Is Cairns The "Next Townsville"? Hotspots + Property Market Update

Summary

PK Gupta from Australian Property Mastery delves into the current real estate dynamics of Cairns with JD and Mika from the local property office. Once a stagnant market, Cairns is now rising in prominence, offering healthy rental yields and affordable property investments. This episode explores the growth Cairns has seen over the past few years, driven by an influx of people seeking a better lifestyle and the city’s strategic developments. With discussions revolving around the economic outlook, rental market trends, and structural shifts, listeners gain insights into why Cairns could be the "next big thing" for property investors.

Highlights

• PK Gupta discusses his past investment mistakes in Cairns and highlights the city's recent growth. 🌟
• JD and Mika share insights into the current rental market and future property prospects in Cairns. 🏢
• Cairns' lifestyle, low cost of living, and growing infrastructure are attracting more residents. 🌴
• The southern corridor of Cairns is emerging as a booming hub with extensive new developments. 🏗️
• Despite the natural disaster concerns, Cairns offers secure and durable housing options. 🌆

Key Takeaways

• Cairns is experiencing a real estate boom with options for affordable investments and robust rental yields. 📈
• The city's unique lifestyle attracts a diverse population, enhancing its residential demand. 🏖️
• New infrastructure projects and economic growth contribute to rising property values in Cairns. 🚀
• The rental market remains tight, with low vacancy rates and increasing rental demands. 🏠
• Cyclone-resilient construction ensures minimal risk for property investments in Cairns. 🌪️

Overview

In a vibrant discussion, PK Gupta dives into the fascinating transformation of Cairns’ property market along with local experts JD and Mika. Once overlooked, Cairns has now become a hotspot for savvy investors looking for affordable properties with sizable returns. The conversation provides a comprehensive look at the factors driving this growth, including migration trends and economic projections.

As the city expands, the southern corridor emerges as an attractive destination for both investors and homebuyers. JD and Mika clarify how the region's infrastructure is evolving to meet demand, making it an incredibly inviting place to invest. The intricate dynamics of renting in Cairns are also unveiled, showing a market that remains both competitive and prosperous.

The dialogue wraps up by addressing potential concerns regarding natural disasters, with assurances of resilient housing structures that withstand challenging weather conditions. PK, JD, and Mika present a bright outlook on Cairns' future, showcasing it as a city of promise for those eyeing long-term investment gains.

Chapters

• 00:00 - 00:30: Introduction to the Episode and Guests The chapter introduces the hosts and guests of the episode. The host, PK, is joined by JD, a Business Development Manager (BDM) at Can's Property Office Rentals, and Mika, who has decades of experience in rental management. The episode will focus on a deep dive into Can's rental market, which remained stagnant for nearly a decade before a recent revitalization.
• 00:30 - 01:00: PK's Initial Experience with Cairns Property Market The chapter discusses PK's initial experience with the Cairns property market. PK reflects on a past mistake, acknowledging a property deal that, in hindsight, wasn't ideal initially but has since proven beneficial, appreciating more than 50% along with rental growth. Despite personal anecdotes, the focus is on advising listeners who are contemplating investing in Cairns, highlighting the market's continued potential for healthy yields, with possibilities of achieving over 5% gross rental yields.
• 01:00 - 02:30: Discussion on Cairns Real Estate Potential and Market Trends The chapter discusses the Cairns real estate market, emphasizing its affordability. Unlike some locations where high property prices deter investment, Cairns offers a more accessible entry point. The chapter highlights a particular interest in the suburb of Precoid, which, according to the speaker, has underperformed in the past decade and is poised for growth. It touches on the debate around investing in locations based on their historical performance versus potential future gains.
• 02:30 - 05:00: Rental Market Analysis in Cairns This chapter discusses the rental market in Cairns, indicating that despite some assumptions, data shows that areas needing significant development often perform well over a period of 5 to 10 years. The chapter further explores insights from experts JD and Mika regarding the importance of understanding the rental market before investing, as purchasing a property with rental issues, such as frequent vacancies or problematic tenants, can lead to challenges.
• 05:00 - 08:00: JD and Mika on Cairns Economic Shifts and Opportunities In this chapter, JD and Mika discuss the economic shifts and opportunities in Cairns, focusing on the rental and property market. They delve into specific suburbs and the current infrastructure and economic outlook of Cairns, providing a comprehensive overview. The discussion aims to equip listeners with the necessary insights to make informed decisions about potential investments in the region, taking into consideration individual risk appetites.
