Prices Expected to Bounce Back

BUYING SELLING INVESTING AUGUST 2017

LATEST NEWS PRICES EXPECTED TO BOUNCE BACK

A BUYER’S GUIDE SUBURB PROFILES YOUR COMPREHENSIVE ROUND-UP OF CAIRNS SUBURBS INCLUDING THE LATEST STATISTICS

GETTING STARTED WHERE TO BUY SNAG TOP DOLLAR PRIMED FOR INVESTMENT HOW TO GET YOUR LOCATION, LIFESTYLE AND HOW TO PREPARE EXPERTS TIPS TO FOOTING ON THE PRICE: WHICH SUBURBS YOUR PROPERTY START BUILDING PROPERTY LADDER TICK THE BOXES FOR SALE YOUR PORTFOLIO V1 - CCPE01Z01FC INSIDE Selecting a spot

Lifestyle, location and price continue to be decisive factors for buyers looking at the Cairns property market. Softer market conditions mean budding buyers are spoiled for choice in the region, with the level of affordability high across the board, particularly in “lower-end” suburbs. Personal space

Stylist Gerlinda Stella has found a way to combine a large family with a demanding business in the one space – her home at Edge Hill near the Cairns CBD. The property has an abundance of room and is finished off with a few personal touches made by the style guru herself.

BUYING SELLING INVESTING AUGUST 2017 SUBURB

ON CAIRNS PROFILES

LATEST NEWS PRICES EXPECTED TO BOUNCE P24 - Aeroglen BACK P25 - Bayview Heights P26 - Bentley Park

A BUYER’S GUIDE P27 - Brinsmead SUBURB PROFILES YOUR COMPREHENSIVE ROUND-UP OF CAIRNS P28 - Cairns City SUBURBS INCLUDING THE LATEST STATISTICS P29 - Caravonica

GETTING STARTED WHERE TO BUY SNAG TOP DOLLAR PRIMED FOR INVESTMENT P30 - Clifton Beach HOW TO GET YOUR LOCATION, LIFESTYLE AND HOW TO PREPARE EXPERTS TIPS TO FOOTING ON THE PRICE: WHICH SUBURBS YOUR PROPERTY START BUILDING PROPERTY LADDER TICK THE BOXES FOR SALE YOUR PORTFOLIO P31 - Earlville ON THE COVER: P32 - Edge Hill The Cairns CBD at about 6pm, just on P33 - Edmonton sunset. Photo by Brendan Radke. P34 - Freshwater P35 - Gordonvale Sold On Cairns is a special publication of the P36 - Holloways Beach Cairns Post. Editors: Jennifer Spilsbury, Sian P37 - Kamerunga Jeffries. Journalists: Hayden Smith, Rowan P38 - Kanimbla Sparkes. Designer: Jay Tweedie. P39 - Kewarra Beach P40 - Machans Beach P41 - Manoora INDEX P42 - Manunda P6 - Cairns market overview P43 - Mooroobool P8 - Getting on the property ladder P44 - Mt Sheridan P9 - Suburbs that tick the boxes P45 - Palm Cove P10 - Estate living P46 - Parramatta Park P11 - Money essentials for buyers P47 - Redlynch P12 - Financing renovations P48 - Smithfield P14 - How to get top dollar at market P49 - Stratford P15 - Choosing a real estate agent P50 - Trinity Beach P16 - At home with P51 - Westcourt P18 - Move or improve your home P52 - White Rock P20 - Build your property portfolio P53 - Whitfield P22 - Beat interest rate creep P54 - Woree P23 - Selling with tenants P55 - Yorkeys Knob

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02 [email protected] CAIRNS POST / THE CAIRNS WEEKEND POST, Wednesday, August 23, 2017 CCPE01Z01FC - V1

2 | SOLD ON CAIRNS | AUGUST 2017 V1 - CCPE01Z01FC FROM THE EDITOR, JENNIFER SPILSBURY Much to stay positive about

Whether you’re buying or selling, there is evidence to say Cairns is emerging as a leader in a regional resurgence

IT is an interesting time in real estate. FNQ’s robust tourism sector. While the jewel of the Far North has In contrast, residential property fared much better than its regional appears to be in a holding pattern. counterparts, Townsville and Mackay, REIQ Cairns zone chairman Tom in recent times the market is restless. Quaid describes the mood of Cairns The Cairns economy has been qui- well. etly doing the hard yards for several “Cairns has been at the tipping years but has gathered much momen- point of going from good to great for tum with the arrival of cranes on the some time, experiencing near record- skyline and long-awaited positivity in low rental vacancies, increasing the unemployment rate over the past yields, tight supply in many areas and six to 12 months. the added benefit of interest rates The arrival of Syrian billionaire being at some of their most affordable Ghassan Aboud’s GA Group has in- levels.” jected excitement. There is a belief that the buoyancy Seemingly for years eyes were of commercial development, growing glued, and investment put on hold, to tourism, more jobs and big-ticket the Aquis casino resort plan. funding announcements – from the Refreshingly, headlines on the GA State Government including $150m Group’s trinity of CBD hotel develop- for the Smithfield bypass, $60m for ments have been followed by action the dredging of Trinity Inlet and a and as a result, residents and inves- $176m commitment to expand the tors are growing in confidence about Convention Centre – will flow on. the projects and what else may unfold The following information has for the city. been collated and produced so that Along with Cairns Regional Coun- you are armed with the best know- cil’s CPAC development and the soon- ledge of the Cairns property market to to- be opened aquarium, commercial ensure you get the most out of your in- development is keeping pace with vestment whether buying or selling. ST MARY’S Catholic College Strong Foundation - Bright Future

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4 | SOLD ON CAIRNS | AUGUST 2017 Catholic Schools and Colleges in the Cairns Diocese

