Hi all, I'm new here and trying to learn as much as I can. I am just about to buy my first IP and would appreciate some input. We have a suburb here in Cairns called Bentley Park, which is becoming very popular as the city expands past it, further south. There are still a few houses on the market for under 300K in Bentley Park, but they get snapped up pretty quickly. The one I am interested in is within walking distance of the school, shops, and public transport, so I think it will be easy to rent out at a decent price. My question is: would I be better off buying this one, an older house, or paying a bit more and buying a new house on a smaller block in one of the new developments further out of town?
IP in Bentley Park, Cairns
- Thread starter Denne
- Start date
Hi, welcome to the forum.
Bentley Park although popular with first home owners because of the lower purchase price doesn't attract a very high percentage of return on rental prices,
Why? supply vs demand, there is a huge amount of rental properties in the Bentley Park, Forest Gardens, Mt.Sheridan and Edmonton corridor, if you were to travel 7 or 8 minutes further on into Edmonton, you can purchase a brand new homefor roughly the same price as a 5 or 6 year old home in BP, and it will be on similar land size, and maybe a larger home.Alternatively a few minutes closer in Forest Gardens, a new home is also roughly the same price but on a smaller block. You need to consider your long term plan for the house, as a new home can attract more depreciation benefits than an older house.
Personally I buy closer to town, Manoora, Manunda, Westcourt etc, you can still find some homes for around $300k that will not only return a higher rent, but will also be likely to rent quicker and more often and also tend to attract higher capital growth.
This is my strategy, hope it helps.
Cheers.
Bentley Park although popular with first home owners because of the lower purchase price doesn't attract a very high percentage of return on rental prices,
Why? supply vs demand, there is a huge amount of rental properties in the Bentley Park, Forest Gardens, Mt.Sheridan and Edmonton corridor, if you were to travel 7 or 8 minutes further on into Edmonton, you can purchase a brand new homefor roughly the same price as a 5 or 6 year old home in BP, and it will be on similar land size, and maybe a larger home.Alternatively a few minutes closer in Forest Gardens, a new home is also roughly the same price but on a smaller block. You need to consider your long term plan for the house, as a new home can attract more depreciation benefits than an older house.
Personally I buy closer to town, Manoora, Manunda, Westcourt etc, you can still find some homes for around $300k that will not only return a higher rent, but will also be likely to rent quicker and more often and also tend to attract higher capital growth.
This is my strategy, hope it helps.
Cheers.
Hi Denne,
I lived in Edmonton for about two years (DHA house) and really liked the area. We had lovely mountain views etc, and the benefit was I only worked down the road. I actually rode my push bike down that big hill. ( was a bugger getting home though). The only down side that I can see is that even though it's only 12 km or so to the city, there is a bit of traffic on the main road, and can sometimes take a while to get to the CBD. I remember at the time we were living there, new houses were being built around the corner. The cheapest was a 4 bedroom 2 garage for 220K (2004) I wish I had bought it now
As you are probably aware, there are some not so desirable areas (like every city / town etc). It might be a good idea also to consider something a bit closer to the city in a good neighbourhood and try to bend some ears of members who are savvy with the Cairns market at the moment. I think there are a few on this forum that specialise in the region.
Phil
I lived in Edmonton for about two years (DHA house) and really liked the area. We had lovely mountain views etc, and the benefit was I only worked down the road. I actually rode my push bike down that big hill. ( was a bugger getting home though). The only down side that I can see is that even though it's only 12 km or so to the city, there is a bit of traffic on the main road, and can sometimes take a while to get to the CBD. I remember at the time we were living there, new houses were being built around the corner. The cheapest was a 4 bedroom 2 garage for 220K (2004) I wish I had bought it now
As you are probably aware, there are some not so desirable areas (like every city / town etc). It might be a good idea also to consider something a bit closer to the city in a good neighbourhood and try to bend some ears of members who are savvy with the Cairns market at the moment. I think there are a few on this forum that specialise in the region.
Phil
I agree with Cairns Agent. I think you would get a better return closer to town or choose a Beach suburb. You can get some great buys in Manunda or Manoora, as long as you choose carefully there are some excellent returns, plus there has been exceptional growth in these areas in the past few years.
Chris
Chris
Thanks for your input guys. You have given me plenty to think about! I did consider the Manoora / Manunda area at first, because it is also possible to buy houses under 300K there too, but I was worried about the crime rate in those areas .
Is the size of the block important for an investment property? Most of the new houses being built in the Southern Corridor developments seem to be on tiny blocks - many are only just over 400 square metres!
. Is the size of the block important for an investment property? Most of the new houses being built in the Southern Corridor developments seem to be on tiny blocks - many are only just over 400 square metres!
Denne,
I always buy as much land mass as possible! It is what appreciates in value (houses depreciate) and also gives you more options in the future, sub-divide, redevelop etc.
cheers
I always buy as much land mass as possible! It is what appreciates in value (houses depreciate) and also gives you more options in the future, sub-divide, redevelop etc.
cheers
Follow up...
I am currently putting together some growth charts for some of the Cairns suburbs, PM me if you want a copy and when they are done i'll email them out!
cheers
I am currently putting together some growth charts for some of the Cairns suburbs, PM me if you want a copy and when they are done i'll email them out!
cheers