• 08:00 - 13:00: Building and Development Insights in Cairns The chapter discusses the history of Cairns, focusing on Mika's extensive experience spanning two decades. It sets the stage for exploring the city's present developments and future possibilities. The discussion is informal, encouraging participation from all present in the conversation.
• 15:00 - 21:00: Discussion on Cyclone Risks and Property Durability The chapter discusses the fluctuating property market in a tourist-dependent town, highlighting its sensitivity to external factors like tourist influx and the strength of the Australian dollar. The chapter aims to understand the past and current risks for property investors in such regions, especially considering cyclone risks. It examines how economic events, such as the Global Financial Crisis, have historically impacted this area.
• 22:00 - 24:00: Current Rental Market and Affordability in Cairns This chapter examines the current rental market and affordability in Cairns. The discussion centers on the economic shifts affecting the area, particularly in the wake of COVID-19. Unlike other regions, Cairns experienced fewer lockdowns and milder restrictions, which has influenced its economic landscape and housing market.
• 26:00 - 31:00: Investing in Cairns: Property Management and Market Potential The chapter focuses on the lifestyle appeal and market potential of investing in Cairns. It emphasizes the attractive lifestyle features of Cairns, including backyard pools and palm trees, and highlights the minimal lifestyle changes residents experienced during lockdown periods. These characteristics are contributing to an influx of people relocating to Cairns, indicating a promising outlook for property management and investment in the area.
• 35:00 - 37:00: Personal Insights on Cairns Lifestyle and Attractions The chapter titled 'Personal Insights on Cairns Lifestyle and Attractions' discusses the growing popularity and desirability of living in Cairns. It highlights that reputational spread via word of mouth has played a significant role in attracting people to the area. Moreover, the chapter notes the healthcare sector's prominence as a major employment source, making up around 15% of the job market, more than any other industry in Cairns.
• 39:00 - 41:00: Conclusion and Offers for Viewers The chapter 'Conclusion and Offers for Viewers' talks about various economic sectors, highlighting healthcare as a high-paying and stable industry. It then moves on to discuss the hierarchy of job sectors such as accommodation, retail, and tourism. The conversation shifts to focusing on rental demographics in Kansas, aiming to provide insights to those unfamiliar with the area, such as people from Sydney or Melbourne. It attempts to shed light on the type of individuals who typically rent properties in Kansas, catering to an audience that may not have visited the region.

Is Cairns The "Next Townsville"? Hotspots + Property Market Update Transcription

• 00:00 - 00:30 Hi everyone, my name is PK and here we have JD and Mika from Can's Property Office Rentals. Uh JD is a BDM from the agency. Ma has got multiple decades of rental management experience and in this episode I thought what we'd do is a deep dive on cans. You know cans has been pretty flat uh you know kind of before the co time for almost a decade and a lot of investors ruled it out. I myself have a property in cans which in
• 00:30 - 01:00 hindsight wasn't the best deal at the time. Now it's kind of come good and so that was one of my mistakes. I'll put my hands up. But yeah, in the last couple of years or 3 years it's it's done incredibly well. Grown more than 50% as has the rent. But this episode's not about me. This episode's about those of you who are watching or listening considering buying in cans because it still offers healthy yields. you know, you can still get 5% plus gross rental yields. It still affords that
• 01:00 - 01:30 affordability story. You don't need 7 8 900k million to buy into the can's property market. And one thing that I find particularly salivating, and I'm not pumping it up, you know, there's always goods and bads and pros and cons with any location. What I found really interesting and enticing is that precoid had basically done nothing for the previous decade. So it has a lot of catching up to do. A lot of people feel that you should only invest in locations which have had strong past performance,
• 01:30 - 02:00 but actually the data suggests otherwise. Those locations that have a lot of catching up to do tend to do well in the next 5 to 10 year period. But it's already doing pretty well in the last 2 years. So in this episode, I'm going to pick the brains of JD and Mika to understand their thoughts on the rental market. you know, no point buying an amazing property or suburb that's going to grow if it's going to stay empty or the tenants are going to be, you know, causing a headache or stress.