Choose the Cairns Suburban Region Northern Region Catholic school Bentley Park – St Therese’s School Cooktown – Holy Spirit College 4055 4514 www.stthereses.qld.edu.au 4069 6042 www.holyspiritcollege.qld.edu.au

difference for Cairns City – St Monica’s College Mossman – St Augustine’s School your child 4042 4800 www.stmonicas.qld.edu.au 4098 1631 www.staugs.qld.edu.au Earlville – Our Lady Help Thursday Is. – Our Lady of the of Christians School Sacred Heart School 29 schools and colleges 4054 2566 www.olhoc.qld.edu.au 4069 2203 www.olsh.qld.edu.au in the Cairns region Gordonvale – St Michael’s School Weipa – St Joseph’s Parish School 4056 1614 www.stmichael.qld.edu.au 4069 9500 www.stjosephsweipa.qld.edu.au

Manoora – Holy Spirit College Atherton Tablelands Region 4053 4550 www.holyspiritcollege.qld.edu.au

Manunda – St Francis Xavier’s School Atherton – St Joseph’s School

4037 9900 www.xaviercairns.qld.edu.au 4091 4211 www.stjoeys.qld.edu.au

Mount Peter – MacKillop Catholic College Dimbulah – St Anthony’s School

4045 5262 www.mackillopcatholiccollege.qld.edu.au 4093 5319 www.sta.qld.edu.au

North Cairns – Mother of Good Counsel School Herberton – Mount St Bernard College Thursday 4096 1444 www.msb.qld.edu.au Island 4053 6133 www.mogc.qld.edu.au

Parramatta Park – St Augustine’s College Mareeba – St Stephen’s Catholic College 4051 5555 www.sac.qld.edu.au 4086 2500 www.sscc.qld.edu.au

Parramatta Park – St Joseph’s School Mareeba – St Thomas’ School 4051 4041 www.stjosephscairns.qld.edu.au Weipa 4092 1570 www.stthomasmareeba.qld.edu.au

Redlynch – St Andrew’s Catholic College Ravenshoe – St Teresa’s School

4039 5200 www.standrewscc.qld.edu.au 4097 6173 www.stteresas.qld.edu.au Cairns Suburban Region Trinity Park – Holy Cross School Innisfail / Johnstone Region Trinity Park 4057 6920 www.holycross.qld.edu.au

Woree – St Gerard Majella School Babinda – St Rita’s School 4054 4805 www.sgmcairns.qld.edu.au 4067 1467 www.stritasbabinda.qld.edu.au Woree – St Mary’s Redlynch North Catholic College Innisfail – Good Counsel College Cairns CAIRNS Cooktown 4044 4200 www.smcc.qld.edu.au 4063 5300 www.gcc.qld.edu.au Manunda Parramatta Park Earlville Innisfail – Good Counsel Primary School 4061 2994 www.gcps.qld.edu.au Woree

Mossman Silkwood – St John’s School Bentley Park Mareeba 4065 2193 www.stjohnssilkwood.qld.edu.au Dimbulah Cairns ‘Preparation for Babinda South Johnstone – St Rita’s School Atherton a life of worth, Mount Peter Herberton Innisfail 4064 2153 www.stritascps.qld.edu.au Ravenshoe not merely a Sth Johnstone Tully – St Clare’s School Silkwood Gordonvale life of work’ 4068 1527 www.stclares.qld.edu.au Tully

V1 - CCPE01Z01FCCatholic Education Diocese of Cairns Ph: 4050 9700 www.cns.catholic.edu.au/our-schools MARKET OVERVIEW

THE stars have aligned for the Cairns property Rental vacancies rates are tight and, with a lack market and real estate experts believe it is only a of new unit stock on the market, appear likely to matter of time before prices start to bounce back. remain so for the foreseeable future. The Cairns market continues to outperform “Cairns has been at the tipping point of going nearby regional centres like Townsville and Mack- from ‘good’ to ‘great’ for some time, experiencing ay – where real estate prices have plummeted – near record-low rental vacancies, increasing while sales and values in the Far North city have yields, tight supply in many areas and the added Far North largely flatlined in recent years. benefit of interest rates being at some of their most With the end of 2017 looming, much of the affordable levels,” Mr Quaid said. local real estate industry rhetoric is centred on the “It doesn’t need much to move forward and fact that the string of tourism-driven commercial with improving conditions for employment that developments underway in Cairns – and subse- might just be the right catalyst to do the job. staying quent increasing employment rate – is taking “We see every opportunity for the Cairns prop- longer than expected to translate into property erty market to perform well as we move towards price growth. the end of the year, though continue to look for But REIQ Cairns zone chairman Tom Quaid that catalyst that can make the difference between believes that, just like last year, the region’s prop- a strong finish and a fantastic year overall.” on course erty market is on course to finish 2017 with a wet Troy McGuane, managing director of Elite sail. Real Estate Services Cairns, said growth in the “The reintroduction of cranes to the Cairns local property market was imminent. skyline has been a major topic of conversation for “Traditionally the Cairns market takes a while With a number of cranes on the some time,” he said. to respond to changes in the market; however I do “With greater construction activity seen as a believe that the commencement of construction skyline and several tourism-driven confidence booster and a welcome influx of econ- work within the CBD will lift the property market commercial developments expected omic activity (and greater local spending), those in the coming months as confidence grows,” he factors are being positive contributors to the prop- said. to drive employment and growth, the erty market. “The continued increase in property prices in Cairns real estate industry is waiting “These activities are still ongoing across the the southern markets – specifically Melbourne, city, with a number of additional high-profile pro- Sydney and the Gold Coast – is holding the Cairns with bated breath for this activity to jects due to join them in the coming months. market back. translate into solid property price “As these projects multiply, their impact on “These markets have high activity levels at this Cairns and property should begin to be more point … however once we see these southern mar- growth, writes Hayden Smith keenly felt.” kets plateau, the interest from buyers will shift to Cairns is classified as a “steady state/start of re- market places that have been idle for some time covery” market under the Herron Todd White and are expecting growth – Cairns meets this cri- National Property Clock. teria.”

