In­vest in prop­er­ties al­ways in de­mand

The Weekend Post - Real Estate - - Front Page - BIANCA KEE­GAN

ex­actly how their next Cairns prop­erty can help them achieve their strate­gic goals,” Mr Birch said.

Mr Birch has pre­vi­ously been in­volved in the pur­chase of a 25unit com­plex in Ish­mael Rd at Ear­lville as well as nine units at Clifton Beach which was worth $1.8 mil­lion four years ago.

He said Cairns rep­re­sented a cash flow in­vest­ment for in­vestors who had al­ready de­vel­oped a foun­da­tion port­fo­lio of “bread and but­ter prop­er­ties”.

“There has been very lit­tle con­struc­tion since the GFC so hous­ing sup­ply is dry­ing up and de­mand is strong as tourism has picked back up, but I still see it as a riskier long-term play,” he said.

“The cash flow can look very good but the un­der­ly­ing econ­omy is still sus­cep­ti­ble to rapid changes.”

Buy­ing be­low mar­ket value and pur­chas­ing hous­ing which would al­ways be in rental de­mand were the best in­vest­ment strate­gies in Cairns, he said.

“The ad­van­tage of buy­ing prop­er­ties be­low mar­ket prices gives you a quicker route to re­leas­ing eq­uity to use as a de­posit for the next prop­erty to grow your port­fo­lio faster. In­vest in types of hous­ing which are al­ways in de­mand from renters, in­vestors and home buy­ers.

“This way you can be sure to have an exit strat­egy and a buyer if you change your mind.”

Over­all he felt pos­i­tive about the Cairns mar­ket. “There is al­ready a lot more buyer ac­tiv­ity vis­i­ble in the mar­ket with a greater per­cent­age of prop­er­ties un­der con­tract at any time.”

FEEL­ING POS­I­TIVE: Prop­erty mogul Nathan Birch speaks about Cairns and why it is the place to in­vest.

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