• 02:00 - 02:30 So, we're going to talk about the rental market and then also the property market proper in so far as where they see the best opportunity. Maybe we'll go into specific suburbs, the infrastructure outlook, the economic outlook of Canes, really giving you a holistic um bird's eye view on what CANs is all about. So you guys can all make a a personal decision per your risk appetite whether this is the next spot that you want to put your next deposit into. Um or without further ado, thank you so much
• 02:30 - 03:00 guys for for making time. No worries. Thank you for having us. Um, all right. And you know, I'm not going to address maybe each of you individually, so whoever wants to like, you know, pipe up and speak, feel free to do so. Um, but let's just talk about the history of cans before we get into the present and in the future. Um, I just said I wouldn't, but maybe Mika, this this is relevant for you cuz you do have two decades of experience right there. Um, you know, cans has kind of been like
• 03:00 - 03:30 this sleeping dog kind of thing for the last decade, maybe even since the GFC. It has this notorious reputation of being a tourist town that's largely fluctuating in its fortunes based on how many tourists come, based on how many, you know, how strong the Australian dollar is, etc. Um what do you see like how was how was cans for property investors in the past and and do you see
• 03:30 - 04:00 any structural shift in the can's economy right now? It's definitely it's definitely catching up as you said and I think that's essentially what it has done with the um with co what happened is we were largely unaffected. we didn't have as many lockdowns and um the the restrictions weren't as uh solid as what they were in other states. So I believe
• 04:00 - 04:30 lots of people sort of run away to to cans and you know looking for the lifestyle. We've we've got the the pools in our backyards and we've got the lovely palm trees and you don't have to leave even if you were were in a lockdown period. you could enjoy your lifestyle still sitting on your back porch or in your pool. There was no real change to us up here in regards to that. So, we've seen a lot of people moving
• 04:30 - 05:00 from south up to cans which uh then obviously people have stayed in cans and and the words got around that it's a great place to live. So I think that co helped with that but I think we are just catching up with the rest of um the rest of the market really right. Yeah, I know that like right now healthc care comprises if I'm not wrong around 15% of the employment uh source in cans and and that's the highest of of any industry
• 05:00 - 05:30 and healthcare is you know tends to be highpaying or at least stable jobs then it's accommodation then retail and then you know tourism etc. in terms of your uh rent book or or like you know your properties under management where do what kind of people do you find are renting in Kansas might might be a pretty obvious question um but for people down in Sydney Melbourne they might be scratching there maybe they've never been to Kansas and they're
• 05:30 - 06:00 like who lives up there like who are these people that are renting what do they do for a living there's lots I mean we do have everybody so there are people that do come internationally and move to cans and and they do their period of uh work for the visa in the rural community. So we might have some of those transient types. We also do have a lot of families. We have a lot of professionals. So we do have you know it's cliche but we have a little bit of
• 06:00 - 06:30 everyone up here. Yeah. Just to add on, just to add on that, I think, you know, um there's a lot of professionals moving to cans as well, just because, you know, you could uh still live a really nice relaxed lifestyle at pretty much a much lower cost than you would in in Sydney or Brisbane. So, you know, we do find that we get a lot of doctors or health care professionals like you mentioned that move to Canon. No, it's a much more
• 06:30 - 07:00 laidback, relaxed lifestyle. Yeah. Right. I know that unemployment I think is less than 3% now. It was like 6% plus just a few years ago. And and it's getting better and better. Of course, most of Australia, especially Sydney and the big cities are experienced like a experiencing a cost of living crisis with, you know, inflation going up and everything basically going up. What's the kind of vibe in in cans? Like is it somewhat insulated from that because
• 07:00 - 07:30 salaries are higher or are you guys or not you guys per se but are people there also feeling it? What's what's the word on the street? Well, I think I think there's there's something for everyone, right? Um we found that we just recently got a basic 3bedroom one bathroom unit. um you know pretty much sitting between the 500 550 uh mark for a rental and we had it on
• 07:30 - 08:00 for 2 three days with about 20 applicants. So you know there's a big portion of the market that you know kind of want to go in that more affordable kind of properties. Um you know a family that that doesn't want to go over the $600 mark. Um, but then you can also find something really nice in the in the beaches, you know, where you pay a bit pay a bit more. Right. Right. Um, I know that maybe 5 years ago, there was maybe
• 08:00 - 08:30 even six or seven years ago, there was a a big pipeline of building approvals and a lot of like building activity that happened, especially like far south. I don't know if that's a nomen kletcher you guys use, but in the southern corridor. I think that's a lot of that has been built and a lot of that is is drying up. Um, if I'm not mistaken, but what what are you guys seeing? Maybe cranes is the wrong question cuz that that would be more in the city, but are