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06 THE CAIRNS POST / THE CAIRNScontact WEEKEND POSTCol, Wednesday,Hancox August to discuss 23, 2017 the sale of your home. CCPE01Z01FC - V1

6 | SOLD ON CAIRNS | AUGUST 2017 What My Clients Say About Me... ‘I arrived in Cairns in 1987 with a backpack and $20 in my pocket’ “very professional approach” “dedicated and results orientated” Col Hancox Selling over $100 million of property in Cairns, Geena continues to be “proactive, reliable, punctual and honest” THE REALLY AGENT® TALL one of Cairns most respected and “a stress free enjoyable selling experience” “head & shoulders above the rest” “he went above and beyond the call of duty” well known Real Estate Agents. 21 Years Real Estate Experience As one of the most prominent “very approachable, straight-talking and knowledgeable” Email: [email protected] “trustworthy, courteous, gentlemanly and genuine manner” Project Marketing Agents in Cairns, Call: 0409 493 253 she has sold over 50 projects. If you’re after an experienced hardworking agent delivering exceptional client service,

V1 - CCPE01Z01FC contact Col Hancox to discuss the sale of your home.THE CAIRNS POST / THE CAIRNS WEEKEND POST, Wednesday, August 23, 2017 V1 - CCPE01Z01FCGeena Court [email protected] CAIRNS POST / THE CAIRNS WEEKEND POST, Wednesday,0418 August 770 23, 9192017 07

AUGUST 2017 | SOLD ON CAIRNS | 7 BUYING How to get started on the property ladder The deposit gains most of the attention in considerations regarding the purchase of a home but there are other elements in the transaction that need careful attention

KIRSTEN CRAZE

THE first step is the hardest. Most hopeful first- Do the house buying homework home buyers would agree that the initial leg up Don’t shop for what you can’t afford. on the property ladder - saving a hefty deposit - “A lot of people say first-home buyers have a is the biggest hurdle. but focusing too much on champagne taste on a beer budget, which is not the eye-watering sum could overshadow other really true,” Mr Singh said. important steps towards homeownership. Buyers may have a dream hit list when it comes to what property they want, but a little It’s not just the deposit homework can go a long way towards avoiding “The deposit is obviously the first and most im- disappointment. portant step. While some buyers have parents “We find a lot of first-home buyers have a who can provide a guarantee, others will need good idea of where they want to buy, but they some sort of deposit whether that’s 5 per cent, don’t necessarily know if they can afford it, or if 10 per cent or 20 per cent, but then you also the property is suitable for them. So check out have stamp duty,” said Taj Singh, co-founder of what median prices are and how they’ve per- advocacy group First Home Buyers Australia. formed historically, also it’s good to research Depending on the state or territory, and the amenities in an area so once your family grows, type of property being purchased, stamp duty you’ll know if you’ll still see yourself living fees vary greatly for first-time buyers so it pays there,” he said. to visit www.firsthome.gov.au at the start of the househunting journey. Think outside the box “On a $500,000 home that could be more “Consider a strategy we call short-term pain, than $20,000. In the city property prices are long-term gain,” Mr Singh said. Homebuyer or landlord? to consider buying in an area they can actually much higher so stamp duty is obviously more, “Rather than being disappointed because Today’s first-time buyers fit into two camps - see themselves living in, rather than just buying but in the regional areas it’s hard to pay that too you can’t afford that dream home now, con- those looking for a home, and those opting to go somewhere because they think it’s affordable.” because incomes just aren’t as high,” he said. sider buying a smaller property, or a property down the “rentvestor” path. And just like traditional investors, “rentves- Mr Singh said first-home buyers are on the further out and pay that down quickly. Then “What ‘rentvesting’ is all about is actually tors” also need to research tenancy vacancy back foot if they do not factor in the compulsory after some time you can look at upgrading, or living (and renting) where you want to, or have rates, rental stock numbers and rental yields if tax. buying in a more desired area,” he said. to live, but buying where it’s more affordable,” they want to make a successful purchase. “Be “We meet people who are ready to buy, but “Aspiring first-home buyers are realising the Mr Singh said. aware that prices don’t necessarily always go they don’t know they have to pay this much dream is not necessarily to buy where they grew He added that a growing number of “rent- up. In some areas prices are just always stable stamp duty to buy their first home. They then up, or where their parents are telling them to vestors” choose to stay with their parents and don’t really rise. The whole point in “rent- have to save extra and when they are finally buy. It’s more about just getting into the mar- longer while they built up equity in their invest- vesting” is to buy where the equity will grow in ready to buy, property prices have increased ket, being motivated to pay off the property and ment. the property so one day that will allow you to another few per cent in that time.” then upgrade.” “So what we always ask first-home buyers is sell and buy a dream home,” he said.

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8 | SOLD ON CAIRNS | AUGUST 2017 BUYING

Growth pattern

Whether it’s a premier community, city-fringe localities or “lower-end” suburb, the Cairns property market is heating up

