork, among other things. Plus, Body Corp managers can charge excessive and unnecessary fees, so you do need to be aware. Personally, I would rather consider units with 5 or less in the complex, which can be administered under the Small Schemes Module. This means decision-making, fees etc can be restrained.

As for insurance, you do need to do your DD. As with anywhere, don't buy in a flood prone area. Make it your business to understand how to ensure reasonable premiums. Ask local agents, and get a quote from a good local insurance broker before you buy.

Please PM me if you need further advice.

Cheers

Jen
 
A guy from work has 2 IP's in cairns he has had them for around 7 years and seen next to no CG, He says he would rather everyone spit in his lunch than buy another one there.
 
Thanks for the comments (and to the original poster!) in this thread - I've been considering Cairns for some time now so it's great to hear of the infrastructure projects occurring there.
 
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