• 08:30 - 09:00 you seeing a lot of new detached houses being built around cans or is that is that no longer the case? Yeah, there's definitely lots of um lots of new homes being built because the the supply and demand in itself, you know, that's what another reason why it did drive the prices of rent up because, you know, we had an influx of people moving to cans. We also then had an influx of people buying houses that had tenants in place
• 09:00 - 09:30 and of course there was no new builds being built at that time. So the the tenants that were being vacated from the properties had nowhere to go basically. So um yeah, so then obviously we've got Cutters Rise down in in Gordon Veil that does the quarter acre blocks and you know there's a big a big um expanding suburb down there. It's close
• 09:30 - 10:00 to the city, relevantly close. Like us can people would say it's far far away, but in in actual fact, it's like 30 minutes away. So for someone coming up from down south that's used to traveling an hour to get to work, it's actually quite close. Um it's a beautiful suburb down there, but there's lots of growth in respect to new builds because the demand is there. there's just there's not enough houses for the amount of people. Um and then, you know, obviously
• 10:00 - 10:30 the council understand they've got to release, you know, the um the land, you know, they've got to allow the the developments to occur. So, that's good. And that's what we're seeing is there's lots of new builds happening. Um they did Trinity Park and things like that a few years ago and now and that sort of expanded. Lots of new builds out there. and now we're seeing it down south. So, we are growing, right? I mean, that's
• 10:30 - 11:00 good because I think there was a 12 month period in which at least in that southern corridor like um like Edmonton, Bentley Park, Mount Sheridan, etc., there was like 20% growth in the rental market in terms of rents went up like 20% if not more in just 12 months, 18 months and there was just like nowhere for tenants to go. So, it's great that they're getting more options. Are you finding that tenants are fine with living in Gordon Veil or would they much prefer be in I suppose more established
• 11:00 - 11:30 suburbs like Mount Sheridan, Bentley Park or you know White Rock etc. Like is that a all right then we'll go down cuz we have to or are they fine with it? It's like not so much of a bigger drive. No, it's lovely down there. They've built the new um the new shopping center and things so it's like a little city in itself. So people are wanting to to actually move there, do you think? Yeah, I think pretty much Gordon Vale I would say is going to show a lot of growth over the next few years. You know, other
• 11:30 - 12:00 than getting the Willies up there and the big shopping center um you know, Cut the St. is a new development which actually um is being done by one of our directors and um they released a whole bunch of blocks. We've been getting, you know, we on some of the properties we're getting 750 per week, you know, which is amazing for Golden Gordon Veil. Um, you know, they're doing a big um health facility there where it's going to be doctors um you know, physotherapists and
• 12:00 - 12:30 all those and they're also planning on doing a um age facility there as well, you know. So, all of those would significantly increase the prices around Gordonville. So I think the that's kind of where the growth is sitting because there's just not really any land available. So you know I guess on the other side as well because of the the influx of um of of people you know coming from driving from Trinity Beach
• 12:30 - 13:00 is pretty much taking it the same time as coming from Gordonville into the city. So, you know, whether you're doing 30-minute drive or 30 minutes in traffic basically at the same time. Right. Right. Yeah. I always think like cans has a natural constraint in terms of building because obviously you got the ocean on the right, the mountains etc. on the left, the southern areas where you can can build out. But I was wondering like, you know, what do the locals feel about driving 30 minutes or
• 13:00 - 13:30 maybe an hour? It sounds like it's not a not such a big deal. I mean those the the drive is probably pretty beautiful. I think I visited my Mount Sheridan property once and I landed in Cans. I was like I don't mean to be disrespectful to any Can's people out there but can proper this was like ages ago. It's like 2016 or something. I was like oh this is not that Yeah. I don't know if I want to be in Can's like CBD. And then I drove out to just I mean I wasn't going to knock on the door. I just like wanted to see the house that I
• 13:30 - 14:00 had bought and I was like, "Oh, I can see myself living in Mount Sheron. It's like super nice." Like you said, palm trees and your greenery and it's next to some like hills or some rolling hills. It was really really beautiful. And I was like, "Okay, maybe cans folks think this is like super far out to travel to the CBD, but apparent apparently not." Um, you know, one one question I had was sometimes with these new developments, the developers can often misjudge the demand
