Buying an investment property in Cairns can be a lucrative decision, especially given the city’s appeal as a tourist destination and its growing population. Here are some factors to consider:

1. Research the Market

• Rental Demand: Cairns has a strong rental market, particularly for apartments or units in areas close to the CBD, beaches, or tourist attractions.

• Property Prices: Units are generally more affordable than houses in Cairns, making them a good entry point for investors.

• Capital Growth: While Cairns has had steady growth, it’s important to assess the historical trends in the area you’re considering.

2. Location Matters

• CBD and Surrounds: Units in or near the city center are popular with young professionals and tourists.

• Northern Beaches: Suburbs like Palm Cove and Trinity Beach are sought-after for their lifestyle appeal.

• Tourist Zones: Properties near attractions like the Esplanade may attract short-term renters or holidaymakers.

3. Rental Yield

• Cairns typically offers strong rental yields compared to other Australian cities. Check the average rent in the area to calculate potential returns.

4. Management Options

• Long-term Rentals: Offers stable income and less management effort.

• Short-term/Holiday Letting: Can provide higher returns but requires active management and is subject to seasonal fluctuations.

5. Additional Costs

• Body Corporate Fees: Units often have body corporate fees for maintenance of common areas. These can impact your cash flow.

• Insurance: Ensure the property is covered for both building and landlord insurance.

• Maintenance: Budget for ongoing upkeep of the unit.

6. Local Economy and Infrastructure

• Cairns is experiencing growth due to tourism, infrastructure developments, and its role as a gateway to the Great Barrier Reef and Daintree Rainforest.

7. Regulations and Taxes

• Familiarize yourself with Queensland’s property regulations, including stamp duty and land tax.

8. Seek Professional Advice

• Consult a local real estate agent to identify high-demand areas.

• Engage a financial advisor to ensure the investment aligns with your goals.