YIKES! Keep an eye on CAIRNS!!

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

  1. jusm

    jusm Member

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  2. Azazel

    Azazel Member

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    Sounds fairly realistic, I had my place revalued last month, it's increased just over 8% from what I paid under 12 months ago. Pretty happy with that.
     
  3. jusm

    jusm Member

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    I would agree that is the plan and that's how these things work. Mr Fung has certainly planted his roots with investments in Canberra, Gold Coast and Cairns though.
     
  4. Bran

    Bran Member

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    Great! Ill get mine revalued in about a month. I would love to pull some equity to buy again in Brisbane

    (Love poking the bear)
     
  5. Azazel

    Azazel Member

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    Go for it, hehe. As long as you know what you're doing. I just don't think it's a good idea for Southerners who aren't familiar with the different areas jumping in blindly.
     
  6. jusm

    jusm Member

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    God no.. It's certainly a different world up here, but that's the charm..
    What I have enjoyed ( coming up from Melb) is the quality and variety of seafood, the weather, the vibrancy of the esplanade and feel of Port Douglas, Kuranda etc. it's all quite unique.

    What you can't forget is the cost of rates, insurance, termite barriers!
     
  7. JenJen

    JenJen NQ Buyer's Agent

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    Hi

    For those interested, the latest Herron Todd White 'CairnsWatch' can be viewed below. Keep in mind that the data referred to here covers the broader region, as described in the first page of the report, so it's quite a different picture within the region and at the suburb level.

    http://www.cairnswatch.com.au/uploads/uploads/201505fullreport.pdf

    Cheers

    Jen
     
  8. Bran

    Bran Member

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    Thanks Jen. Looking positive from almost any measurable perspective.
     
  9. Azazel

    Azazel Member

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    Thanks Jen. Interesting to see they have Cairns as 'Rising Market'. Also interesting to see Tamworth, Toowoomba and Wollongong 'Approaching Peak of Market'.
     
  10. JASA

    JASA Member

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    Thanks, I have an ip for sale Daphne drive Redlynch rise cairns. Unfortunately can't wait for the property clock to tick to the top due to situation Im in but it's good to know the Market is on the move up there.
     
  11. Deltaberry

    Deltaberry Member

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    Funny this thread started in 2013. My relo's house for $500-600k worth $350-450k now.
     
  12. Kinnon Bell

    Kinnon Bell Member

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    What suburbs, db?
     
  13. hugh72

    hugh72 Member

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    Can you provide:
    Context? Suburb? Timeframe?
     
  14. Azazel

    Azazel Member

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    Did you get it valued? I'm interested, are they selling?
     
  15. Deltaberry

    Deltaberry Member

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    Not sure I will ask. They bought 2 and are very upset. I told them to buy Syd. Won't listen.
     
  16. beachy

    beachy Beachy

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    Deltaberry, your relatives must have bought in undesirable or unpopular areas as 5 years ago, that's $250,000 - $300,000 per property and worth today $175,000 - $225,000. Can't get too many houses in Cairns for $225,000 now, so I would challenge your "appraised opinion". No different from any other regional market - it has ups and downs. The Cairns market is on the way up - in fact, growth of 10-15% has been recorded in the past 15 months. 5% in the not so good areas.
     
  17. deejay

    deejay Member

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    I'm not who you replied to, but we're buying in Cairns and I could believe these figures if they relate to townhouses in the inner suburbs (which does fit the $250K/$175K equation).

    There are a lot of people in this area of the market who bought at peak (say 2010) who can't afford to sell because they owe more than the properties are now worth. We actually had two purchases fall over as a result. One was purchased at $260K and now worth $200K, and the other was $240K now worth $205K. The one we bought is underwater too - the owners bought at $235K and sold to us for $170K.

    From what I can tell, this is mostly a feature of the low end of the market, and not seen so much at the higher end. A lot of people who bought in Cairns in that 2010-13 era were miners working FIFO (this was the case for both of our crashed purchases). They didn't necessarily understand the market, they just knew they had more money than they'd ever had and they should invest it, and in Australia, when you don't understand investment, you buy property because (wrongly) it feels safe. And I think they pushed prices up temporarily for everyone - you know, offered asking price straight off, over-paid at auction, that sort of thing. And, when you don't understand investment, you panic when it tanks, and chase the price downwards and sell, when really you should probably ride it out (a lot of these little places are cash neutral now, even allowing for buying at a premium, although that's a function of interest rates). So they created an artificial boom, and now they're creating an artificial bust.

    Noting that this thread started with the AQUIS thing, though, I have my doubts how much this will change the market. At the end of the day, it just means more low-income hospitality workers. It will increase the pool of renters, but it won't change their profile much IMO. There might be a little mini-boom on rentals while it's being constructed, but I don't think it will change the fundamentals of the area.
     
  18. beachy

    beachy Beachy

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    Deltaberry said "My relative bought 2 houses there for $500-600k 4-5 years ago. They're worth $350-450k today"

    2 houses, not townhouses. Sure plenty of townhouses around in the $175,000 - $250,000 range now and 5 years ago. Different type of property. Unless Deltaberry meant townhouses, but Deltaberry did say houses, and bugger ol' houses for sale in Cairns under $200,000 now.

    Plenty of units selling well below original sale prices: - here's a few sold last month.

    Purchased for $340,000 - Sold for $225,000
    Purchased for $299,000 - Sold for $240,000
    Purchased for $193,000 - For sale at $60,000
     
  19. deejay

    deejay Member

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    I agree, which is why I suspect they may have been townhouses. The relative might not have spoken with much precision, and townhouses correlate plausibly with the financial figures stated, while houses don't. But I'm sure Deltaberry will correct me if I'm wrong soon enough.
     
  20. hugh72

    hugh72 Member

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    If DBs post related to townhouses or units its possible depending on when they were purchased, it has nothing to do with any mini boom. The unit price collapse relates to rapidly increasing body Corp fees as insurance premiums doubled or trebled over a couple years post cyclone Yasi. The market pricing for units adjusted so a 7-9% gross yield is effectively a 5% return approximately.
    House prices also decreased post GFC, this was more to do with a very weak economy at the time, high unemployment was a major factor.
    House prices have increased but the unit market is still very weak, if you can find one with low BC fees then it might be a suitable investment.
    I agree that the low end unit market does cater for a large number of low income people, as houses are still very affordable generally most higher income people would be OO as they can get a lot of house for their money unless they are on short term contracts etc
     
    Last edited: 14th Jun, 2015