• 14:00 - 14:30 and they build too many houses or or too many lots and then, you know, of course, they sell them in in tanches or in in in bunches, but sometimes they then struggle because the demand dries up and therefore prices stagnate. So when it comes to Gordonale or or any any other place that is similar, do you guys feel that there's significant demand to continue absorbing this land release and
• 14:30 - 15:00 construction activity for years to come? I believe so. Yeah, the the demand is high and I don't think like I said, we're just catching up to the rest of the world basically and people are realizing it's a great place to be. It is a really nice place to live and we you know it is close. We're quite compact and I know I complain about 30 minute drive but that's not really that far and you know the the infrastructure and the new roads and the highways and
• 15:00 - 15:30 and all all of those aspects are being improved. So it it used to take 40 minutes and now it takes like 25 to 30 minutes to get to Gordon Bale and and there's more accessibility down there. you've got bullies and and you know it's just going to continue to grow basically, right? And can you just keep building? Like is the council or the city going to continue releasing land even south of Gordonville? I don't know
• 15:30 - 16:00 how to pronounce this, but like Goldsborough or Little Musk Mulgrave and like towards Alumba. Like is there a lot of land that is that agricultural land or could they release it for low density residential? So I uh there was actually an article just a few weeks ago in the can post where they were mentioning about the the lack of the infrastructure because you know can necessarily plan to have such big growth you know a few years ago. So
• 16:00 - 16:30 um that's probably the first thing that would need to be upgraded is the infrastructure to accommodate all that new buildings all the new builds. So I think it it wouldn't be a thing that happens overnight. But I guess at the end of the day that's the only pretty much the only um way can expand is moving out that way. So you know it's going to happen nonetheless and then you know they wouldn't be looking at infrastructure if they didn't believe that it was going to continue to grow as
• 16:30 - 17:00 well. So they obviously do their homework and know that that's where we're headed, right? So I know like in the Gold Coast and in the Sunshine Coast during CO and it hasn't really stopped this phenomenon of people from Melbourne and Sydney predominantly uh retirees they come and you know they sell their Sydney or Melbourne home and you know they've had it for like 20 30 years it's gone to the moon and they sell it for like three or four or five
• 17:00 - 17:30 million dollars and they buy this amazing place in the Gold Coast for just $2 million or the Sunshine Coast Is that the typical profile of uh of folks that you're seeing coming into cans from down south or is it young couples and and others? Definitely not retirees, is it? It's yeah it's probably more yeah I guess I guess for us you know in our industry you know because we
• 17:30 - 18:00 predominantly work with you know investors as such you know we don't necessarily find that um you know it's kind of across the board I would say if anything we probably mostly have young families um you know on our rental books but I guess the stigma you know how it used to be is that you retirees would come here and your normal holiday your backpackers um that would come here but you know it's not I wouldn't say
• 18:00 - 18:30 that um demographic wise can is mostly retirees there's definitely um a big percentage you know and it just makes sense cuz it's such a lovely place to stay it's laidback you got you know the the barrier reef just on the outskirts so you know it does make sense and I guess um value for money is much better uh spending cans. Yeah. Right. Um and there
• 18:30 - 19:00 is one question I always get from folks that you know this is all good PK can sounds like a good opportunity and I personally don't don't mind if people buy there or not. Maybe you do but I don't really have skin in the game. Um what do you think about the cyclone risk? Is is it you know Kansas had cyclones before people from down south kind of brand places like Townsville, Cans, other even Brisbane these days, right as being uninvestable because of
• 19:00 - 19:30 this this risk of of natural weather disasters? How do locals feel about that? Do you guys I mean are houses built differently? Do you guys, you know, are you like losing sleep over that during storm season or cyclone season or what advice would you have for folks maybe in Melbourne, Sydney wanting to invest, but like uh I rather just not take the risk? H is built for for that
• 19:30 - 20:00 risk as well. So we we know there's cyclones and we pretty much unless it's a category five, we don't really do much. We, you know, we prepare that, you know, as best we can. You obviously get lots of warning. Uh we encourage our investors and our um our property owners to, you know, regular maintenance and and and preventative maintenance on properties. And that's something that all our staff are are well trained in
• 20:00 - 20:30 and well verssed in. And it's more the prop the properties are definitely built for that. It's not so much like I don't think we've had a couple of cyclones in the last few years and we have had a fence fall over and we've had in a storm we had a tree that fell down. So we don't have a lot of damage to properties unless for example Yassi and Larry they
• 20:30 - 21:00 were quite extreme um and really did some damage down south towards the Tally region but we don't see a lot of the impact of the cyclone itself. So I just think they've just built differently and the risk isn't really as bad as people think. And as I said, us locals, we sort of don't really do much unless it's a category five. Uh
