Invest in properties always in demand
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.