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From: Debra L
A colleague of mine has been looking at purchasing a unit in Cairns for holiday letting. The marketing agent seems to be keenly following him up, with new newspaper articles etc. that depict the benefits of Cairns as an investment spot.
Having read through the paperwork, they are projecting an income of around $523 per week, on a unit costing around $260K, and of course their charts reflect a 52 week occupancy rate. With the annual Body Corp/ Mangagement/ Cleaning charges etc hitting a massive $14K per year, without taking into account the interest paid on the loan, it seemed that any capital growth that may be achieved would probably eaten up in fees.
To my question though, for anyone who is familiar with Cairns. What sort of occupancy rate would you expect to be more realisitic? How many weeks of the year would you expect to be vacant. Worst case figures would be preferred.
Also is there an over supply/ under supply of holiday letting units in Cairns?
Any feedback would be appreciated.
Debra
A colleague of mine has been looking at purchasing a unit in Cairns for holiday letting. The marketing agent seems to be keenly following him up, with new newspaper articles etc. that depict the benefits of Cairns as an investment spot.
Having read through the paperwork, they are projecting an income of around $523 per week, on a unit costing around $260K, and of course their charts reflect a 52 week occupancy rate. With the annual Body Corp/ Mangagement/ Cleaning charges etc hitting a massive $14K per year, without taking into account the interest paid on the loan, it seemed that any capital growth that may be achieved would probably eaten up in fees.
To my question though, for anyone who is familiar with Cairns. What sort of occupancy rate would you expect to be more realisitic? How many weeks of the year would you expect to be vacant. Worst case figures would be preferred.
Also is there an over supply/ under supply of holiday letting units in Cairns?
Any feedback would be appreciated.
Debra
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