HAYDEN SMITH

SOFT market conditions mean budding property buyers are spoiled for choice in Cairns, with the level of affordability high across the board. Historically popular city-fringe suburbs like Brinsmead and Edge Hill remain highly sought-after, CLARE Ferguson and her husband Mike Platz have “We looked up here and realised there was a lot particularly among families, while more central spent the past few months settling into a neat more available in our price range,” she said. centres like Parramatta Park have been gaining Quality at Manoora home after cracking the property market in “We still had a lot of obstacles to overcome before popularity. style. we could buy and we were very lucky to have the But the market, especially first homeowners, is For just over $400,000 they were able to buy a support of my mother and family.” also taking advantage of the value for money on price they large three-bedroom house at 70-74 Upper Perkins St. While often maligned, Manoora still boasts a offer in “lower-end” suburbs like Mooroobool and Ms Ferguson, a real estate agent with LJ Hooker wealth of attractive properties, which has been Bungalow. Cairns Edge Hill, said they had been priced out of the reflected in the steady increase in the suburb’s median Location, lifestyle and price continue to be the can afford Brisbane market. house price. decisive factors for buyers. RE/MAX Cairns principal Tony Williamson said “premier suburbs” would likely be the first to house stayed on the market for an average of just 25 Parramatta Park had the highest growth in the Mr Williamson was confident buyers would soon experience property price growth during a rising days during the 12 months to April. number of online visits per house out of all Cairns have to fork out more for their property of choice. market. Houses at Brinsmead were on the market for just suburbs during the six months to March 31. “I’ve worked in three comparable Cairns markets “Some of the better suburbs – such as Edge Hill, 35 days on average, well below the Cairns median of The Queenslander-replete inner-city suburb to this one … the jug is starting to heat up, and when Whitfield and Freshwater – have a higher density of 59 days. recorded an average of 445 visits per property, a 45 it gets to 100-degrees it’s going to boil,” he said. owner occupiers than investors, and the properties And in an example of the growing appetite for per cent increase from the period between October “And when the market boils in Cairns, people are typically in better condition,” he said. inner-city living, median house prices at Parramatta 2015 and March last year. start to panic-buy while trying to jump on board. “The market doesn’t go up at a level pace across Park were almost 32 per cent higher in April this year Cairns is classified as a steady state/start of “All the factors are in place – strong tourism, sell and buy a dream home,” he said. the board.” than the same month in 2014. recovery market under the Herron Todd White construction and rentals – except for property prices. According to CoreLogic, the average Edge Hill Data released by realestate.com.au showed Property Market Clock. But it’s going to happen.”

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AUGUST 2017 | SOLD ON CAIRNS | 9 HOUSE AND LAND Estate plans evolve Four new housing estates being developed in Far North Queensland are tailor-made for first homebuyers.

HAYDEN SMITH

FROM the burgeoning Southern Access Corri- dor to the Northern Beaches, several residential estates are taking shape in Cairns. While new building approval levels remain flat in the region, the relatively affordable house and land packages offered through these estates are proving popular, particularly among first homeowners. Here are four new residential estates currently in the pipeline across the Cairns region:

Mount Peter Residential Estate The Southside mega-development will become the region’s next residential hub. The Mount Peter Master Planned Area was declared in 2008, and 129 lots have since been developed, with more than 90 more currently under construction. Kenfrost Homes director Adam Gowlett said about 70 homes were either complete or under construction at Mount Peter. “Kenfrost specialises in house and land packages and they can be ideal for first homebuyers,” he said. More than 200 allotments have been com- undertaken by Satterley Group, have been Panguna Valley “Where a custom-built house and land pack- pleted since the first sod was turned in the early steady. This “premium” Kewarra Beach residential es- age might require buyers to keep paying rent/ 2000s. The Gilberton Release, featuring 22 blocks of tate exemplifies tropical living, with lots ran- mortgage and cover the cost of a build, a house Sales agent Grant Stone expected the estate’s land ranging from 375sq m-575sq m, was taken ging in size from 688-1,300sq m. and land package can reduce that pressure by appeal to be further boosted by a string of major to the market recently but is already proving a With land already scarce on the Northern only requiring a deposit upfront and then pay- infrastructure projects nearby, such as the Bill hit with buyers. Beaches, selling agent Ralph Westera said only ing the balance at settlement.” Fulton Bridge duplication and Smithfield Shop- The stage is still under construction but 11 blocks were still on the market at Panguna ping Centre upgrade. many of the blocks have been sold off the plan. Valley. Red Peak Forest Estate “The level of inquiry has certainly increased “After they sell, it is all over red rover,” he Set in the picturesque Caravonica, this new bou- Smithfield Village … certainly from people who are coming to said. tique residential development is being driven Despite tough market conditions in Cairns, Cairns,” said selling agent Ben Johnston of “The big blocks in particular have been in re- by the Oberdan family. sales in the Smithfield residential estate, being Property Shop Cairns. ally high demand.”

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10 | SOLD ON CAIRNS | AUGUST 2017 FINANCE Hassan said there is an alternative. “A good option might even be a split loan. That way you are getting the benefit of the low variable rate, but you can lock in a portion of your loan at a fixed rate.” Finance Live within limits When it comes to property there’s what you want to spend, and what you should spend. “Don’t buy what you can’t afford,” Ms Has- san said. essentials “You might think that rates are never going to be this low again and you could be tempted to dive in, but you run the risk of over-extending yourself. A couple of rate movements up and you could find yourself in major trouble,” she for buyers said. The golden rule among finance experts is to limit loan repayments to no more than 30 per When would-be buyers start house-hunting cent of earnings. Anything more than that is considered mortgage stress. many can get hung up saving a deposit, but “So whatever rates you’re speaking to your that initial hefty sum is just one of many broker or your bank about, literally factor in a buffer of about 3 per cent, do your calculations financial boxes to tick and see whether you can afford payments at that rate.” KIRSTEN CRAZE Ditch the debt Putting away a portion of each paycheck for a house deposit could prove futile if there is a big WHILE savings are essential, a savvy buyer also could creep up on you for switching loans, low, but buyers should consider their personal credit card or personal loan debt hanging in the does their research, making sure their financial changing payments or even getting out early. circumstances before locking loans. balance. housekeeping is in order. And in the complex world of home loans it’s “Fixed rates are quite competitive at the mo- Good financial sense dictates that getting rid Bessie Hassan, money expert with find- wise to remember one simple rule – what goes ment, but with that in mind if you do go down of unnecessary credit cards, paying off car loans er.com.au, said from understanding interest down will inevitably go up. the variable home loan route it means you’ve or student debt is the best first step to saving for rates to wrangling personal debt, buyers needed “All indicators are that the current rate will got quite a bit of flexibility. With a variable loan a house deposit. to do their sums. not stay this low, it’s never been this low before you’re able to move between lenders, between “On your credit card you might have a and it’s more a matter of not if it’s going to go products more easily,” Ms Hassan said. $10,000 or $15,000 limit and that’s what the How low can it go? up, but when. In fact our next rate movement is “Generally you do pay a little more with a bank is going to be factoring in, not just how “We’re in a historically low rate market,” Ms more likely to be up than down,” Ms Hassan fixed rate, but you’re paying for that peace of much you’re owing on it. That’s an oversight by Hassan said. “So right now look for a home loan said. mind, knowing that when it’s fortnightly or many Aussies.” with a three in front of it.” monthly repayment time you know exactly “Ideally, get rid of all debt, but if you can’t do She added that buyers should not only focus To fix or not to fix what you’re up for,” she said. that then work out what’s the minimum you can on rates, but also ask about all the fees that It might seem logical to fix while rates are so For buyers wanting to hedge their bets, Ms survive with,” Ms Hassan said. TALK TO US TODAY! Professional service from 25 YEARS OF EXPERIENCE. 1 PHONE CALL, 1 PAYMENT, 1, 2 OR 3 INSPECTIONS