• 21:00 - 21:30 we just it's just part of our everyday life almost. Yeah. When you when the recent cyclone came through Southeast Queensland, you're probably thinking, "Oh, it's a we get these like every year." It's like, not that it's no big deal. I mean, Brisbane's a different place. It's not built in the same way, but it's like, you know, we get we get these like bigger site. I certainly thought I had property in Cans and Townsville, other places, and I was like, "Okay, we're gonna get through this just fine. People are overreacting." But, but hey, I'm glad it didn't it wasn't as bad as they they
• 21:30 - 22:00 said it would be. But it is the the fact that, you know, Brisbane isn't built for cyclones. So, I I was concerned for Brisbane, but, you know, even though it was only a small category cyclone, but it's just up here we're we're wellversed. We've got the infrastructure for the flooding. you know, we we've all got the cyclone screws in our roofs and things like that, you know, like we actually we prepare for it and that's why we don't get as much damage as, for example,
• 22:00 - 22:30 somewhere else that isn't prepared for it. Yeah. Right. Okay. Good to know. And you know the rental market coming back to that point it was very strong especially at least I can talk about my property when we're looking for new tenants or increasing the rent per market like it was very strong around especially 2023 2024 I think the last 6 months uh it's just the the rate or or the tightness of the market is just
• 22:30 - 23:00 softened out a little bit. That's just my own experience. I mean, I I was still able to get a higher uh rent, but not at the same trajectory as I was over previous years. I mean, this is there's obviously like different suburbs and different pockets and markets within markets, but how would you what are your thoughts on the rental market? like are you seeing vacancy rates start to edge up albeit from a very low base or are you seeing more of the same rents
• 23:00 - 23:30 continue to rise at a as at a decent clip? I think it it is starting like like you said to soften but the it's there still very tight market. the rents are still increasing. Uh pro probably not as it, you know, like you said, on the same trajectory as it was previously, but there's still it's still increasing. It's it's still the demand is there. Um the people are there. We
• 23:30 - 24:00 just we're not having property sit there for for weeks on end. We're getting good quality tenants. So, you know, it's it's still a very good market. Yeah. Yeah. No, that that's that's good to know. Um, are you finding it still to be affordable for for renters? I mean, we we all know the rental crisis across Australia. I think nationally renters are paying more than 30% now of their of their income in
• 24:00 - 24:30 rent. Um, somehow they're still, you know, it's it's still working. The system is still working. Are you finding rental aras to be increasing in cans or in different suburbs or is it still very much affordable? So I I think you know the because of the big demand I think now more than ever you know tenants are aware that they shouldn't be in are you know because there's not a lot of stuff you know
• 24:30 - 25:00 there's so many applications coming through on property so landlords can pretty much pick and choose. So if you're finding a a tenant that's been in a you know that's a red flag already. So you know because there's so many applicants you much you're probably going to play it safe and go with someone that's got a clean record. So in that perspective I think it's you know it's a good thing for investors because you know there's a um lower re but you know Mika might add on to that. No
• 25:00 - 25:30 definitely and it's all about your re management as well. So, you've got to have your quality team to be able to assist and and and assist the tenants if they do find themselves in difficulty as well. You know, you you want to help manage their situation and and get them in the spot that they need to be. So, education to the tenants is our key thing and giving them uh I suppose the um the tools to to have a good record
• 25:30 - 26:00 and to continue that. So we're we're very big on the education side of it. So we don't see a lot of AR. I'm not sure about other agencies, but we definitely have a very low ar rate in our office. Right. Right. And just like all over Australia, you know, if someone's in Sydney or Melbourne or Brisbane or any place, you can buy property interstate by using good property managers. They do the inspections most of the time. Not
• 26:00 - 26:30 sure how it is with you guys. Um, for free, you know, and and the idea is that once the investor, this borderless interstate investor is satisfied with the property, you know, then you get a building and pest inspector through as well for that extra layer of due diligence. You negotiate, etc. Sign the cont all that sort of thing. And then you give that property to the rental manager or the property manager who first inspected the property. And in that way you can transact with peace of
• 26:30 - 27:00 mind with all full due diligence down local boots on the ground knowledge and knowhow and experience basically without a buyers agent. I is that a process that you guys do as well and maybe you can just walk through let's say my name is PK which it is and um I live in Sydney which I don't but let's just go with that. Uh, and I don't know, I'm interested not to pump my own suburb. Um, don't buy buy there blindly anyone, but let's say Mount Sheridan, and I found this property,
