YIKES! Keep an eye on CAIRNS!!

Discussion in 'Where to Buy' started by JenJen, 22nd Aug, 2013.

  1. JenJen

    JenJen NQ Buyer's Agent

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    I don't know if many investors are aware of the huge Aquis resort development application underway for little old Cairns, but it's too MASSIVE not to share. :eek:

    Of course I do have a vested interest in the whole region, which I am happy to declare, and I'm sure other investors have as well! I wonder how this will impact on property and insurance in the region if it goes ahead?!!
     
    Last edited: 22nd Aug, 2013
  2. Prop_Perspectiv

    Prop_Perspectiv Member

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    I'm interested in Cairns, always have been but have been too scared to actually do anything about it ;)

    I'll keep an eye out for your updates! May flag Cairns for the next after next :)
     
  3. chrispy

    chrispy Member

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    Woohoo at last my townhouse at Yorkey's Knob will reflect its real value including the upgrade I did!!!!!

    The only problem is I love the way Yorkey's is now, its a real residential area. I hope this doesn't spoil it.

    The beach is something else...that walk to the end where the mangroves are is fantastic.

    I am a member of the Boat Club...wonder if they will put the fees up????

    Thanks for sharing Jen

    Chris
     
  4. DEC

    DEC Member

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    Interesting stuff and I have seen first hand some of these massive projects happen in other parts of the world where the claim was for wealthy Chinese flocking to the Casino's, but it never really happened.
    I think part of the problem is that Maccau's casinos are so much closer than a 10 hour plane flight away.

    Interesting comments being made here http://www.hillbillywatch.com/2013/08/aquis-great-barrier-reef-resort.html
     
  5. jaspn

    jaspn Member

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    Lol, I wonder what ML has to say, considering her experience with Cairns!
     
  6. JenJen

    JenJen NQ Buyer's Agent

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    O.K. just to clarify... I don't actually know what the impact of this might be for Cairns, and I welcome your comments.
    I grew up in Cairns, and was witness to the 1980's influx of Japanese investment in Cairns that saw massive tracts of land bought up and turned into golf courses and resorts, only to be left defunct. Trinity Beach, Palm Cove, and Port Douglas were developed to the hilt, and left floundering when Japanese investment and tourism dropped. Port Douglas in particular suffered. As a local, I have seen it go from GLOW to WOE. The development in question is seen by many as reminiscent of a very similar previous development proposal that failed due to it's environmental insensitivity. This one looks to be different, but is none-the-less controversial due to the massive scale of it, particularly to locals who have bought into the area for it's low key village appeal. I know, for example, that the local Kite-surfing community will be fairly devastated. As will many of the locals. Cairns is likely to be targeted in the future by the retiring baby boomers, but what impact would such a development have on the area?? From experience, many locals do now not bother actually visiting the local attractions as they are overwhelmed with tourists. So in terms of the local impact, I just don't know. The recent 'iron-man' triathlon brought the city to a complete stand-still, so I find it hard to imagine the impact of a development of this scale in the sleepy village or Yorkey's Knob. I don't question that Cairns could do with an economic injection, but remain ambivalent regarding the potential impact should the development go ahead. Also, what is the likelihood of it being given the green light, given that it's directly under the flight path. What do you think?
     
    Last edited: 23rd Aug, 2013
  7. datto

    datto Member

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    I remember when I went to Cairns for a holiday (before the Casino) and I found the place somewhat boring really.

    I remember staggering off the Sydney to Cairns flight blind drunk on Saki. The plane was chockers full of Japs.

    Did the Daintree, croc shows etc. Hired a car from the main street and had a sticky beak around. I noticed the beaches looked dirty. Did a spot of fishing but was always scared a croc was about to jump out of the water.

    Haven't been back. Never really looked at Cairns from a property investment point of view. I could be wrong and sometimes am.
     
  8. chrispy

    chrispy Member

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    I was chatting to my Agent in Cairns and he sees it having a better than 50% chance of going ahead.