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V1 - CCPE01Z01FC THE CAIRNS POST / THE CAIRNS WEEKEND POST, Wednesday, August 23, 2017 11

AUGUST 2017 | SOLD ON CAIRNS | 11 FINANCE Financing your home renovations

There are plenty of choices for homeowners and investors when funding renovations, but the best option depends on your individual circumstances and finances

ROWAN SPARKES

RENOVATING has become a popular national “One is to borrow additional money on your “Also be aware that some lenders may charge the ideal option for renovations up to the pastime, encouraged by an abundance of DIY existing loan,” Mr Thomson says. redraw fees.” $25,000 mark,” Mr Thomson says. home renovation television programs that show “You can usually borrow around 80 per cent For smaller renovations, homeowners can Consulting a good mortgage adviser will help just how ‘easy’ it is. of your equity threshold, as long as you can ser- consider using the equity in their home to get a decide which option is right for you. With proper planning and taking on the right vice the increase in debt,” he says. line of credit loan. No matter how you decide to finance your projects, renovations are a great way to add “There is some paperwork involved when ap- Using a line of credit means funds can be ac- renovation, it’s imperative to do your research value to your property. plying for a top-up, but it is much simpler than cessed incrementally and interest is only paid to make sure you are increasing the value of Anyone who has been through a renovation taking out another loan.” on the amount used. your property and improving your financial knows how the costs can blow out easily; how- If your loan has a redraw option, Mr Thom- “This is ideal for paying for work as it pro- position in the long run. ever, as long as you are adding value, renovat- son says you can access any extra repayments gresses,” Mr Thomson says. Done properly, renovating can be a cheaper ions are a positive financial decision. made, provided they are above the minimum With no minimum regular repayments, it is option than moving, and if and when you do de- Cairns-based Smartline mortgage adviser repayment requirement. up to the individual to pay off the loan and en- cide to move, it can ensure you maximise your Jason Thomson says when it comes to funding a “It might not be suitable for larger renovat- sure the balance does not exceed the limit. sales price. renovation, homeowners and investors have a ions as you can only access up to the original “If you don’t have enough equity for other Renovating can also increase your equity if few different options. loan amount,” he says. loan options, taking out a personal loan may be you want to borrow for investment purposes.

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RE-THINK HOW YOU DO BUSINESS. Assisting businesses to become more productive and more profitable.

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“You’ve got to be realistic about your own talents. If you’ve got builder contacts, trade contacts, capabilities yourself and practical know-how then you’re one step ahead,” he said. “However, if you’re going to try and do a renovation on a property when you haven’t got those skills and then try to make a profit in the short term - chances are you won’t. I’m sorry, but the odds are stacked against you,” he said.

What’s your style? Although TV suggests that styling before selling is a must, Mr Winter said it is not always necessary. “I think you can sell an empty house. I also have a problem with putting beautifully staged furniture in a house that needs a total renovation. To an educated buying public it just looks silly,” he said. However, there might be an exception to that rule. “It’s contrary to what people might think, a room can actually look bigger furnished. So if it’s a very small home the idea of putting a few beds in to give the idea of bedroom size actually has its advantages,” he said.

Where do you start? A makeover might only need to give buyers a taste of your home’s full potential, so Mr Winter suggests giving them a sample. “If you’ve got more than two bedrooms, then you don’t have to worry about bedroom three, property is, and the less modernised it is, then four and five. Focus on, say, bedroom one and the less likely it is worth doing anything,” Mr two. If you’ve got multiple bathrooms, focus on Winter said. one,” he said. Maximising “A dated home throughout is going to have a And Mr Winter said it also pays to not be too lower value than the typical house in that street. narrow-minded about just one aspect of the Therefore, it could arguably be more saleable. home. In that case, you might actually get more buyers “If you only had $30,000 to spend on your chasing and end up with more money net than if $600,000 home it’s not worth spending it all on the sale price you’d blown $100,000 on a renovation,” he said. the kitchen. No matter how amazing your Mr Winter said sellers need to find out how kitchen is if the rest of the house doesn’t match their property sits among its competition. up to it, it’s actually going to be an imbalance. “It’s all about establishing the existing value In fact, that will just jar with everything else,” Pre-sale preparations don’t have to be as elaborate as television ‘as is’ and then the estimated value if the home he said. would indicate. When getting ready to take a property to market, was upgraded. Then calculate the difference between the two. Is it a viable option for you in Staying cheap and cheerful sometimes it’s the simple changes that are often the most profitable the current market?” he said. When the budget is tight, Mr Winter said there is one low cost solution to add perceived value. KIRSTEN CRAZE Should you go it alone? “Paint! It’s probably the most specific thing, “If it’s clean, tidy and light people will buy even there’s no doubt about it. You could take a the most dated home,” he said. really grotty old bedroom and if you took the REALITY TV makes the formula seem straight Foxtel’s Selling Houses Australia, vendors should Mr Winter said ditch any old and ugly old air conditioning unit out, ripped up the forward. The more money spent on new kitchens carefully consider the property, its location and furniture, dated air conditioning units and ratty horrid carpet, took down old blinds and and fancy throw pillows, the bigger the sale price the marketplace before strapping on their tool curtains because they are a huge turn off for repainted it - even without flooring and of a property. belts. buyers. window dressings it would still look like a But according to the ring leader of real estate Makeover, or leave it alone? But if you decide to take the DIY route, there manageable room if there is a fresh coat of television himself, Andrew Winter of “My general rule of thumb is the older the are guidelines to follow. paint,” he said.

