Page 22 - Tropic Magazine Issue 13

INDUSTRY • REAL ESTATE

THE AGENT’S VIEW to 2007 interstate buyers would just Renting vs owning
call our office and ask what we had
Nicholas Slatyer from available and buy over the phone. Adam Gowlett from David McCoy
Belle Property Cairns Conversely, during the southern
property “boom” of the last few years Homes weighs up the merits of
FY18 finished with a bit of a bang. we never saw the expected rush of home ownership vs renting in the
We were lucky to get our third sale investors tempted by our low prices current Cairns market.
over $2 million for the year done, and strong yields.
and generally Belle Property Cairns Units in Palm Cove is one market Cairns has experienced a low rental
is humming. It’s always amazing where most of our buyers actually vacancy rate for a number of years and
to see how infectious a good run are interstate investors. Although rents are slowly rising. Many families
can be on the whole mood of the prices have firmed and steadied from
office. An extra spring in the step, the near 50% discounting we once would probably find they would be
greater urgency in your voice, more saw, you can still buy some very, very better off buying their own home now
enthusiasm to get the job done when cheap property. There has been quite rather than renting. Our city’s low
you are seeing the result… people a bit of talk about banks tightening vacancy rates, low numbers of investors
can sense it when you are “on”. their lending criteria and, again, in the market and steadily rising rental
Imagine the whole market doing that we aren’t really feeling it too much prices all contribute to making buying
at once and you get a sense for how generally ...except in Palm Cove. Most a better proposition than renting.
a busy market self-perpetuates once bank policy is to lend a maximum Plus, most economists are forecasting
it gets on a roll. of 60% on any unit that is a “holiday sustained low RBA cash rates. For those
It’s still a market of highs and property” – that is, managed for short looking to enter the property market,
lows though. I saw an opinion from term rental (regardless of whether make sure you get some sound financial
another agency in Cairns that the you can live in the property according planning advice and shop around.
Sydney-Melbourne downturn was a to CRC). That means that $500,000 Budget for a bit of interest rate growth
“hot topic” for buyers and that it was will require $200k cash + stamp duty. and be prepared in advance that some
influencing their buying decisions That’s a lot of outlay on a relative of those interest rate rises might be
in Cairns. We just aren’t seeing that small investment. occurring outside of any movement
at all. What is to come for the second half from the RBA.
Our office tracks the origin of of 2018? I suspect generally more of
our buyers (local, intrastate or the same. Stable and steady mixed
interstate) and as I have told every with some strong results and fewer
seller I meet for the last handful of distressed sales. The premium end MAY 2018
years; the majority of our buyers are of the market will probably perform Median house prices
local owner-occupiers. Yes, there the best. I expect an increase in sales
are interstate buyers, but they are over $1 million and we already look
an absolute minority (and picking like sales at $2 million across greater
the eyes out of what is available). Cairns to be a record year.
Likewise, we have investors, but they
are thin on the ground. From 2003 MORE: belleproperty.com/cairns Sydney Melbourne Brisbane Cairns
$871,454 $717,020 $494,038 $403,000

Industry goes Over the past 15 years, Karen has developed
a passion for the lifestyle and investment
commercial opportunities on offer in the Cairns
commercial property sector.
Experienced commercial agent According to Karen: “The core of The
Industry Commericals’ philosophy is
Karen Stabile has joined forces identifying and meeting client needs and
with Megs Walker to launch creating solutions with a point of difference,
The Industry Commercial, brought about by impeccable knowledge,
a new business under The state of the art technology and most of all MORE: industrycommercial.com.au
the style and flair to bring about a successful
Industry banner. conclusion to any property transaction.”

22 • Tropic • Issue 13