    He also said:

    These guys are proposing a multi- billion dollar development and are very aware of all their requirements.
    The State Government has prioritised the project, Local Council is behind the project as well and there is overwhelming support within the local community.
    Council has even appointed external contractors to follow the project so there is no lost time with other developments in our region being held up due to a lack of local council manpower.
    All in all a very exciting project which hopefully will come to fruition.


    Chris
     
  9. JenJen

    JenJen NQ Buyer's Agent

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  10. see_change

    see_change Apprentice Timing Lord

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    So chris

    If you were looking at cairns at the moment , where would you look , what sort of properties ?

    Cliff
     
  11. chrispy

    chrispy Member

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    Cliff

    I would be looking for houses on large blocks at Yorkeys. Currently there is a shortage of houses for rent. My PM tells me as soon as one comes on the rental market its gone, that is right across Cairns.

    I believe that if the development goes ahead employees will be looking around Yorkeys Knob, Smithfield, Trinity Beach etc., for rental accommodation . Plus James Cook Uni is close by. My townhouse at Yorkeys is let to students at the University.

    Houses on land that can be subdivided in future is the way to go, I believe, but that is just my opinion.

    Prices are very low at the moment but don't forget the high insurance, strata body fees and rates.

    Chris
     
  12. Risky Business

    Risky Business Member

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    I don't know Chrispy.

    I like Yorkeys Knob and wanted to find the right house there as it was close to the boat ramp.

    If this schindig goes ahead, I don't think Yorkeys Knob property owners will be a huge winner. I would think the greater area will feel the totality of the affect without the likelihood of negative impacts.

    I actually think Yorkeys Knob will be a little ruined once it loses its casual waterside feel. I guess some increased shopping/food options will become available but at the cost of a lot of transient carless workers living nearby. I think rentals will be real tight there but I'll be happier to be driving to the boat ramp every now and again rather than living amongst it.

    They're just my cautious two bob thoughts.
     
  13. chrispy

    chrispy Member

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    Risky

    You are right for a PPOR Yorkey's probably will be over commercialised. I love the quiet residential feel of it currently.

    However, as an investment it is a different situation. That is what I am talking about and it is what Cliff was asking. As you say, the rental market at Yorkey's would be tight, which is what we are looking at, buying for rental and for yield. A tight market results in higher rents and as you say some workers will be car less, putting pressure on rentals in Yorkeys.

    I also agree it will have an overall effect on Cairns. The market is starting to recover but has been very low up until recently, some of the prices of the townhouses and units are below replacement value. The problem is the high cost of rates, strata and insurance.

    Chris
     
  14. JenJen

    JenJen NQ Buyer's Agent

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  15. NOT 2 L8

    NOT 2 L8 Member

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    Lng

    What effect, if any, has the PNG LNG plant had on the Cairns market.

    I spoke to a Northern suburbs RA a couple of days ago and he said that the rental market was getting very tight and that the PNG gas development was impacting the market. He indicated that he has already rented a couple of properties for circa $900/wk.

    I have tried to find info on this without any luck.:confused::confused:

    I have a couple of IPs in the Trinity area which I am considering selling but he advised me to hold for at least another six moths as he anticipates values to increase by up ti 15% by then.:eek:

    Anyone with some gen on this.

    Cheers.

    Chrisv.
     
  16. jusm

    jusm Member

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    Well I love Yorkeys with or without Aquis and with the near neutral cash flow on the 4 x 2 I bought today i cant be happier! Aquis would be a 5 year rental dream bonus however it stacks up well without it as well.
     
  17. JenJen

    JenJen NQ Buyer's Agent

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    Well done. That's very exciting!! I agree, Yorkey's is lovely just as it is. It's a fantastic kite-surfing spot as well ;-)! Plus an increasingly popular destination, with or without Aquis!

    Cheers

    Jen
     
  18. Risky Business

    Risky Business Member

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    Well done JUSM. Hope you got a winner.
     
  19. jusm

    jusm Member

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  20. chrispy

    chrispy Member

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    As an Owner in Yorkeys Knob I received a letter by email from the Developer and one from the Boat Club. Both asking for support for the development and support for the development of the Cruise Boats using Yorkeys.

    With the change of Federal Govt we really do not know now how the Foreign Investment regulations will be amended.

    Chris