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14 | SOLD ON CAIRNS | AUGUST 2017 “However, if you’re going to try and do a

What’s your style? What should you Although TV suggests that styling before necessary. be looking for in a furniture in a house that needs a total just looks silly,” he said. real estate agent that rule.

Choosing a real estate agent to sell your home is usually one has its advantages,” he said. of the first stressful experiences property sellers go through,

Where do you start? but what exactly should you be focusing on?

suggests giving them a sample. HAYDEN SMITH

FINDING the ideal real estate agent can be just the buyer first see the property?’ should provide one,” he said. another headache for Far North property sell- a greater insight and give you more confidence ers. in your choice,” he said. REIQ Cairns zone chairman Tom Quaid said John Cunningham of renowned Sydney firm home. it was crucial to ask the right questions before Cunningham’s Real Estate said research and teaming up with a real estate professional. local knowledge were also fundamental factors “When choosing an agent, everything really to consider. the kitchen. No matter how amazing your boils down to communication, strategy and “(They should know) what the local schools negotiation – in that order,” he said. are, what is the zoning, what are the local bus “Effective communication with both your- routes, what’s the local coffee like … that’s really self and potential buyers will get the key points important to people,” he said. he said. across and identify full value; a clear strategy “They need to really have an understanding will help identify your ideal buyer and market of the marketplace.” Staying cheap and cheerful to them directly. Mr Cunningham said 80 per cent of the deci- “And finally, the right negotiation skills and sion making process when buying a property attitude should mean that, with that ideal buyer was emotional, so agents should know what in front of them, the agent can then bring it all buyers were going to respond to. there’s no doubt about it. You could take a together to deliver the best result.” “The agent that’s going to get the best result Mr Quaid said it was important for sellers to is the agent who looks after buyers the best,” he old air conditioning unit out, ripped up the ask their potential agent about any experience said. horrid carpet, took down old blinds and they might have in dealing with similar proper- “The agent people should be looking for is repainted it - even without flooring and ties. someone who can engage and nurture buyers. window dressings it would still look like a “Questions like, ‘what kind of marketing “Respect and transparency is going to get the manageable room if there is a fresh coat of budget did you recommend?’ and ‘where did best outcome.” paint,” he said.

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AUGUST 2017 | SOLD ON CAIRNS | 15 AT HOME WITH

HAYDEN SMITH fit us all,” she said. “And we just love the area. The street is quiet, the kids catch the bus to school, and on a Edge Hill beauty WITH three children, as many stepchildren, a cat weekend we can just walk up to the local cafes.” named Heidi and business to run, Cairns With Mrs Stella being a professional stylist, fashionista Gerlinda Stella needs to spend her the house is unsurprisingly easy on the eye. spare time wisely. An epic Ken Duncan photograph of Havasu Luckily, her five-bedroom Edge Hill home Falls, Arizona, greets guests upon arrival; is still in fashion seems custom-made for relaxation. upstairs is an equally impressive shot of the “Most afternoons we will enjoy a drink on the Grand Canyon. front balcony while watching the sun go down,” “My husband Rick is a big fan of photography, she said. and I’m quite into it as well,” she said. Combining a large family with a demanding business in the same Hailing from the Gold Coast, the Cairns The house is modest but oozes the tropical living space, Gerlinda Stella’s Edge Hill property has an abundance of resident of about 13 years has called the solid appeal synonymous with Cairns suburbia. two-storey Jaye St property home since 2011. A recently renovated kitchen adjoins the room as well as some her own personal touches. “At that time, my kids were all going to Edge spacious living room, in which the family will Hill State School and the stepchildren would bond of an evening over episodes of The often come and visit – we needed a big home to Bachelor.

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16 | SOLD ON CAIRNS | AUGUST 2017 “I love the kitchen and spend a lot of time cooking and baking; Rick picks up the slack when he can,” she said. Anything other than a mammoth walk-in wardrobe would be hard to fathom, and Mrs Stella’s garment space lives up to expectations. Working from home isn’t everyone’s cup of tea, but it suits the mother-of-three just fine. A neat downstairs area has become her office, from where she meets with clients regularly. “I just love working from home,” Mrs Stella said. “It’s a great time of the day when Rick is at work, my kids have gone to school, and I can just sit at the computer and focus on my blog.” The home is perfectly designed to cater for her three teenage children and their friends. Downstairs also features a large living room complete with a TV, musical instruments, sporting equipment, bookshelf and wood-carved barramundi. Outside, a covered patio is adjacent to the well-maintained backyard. With her business coming along in leaps and bounds, Mrs Stella and her husband also plan to take their home to a new level – when they can find time. “I love real estate – eventually we want to finish renovating the deck and do up the facade,” she said. “One day I’d like to live by the beach, but we’re very happy here for now.”

Off ers over $2M fit us all,” she said. the kids catch the bus to school, and on a the house is unsurprisingly easy on the eye.

Falls, Arizona, greets guests upon arrival; upstairs is an equally impressive shot of the Grand Canyon. and I’m quite into it as well,” she said. appeal synonymous with Cairns suburbia. A recently renovated kitchen adjoins the spacious living room, in which the family will bond of an evening over episodes of The Bachelor.

