Cairns highest rental yields in Australia!!
INVESTORS are returning to the Far North’s unit market as a new report reveals Cairns has some of the highest rental yields in Australia.
Bank of Queensland’s Spring Guide, compiled with RP Data, finds the Cairns CBD, Edmonton, Westcourt, and Manunda are among the 12 highest in the country.
The yields of 13.8 per cent, 13.4 per cent, 9.1 per cent and 8.5 per cent compared to a national average of 5.5 per cent.
Bank North Queensland regional manager Brendan Jones said the high rental yields were complemented by cheap unit prices in the area, with median prices of $142,615 at Woree, $153,741 at Manunda, $155,769 at Edmonton and $158,819 at Manoora and $162,503 at Bungalow – five of the seven lowest median unit prices in Queensland.
He said the figures were good for those considering investing in the region.
“If you’re looking for an investment unit, Cairns has some fantastic suburbs to consider,” Mr Jones said.
“The low unit prices and high rental yields give you the perfect opportunity to enter the market, a solid return on investment and a way to boost your property portfolio,’’ he said.
Mr Jones said it was important for both owner-occupiers and investors to ensure that they do their homework before entering the market.
“Whether you’re buying your own home, investing or even refinancing, understanding the market is absolutely critical.”
Matt Powe of Powe Property said, once again, now was the time to buy.
“It can’t be this low forever,’’ he said.
Mr Powe said tourism was rebounding and the economy was getting a boost.
“Units that have been a bit tricky, studios at Manunda, which were once $60,000, are selling for $80,000,’’ he said.
“We are seeing the re-emergence of the investment buyer.’’
But Mr Powe warned that the higher rents were offset by costly body corporate fees and insurance premiums.
RE-MAX Cairns Principal Tony Williamson said units were selling well.
“Investors are coming back because of the high yields,’’ he said, adding that a $100,000 unit was being rented for $240 a week.
“With interest rates just 4.7 per cent, that’s a greater return,’’ he said.
“Cairns is still so cheap. Investors, locally and from the south, are back for the first time in four years.’’