More demand for smaller homes with big rental returns in Cairns

first_img Palm disease flagged as ‘too hard’ a problem MORE NEWS Tom Quaid of Quaid Real Estate. PICTURE: STEWART MCLEAN Pub owners consider new CBD highrise Smithfield bypass revs up A PERFECT storm of tight vacancy rates, high rental returns, difficulty in securing a mortgage and high body corporate fees is forcing Cairns homebuyers to rethink their ideal properties.Thirty years ago any block under 800 sqm was “looked upon as inferior”, but it now it represents the premium end of the market, according to Real Estate Institute of Queensland Far North zone chairman Tom Quaid.“Now 600 sqm lots are taking that position and sub-400 sqm is becoming generally accepted as the way forward for both sustainability and affordability,” he said. More from newsCairns home ticks popular internet search terms2 days agoTen auction results from ‘active’ weekend in Cairns2 days agoThe trend is something Melanie Reynolds, Value Homes’ investment and development manager said was a niche her team had been able to effectively fill. “We often deal with investors, both locally and out of southern markets, who are looking for cashflow and the security of bricks and mortar but are finding themselves priced out of other markets and looking for new opportunities,” she said. “Cairns remains affordable, has some of the tightest vacancy rates in the state and is achieving consistently high rental returns, so to be able to create a product that lets them maximise both rent and the depreciation of a new asset means they can feel secure in their investment and achieve a result far better than simply having money in the bank.” SUBSCRIPTION OFFER: $5 A MONTH FOR THE FIRST THREE MONTHS “This reduction in lot size has becoming particularly prevalent based on the specific conditions of the Cairns market, with high body corporate fees and difficult viabilities of new apartment construction pushing developers to small lot subdivisions in order to maximise their financial yields rather than just density.”Boutique developments of two to four homes, including semi-attached townhouses have been designed to be affordable and provide a new housing product. Mr Quaid said contrary to popular belief, not all buyers were looking for a large house on a large block.“There are those for whom proximity to services or a smaller, more low maintenance property is ideal but existing homes that might otherwise fit the bill were designed in another time and without the features they would expect now,” he said. “This provides an option at a price point which can provide a valid alternative. Six or seven years ago we saw a spate of this style of construction as older Queenslanders were either repositioned or removed from blocks to allow for additional homes to be built close to town, but now we are seeing this style also come out in growing suburbs as well.”He said 185 Isabella Rd in Millhouse Estate, Edmonton was an example of the new breed of duplex which provided the full features of a home but on a low maintenance block and at an affordable price point. A duplex with two four-bedroom, two-bathroom homes with secure garages and a fenced yard could get rent of up to $860 per week. Not all buyers are looking for a large house on a large block. Pictures Lucas Muro.last_img


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