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AUGUST 2017 | SOLD ON CAIRNS | 17 RENOVATING

With Cairns property market conditions soft, he said buyers were becoming more discerning. Time to move “Buyers are being very bloody-minded and if the price of the property doesn’t suit them, i they’ll let you know in no uncertain terms by making a very low offer,” Mr Marsh said. “Pricing a property after a renovation is Garden can grow a sale or improve? critical; and so too is presenting a home so that buyers can see themselves living there.” He said overcapitalising on renovations was a THE value of a well-maintained, attractive common mistake among homeowners, adding garden cannot be understated when looking Deciding whether to renovate your current home or sell and move on that cosmetic upgrades could be just as effective. to sell property in Cairns. to bigger and better things can be tough, but either way, you want to Rob Caulfield, director of Archicentre, agreed. Speaking from experience, Chris Marsh “You need to ask, ‘if I renovate this, what said professionally landscaped gardens could make sure you’re doing the right thing by your hip pocket other things do I need to do to bring it up to make an “astronomical difference” to the sale standard? result. HAYDEN SMITH “As soon as you renovate more than 50 per “And you don’t necessarily have to spend cent of a home, then the home has to be made to a lot of money,” he said. “It will positively comply with current building regulations. affect the outcomes, but also dramatically WEIGHING up whether to renovate or sell can be “You’ve got to isolate why you feel it’s “So that’s possibly new wiring, plumbing and reduce the length of time a property stays on a stressful, time-consuming decision for Far necessary to either renovate or sell,” he said. new energy rating, so a whole part of the house the market. North property owners. “Is it because the family has outgrown the may need to be insulated and the cost can be “A secret to a successful sale process is Dilemmas over costs and, of course, the home? Are the kids getting older and more quite significant.” taking a home to the market with the emotional attachment we have to our homes are amenities are needed? Or is it business-related? A need to downsize was the motivation smallest number of negatives possible. among several factors worthy of consideration. “If you have to sell, then it’s a case of how to behind Rob and Sandy Jackson’s decision to sell “If you can get rid of negatives – and leave Chris Marsh, principal of Cairns agency Marsh get the best return without spending a lot of their unique Smithfield “tree house” (pictured buyers walking away thinking there’s two or Property, urged Far North homeowners facing money. above). They put the property on the market after three things they’d like to do, but don’t have this decision to put themselves in the shoes of “Sellers need to be able to look at their homes a comprehensive renovation which spanned to do – then you’re looking at a much better shrewd local buyers. objectively through the eyes of buyers.” several years. result.”

18 | SOLD ON CAIRNS | AUGUST 2017 V1 - CCPE01Z01FC INVESTING

the perspective that you’re going into a place that is still being built,” she said.

Don’t believe the hype If all you read seems too good a deal to be true, then chances are it is. “Many first-time investors don’t understand that they shouldn’t just look at the price or the hype around a place,” says Dr Mardiasmo. “When you’re looking for an affordable investment try and not get sucked into the hype,” she says. “If everyone is investing in a particular place, perhaps look beyond that. “You know the saying that the quiet ones are the more dangerous ones? Sometimes a place like that can give you a much better return on your investment because not a lot of people know about it and yet it may be quietly being built up by the government or by the private sector,” she added.

Beware of growth spurts Looking at a neighbourhood’s growth over the past 12 months can be a very short-sighted approach to property investing. “There’s no point looking at a place that has double digit growth this year, but has no more infrastructure or commercial work coming over the next few years because then what’s going to sus- tain that level of growth?” Although a region’s residential price growth might look attractive even over a two to five year period, Dr Mardiasmo added that switched on investors tend to dig deeper. “An average property cycle is around seven to eight years. And remember when it comes to regional areas it’s never going to be at the same speed as metro development so comparing those markets, I don’t think is a great idea.”

Be in it for the long haul Real estate is rarely a get rich quick game according to Dr Mardiasmo. “I ask ‘Are you in it to make a quick buck? Or are you in it for the long term?’ For the long term SO you want to build a property portfolio? you’re going to need to know if the place will Knowing how much to spend is important in have local jobs growth as well as infrastructure, the real estate game, but a savvy investor also therefore there is going to be more demand from Think first, asks when, what and where should I buy. renters in those areas. As an investor you want “A lot of people only look at the price, they your capital to grow.” don’t look at vacancy rates, rental yields or the infrastructure that is being built in an area. Your Know the neighbourhood research should be as one whole package,” said Becoming an investor might feel like a foray into invest second Dr Diaswati Mardiasmo, national research man- a brave new world, but chances are you’re not ager for PRDnationwide. going to be the only landlord on the block. Investing your hard-earned in bricks and mortar is a great way to create In her recently released Affordable Major Re- “As an investor it’s great to follow big compan- gional Areas Report, Dr Mardiasmo set out to ies that are building amenities in an area, or look wealth in the long-term, but there are some golden rules to consider bust some myths around regional property in- at buying into new residential developments, but before diving into the world of property investment vestment. you also need to know what other competition is “I talk to investors all the time who ask, going in there. What other properties of a similar ‘What’s in regional areas? Aren’t they kind of nature are going in? Ask yourself ‘Are there going KIRSTEN CRAZE underdeveloped?’ But you have to look at it from to be enough tenants for all of us?’”

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20 | SOLD ON CAIRNS | AUGUST 2017 is still being built,” she said.

Don’t believe the hype Investor then chances are it is. likes hype around a place,” says Dr Mardiasmo. says. what perhaps look beyond that. she sees added. Angela Capitanio, who has built a property portfolio over 30 years, Beware of growth spurts says the Cairns market is “primed” for investment proach to property investing.

HAYDEN SMITH tain that level of growth?” ANGELA Capitanio knows a thing or two about investing in Cairns, having grown a consider- able property portfolio over more than 30 years. “My late husband always took the approach vestors tend to dig deeper. that bricks and mortar are one of the best invest- ments, and that’s something I’ve tried to follow,” said the Ray White Cairns Central principal. “I’m the sort of person who buys and keeps; markets, I don’t think is a great idea.” the market is up and down, but it will always re- cover.” Be in it for the long haul She believes duplexes are smart Cairns in- vestments, and said units were a great “stepping ing to Dr Mardiasmo. stone” for people looking to build a property portfolio. “People complain about body corporate fees, but I don’t think they grasp how much it costs to maintain a house over time,” Ms Capitanio said. House or unit, she said location was a crucial factor to consider when looking at buying an in- your capital to grow.” vestment property. “I always look at the surrounding areas; you Know the neighbourhood need to see where the amenities are, including schools and public transport,” Ms Capitanio said. going to be the only landlord on the block. With prices low and rental vacancies tight, she said the Cairns market was “primed” for investment. “The market is patchy but there is a lot of potential for growth, which I think is just starting,” she said. “I’m a local and have a lot of faith in Cairns – to be enough tenants for all of us?’” things will eventually go up.”

