Cairns, Port Douglas, Atherton Tablelands Innisfail and Mareeba

NORTH QUEENSLAND

1800 543 328

24/7 Customer Support

Mon - Fri: 9:00 - 17:30

Exceptional Customer Care

Many investors think that once they surpass the $700,000 threshold for free standing homes, they can no longer purchase positive cashflow properties and this couldn’t be further from the truth in Cairns and Port Douglas.

Investors that are purchasing property in Far North Queensland that have short-stay and Airbnb appeal can expect returns north of 8%. Our office has purchased many Airbnb investments for clients, and we see certain properties that tick all the boxes holiday makers are looking for whether it be a house with all the amenties or in the ideal location. 

With a tighter lending environment many investors are looking for creative ways to scale their portfolios. The average rental yield for residential rental properties between the purchase price of $700,000 to $3,000,000 ranges between 2-4% and its difficult for investors to generate positive cash returns to continue scaling their portfolio and create further serviceability.

What most investors then do is they’d spilt a 1 million pre-approval into two $500,000 purchases as a strategy to increase cashflow to scale portfolios. However, our team at Tropical Life are seeing this new cohort of investors.  These investors are not interested in holding one large negatively geared property or spreading their budget across multiple properties but rather choosing one lucrative high-end Airbnb investment.

Like our clients Jane and Daniel investors from Sydney they didn’t want to spend 3 million dollars on a property in Sydney returning a 2% yield. Instead, we recently purchased 9-11 Waterview at Kewarra Beach for 2.2 million a stunning contemporary property minutes from Kewarra Beach and Palm Cove boasting all the amenity for holiday makers.

Image: 9-11 Waterview Close, Kewarra Beach

This property featured 5 Large Bedrooms, 3 bathrooms, Media Room, Ocean Views, Tropical Pool, fireplace, and wood fire pizza oven. Our officed forecasted returns north of 12% attracting $1,500 per night and expected to be occupied more than 50% of the year.

With the Airbnb property type falling out of favour with many council jurisdictions across the country Cairns continues to stack up as an attractive proponent with huge domestic and international inbound tourists, International Airport and a council in full support.

Troyson Bassani

Buyers Agent & Head of Research

Tropical Life Buyers Agency

Leave a Reply

Your email address will not be published. Required fields are marked *