• 27:00 - 27:30 whether it's off real estate or domain or maybe I've made a few phone calls to local real estate agents, um, and one of them has offered me an offmarket deal, and I'm like, "All right, I need to contact Mika or JD. You know, I've never been to Cans. I don't know the first thing about the street or the property. I need it to be inspected. How do you work with someone like that? Yeah. So like I found that establishing a relationship with the investor even
• 27:30 - 28:00 before they buy the property is is quite crucial. Um you know just give them peace of mind and you know I think as an investor you you need to do your due diligence as well and know what kind of fees are um you know what the fee structures are in cans. you know, I've assume it's a bit different in the bigger suburbs where, you know, having an indication of what you're going to pay for management, you need to consider that into your actual investment, you know. Um, but I do for a lot of
• 28:00 - 28:30 interstate clients, you know, I help them with appraisals a lot of the times. Um, you know, I do three or four appraisals for them before they actually end up buying a property. So we already established, you know, a pretty good relationship, you know, because that's what I do for a living. I I inspect properties. I know the rental market, so I can give them a good indication on, you know, on what rental return and the demand that they will receive on that property. Um, so yeah, but I'm not a building and best inspector myself, but
• 28:30 - 29:00 I'm happy to do inspections for for clients with the hope of securing the management. Um, so I do offer that service and that's included purely just to get the to win over their trust and and to get the business uh for us. So, you know, a lot of the times, you know, what if you're in the state and you're buying stuff, you're purely going based photos. You don't know the areas. Um, you don't necessarily know the condition cuz a lot of the properties um is virtually staged as well, you know. So
• 29:00 - 29:30 something simple um if it's a vacant property might go there and do the inspection and there's no um no curtains or blinds in the house. You know that's something that an investor need to be aware of that they have to have that that as a minimum housing requirement. You know so there they they need to um be aware that there's certain costes we're going to need to put into the property after settlement to get it to a standard where we can actually rent it.
• 29:30 - 30:00 Yeah, that that's that's awesome. I think it Yeah, when I first discovered this method of not using you guys, but like working with you guys to to get the properties inspected back in 2011, I was like, this is a no-brainer. And in that way, I can invest anywhere across Australia knowing that someone's inspected my house and you know, they know what they're doing. Like, Mika, you've been there for two decades, so that's not nothing. you know, that's a lot of experience and that's a lot of on
• 30:00 - 30:30 the ground knowledge. U I don't want to uh um uh hold a gun to your head or anything like that, but if I know everyone will want me to ask you this question like if someone has 600K to spend or let let's even stretch it to 700K. You know where this question is going, right? Um I know that you're property managers. You're not in the business of identifying suburbs that will boom. And so, you know, let's take all of the following 2 minute, 3 minutes with that disclaimer. But knowing what
• 30:30 - 31:00 you do, where do you see um across cans, even up to 800K maybe, where do you see across cans, you know, where rents are going to rise the most over the next 1 or 2 or 3 years? And perhaps, you know, an educated guess where property prices are likely to perform the best. Amazing. Oh. Okay. I I personally would would invest in in Gordonville, you know, just
• 31:00 - 31:30 because and I probably end up going for a bit of a older property, you know, because of all the new builds and all the um things happening there. I think that's going to push our prices, but also I'll be looking at something that's high in demand. And I think you know that 3bedroom one bathroom try and keep it like under let's say between 520 and 560 rent I think there's a massive amount of um clients that fits into that
• 31:30 - 32:00 category. You know if you're going to go for something bigger like a four bedroomedroom um two bathroom you know I wouldn't want to I wouldn't expect a rent over 700 unless it's a really nice property. You know, I think at the end of the day, making sure you buy something that where the de where the demand is, you know, um with a lot of clients because, you know, buying something over 800, you know, it's probably a bit more risky opposed to buying two cheaper properties and
• 32:00 - 32:30 spreading your risk. Um I think personally that would be what I would do. Yeah. Yeah. So, you wouldn't probably need that amount. You could get something suitable for a lot less or like JD said, you know, you can buy two or combine that rather than just getting a large extravagant house. But yeah, you definitely want that median uh property. And I would definitely be looking down