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AUGUST 2017 | SOLD ON CAIRNS | 21 INVESTING

thus disproportionately effecting the market. Tips to beat Add to this the insurance premium crisis, and it points to a two-tier economy that is com- pletely disregarded by the north’s political rep- resentation and financial sector. interest The combination of these factors is stripping hundreds of millions from the local economy and suppressing investment in a part of Austra- lian that needs more, not less, investment. High insurance premiums and APRA’s lack rate creep of interest in regional Australia are some of the largest failures in corporate oversight since the GFC and, ironically, it all could have been An ongoing clamp-down on bank lending avoided with proper instruction from the regulator to the banks to ensure regional parts of practices has translated to lower Australia weren’t punished for the “protection” investment levels across regional Australia, of it’s capital cities. My advice for investors whose interest rates including in Far North Queensland have increased over the last year is to consider the following: OPINION ■ Switching your interest-only loan to a principal and interest loan. Most lenders are offering special rates for P&I loans. ■ Look at fixing your rates. Fixed rates are be- THE Far North continues to battle with the Aus- ■ Ensuring there is strong scrutiny and justi- very long terms). On the surface, you would feel coming more popular as banks are using them tralian Prudential Regulation Authority’s on- fication of any instances of interest-only lend- this is prudent management by the regulator; to lure new clients. Recent specials have been as going clampdown on bank lending practices. ing at an LVR above 90 per cent; however, these changes have reduced invest- low as 3.88 per cent for a two-year, fixed-rate For the past 18 months, APRA has been in- ■ Managing lending to investors in such a ment in areas not benefiting from the housing loan. creasing measures to curb growing risks in the manner so as to comfortably remain below the boom that, if anything, would have much to ■ Shop around for a better deal. Rate creep is housing sector, primarily within the Sydney previously advised benchmark of 10 per cent gain from higher investment levels. the process where existing clients’ rates go up and Melbourne housing bubbles. growth; This capital city-centric regulation, in con- over time as the banks move rates on older loan These new regulations include: ■ Reviewing and ensuring that serviceability cert with the banks’ blanket approach to lend- types and packages. Shopping around is the ■ Limiting the flow of new interest-only metrics, including interest rate and net income ing policy, has translated to lower investment in only way to keep your loans competitive in the lending to 30 per cent of total new residential buffers, are set at appropriate levels for current the Far North. market and using a mortgage broker is an effec- mortgage lending; conditions; The matter is further complicated by the fact tive way to do this in one phone call. ■ Placing strict internal limits on the volume ■ Continuing to restrain lending growth in that investor housing in Cairns is a higher pro- of interest-only lending at loan-to-value ratios higher risk segments of the portfolio (high loan- portion of housing stock at 35 per cent, while in – Roger Ward is director of above 80 per cent; to-income loans, high LVR loans, and loans for places like Port Douglas it is nearly 49 per cent, Cairns Mortgage Brokers

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Call Daryl today on 0409 267 606. in Tropical Paradise 25mins from Cairns domestic and international Airport. palmcoveprestige.com Selling a resentation and financial sector. tenanted lian that needs more, not less, investment. property If now seems like the right time to sell your investment property and make a profit, don’t of it’s capital cities. let tenancy stop you — just make sure you go about it the right way the following: ■ SELLING an investment property with a tenant Talk to the tenants tains or blinds and windows before potential name it, could work and it also shows you ing special rates for P&I loans. in place doesn’t have to be difficult, according “Ask questions, sometimes they may already be buyers arrived. understand their situation,’’ he said. ■ to property expert Andrew Winter (pictured). considering moving out, so a sale for them “This costs nothing but can make a huge dif- He said even properties with tenants on leas- means they could be released from the agree- ference to buyers’ first impressions.’’ Mr Winter said it was also important to be up- es with a long time to run could be sold, but it ment penalty-free,’’ he said. The most important thing though was to en- front in marketing and make sure all material was important to involve all parties and follow Mr Winter said it was important to reassure sure everything was returned to how it was after refers to there being a tenant in place. loan. these tips to make it as smooth as possible: tenants about their privacy and security during inspections. “If right now, for you, seems to be the time to ■ the process. sell your investment property and make some Check with your property manager exactly He advised talking to them about what were Consider “bribing” tenants profit, do not let the tenancy stop you,” he said. what the legislation is in your state before good times for inspections or open home times. Mr Winter said this could be one way to ensure Continuing to receive rental income right up you do anything Work hard to make sure your selling agent the co-operation of your tenants without any until the property sells can also ensure that you “There will be a process and you must adhere to and the tenants get along, they will need to talk hassles, while also ensuring a smooth sales pro- stay on top of investment loan repayments. this without any slips ups; fail to do this and it to co-ordinate inspections and open homes. cess. “As for the eventual sale price, an averagely tive way to do this in one phone call. could cost you,’’ Mr Winter said. While you personally can’t turn up and make “A free week’s rent if a sale is agreed, or presented home may not sell for top dollar, but Although you own the property you need to the property spick and span before an inspec- maybe $50 every time they allow an open house the cost of no rental income and dressing the keep foremost in your mind that this is someone tion, Mr Winter advised asking your agent to or inspection to take place,” he said. home could actually mean you end up with the else’s home. take care of the little details, like opening cur- “ A store voucher or even a slab of beer, you same,” Mr Winter said.

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