• 32:30 - 33:00 south the southern corridor. So from Bentley Park, Edmonton, Gordon Vale, even Goldsborough, it's definitely growing down there as well. And that's the sort of the rural lifestyle that people are looking for. You don't have neighbors right next to you listening to your TV with you. So it is good for that aspect as well. So you're still in the city, but essentially you're living in a rural area close to the city. So you're
• 33:00 - 33:30 getting the best of both worlds really. And yeah, that Gordon Veil region is definitely the place where I would be looking. Okay, that's interesting. Sorry. I think, you know, it might be a bit of a um, you know, wild card, but you could probably try and also accommodate, you know, because of the new um, health center that they're going to be building in Gordonal as well with
• 33:30 - 34:00 the HKare facility. You know, I think if you go for like a nice new build or like a more bit more expensive property that kind of caters for your contract doctors, you know, that could potentially work as well cuz, you know, they're not going to necessarily want to stay in the city, drive out there all the time. So, I do think there's a little small niche market that you might tap into as well. Okay. It's very
• 34:00 - 34:30 interesting. It's good to get the local uh yeah the local tip. Uh but of course everyone do your due diligence and see if it's right for you. Um maybe before we finish up, can I ask you like what you know what's exciting for cans on the horizon like you know economically or or socially you know or just uh in terms of the vibe the people what are people excited about in Cans? What are they looking forward to? what's what's CAN's got to offer to uh you know to to really
• 34:30 - 35:00 uh lift spirits community spirits but also drive the region forward in the la in the next five or so years I think it's definitely lifestyle you know we all move here for that lifestyle so we wouldn't want cans to change too much and I think you know we're excited that we do get to live a holiday lifestyle every day, but we're not on holidays, you know, like it it feels,
• 35:00 - 35:30 you know, you sit down on your back deck of a morning and you have your morning coffee and it feels like you you don't have to rush off to work. You you know, you don't have to leave because you don't have an hour's worth of drive ahead of you. You can enjoy the day and the days seem longer. So, I just I really think it all comes down to lifestyle. That's my opinion anyway. Right. What about you, JD? Yeah, I think like I I obviously enjoy can to me the biggest um positive to can
• 35:30 - 36:00 just you know as a local staying here you know having all the tourists come here like I enjoy sitting out on my balcony as well and I'm happy to be you know have a nice espanard view so you know seeing all the people jog there having nice walks you know they're all in holiday mode you know that kind of you know is a good thing for me And just on a side note, we do have a nice attraction coming um should be between June and July. Um so they're doing a
• 36:00 - 36:30 Egyptian exhibition center uh which would be just next to the aquarium uh which is also something really exciting for cans cuz there's not constantly new tourist attractions coming up. So I think personally that's a pretty big uh thing which I'm excited about. Oh, nice. I didn't know about that. It's the last thing I would have expected something to do with Egypt in Can. But why why not? Yeah. I think people don't realize that,
• 36:30 - 37:00 you know, I think cans what is it like 150 160,000 people like broadly speaking live there. And it's Queensland's fifth um fifth biggest city. So, it's it's not a small little town anymore. And I think it's just going to go from strength to strength, especially with Australia's aging population, aging demographic. More and more people want that lifestyle that you're talking about. Of course, you both are very young. Um, but the sooner you can get it, you know, the
• 37:00 - 37:30 better. And yeah, so long as population continues to grow in Australia, I think cans will always be a really attractive location. I think longterm it's got a lot of catching up to do like you mentioned a couple of times Mika. Um so I think that really that's a real tailwind uh for cans. Uh guys was there anything that uh I haven't asked you about cans or or you wanted to say um before we finish up.
• 37:30 - 38:00 Well can is a great place to invest in I think and it will just continue growing. Okay. and do do your own due diligence. Right. Right. Nice one. Mika yourself. Any last words? No, I just think that you know when you are from an investment point of view, when you are considering your property managers and things like that, you really do need to again do your due diligence when it comes to the experience that people
• 38:00 - 38:30 have. It's not all about the fees. I I work in the trenches, so I'm I'm the property manager, the rentals general manager. So, I know JD has a different aspect on that, but you know, you need to have a good relationship with your property managers uh to make your investment work no matter where you are. Um, and you need to be able to trust and rely on your property management team. So, yeah, that's what I would sort of end with just Yeah. No, good one. That's that's a really good point. And I should point out for everyone who's watching or
• 38:30 - 39:00 listening, u I don't actually have a relationship like a a property relationship with CPO. So all of this there's no conflict of interest. I think what they offer in management fees is actually a little bit less than what I'm paying. So maybe I'll switch over, maybe not. But yeah, I just wanted to to say that there's there's no kind of like backdoor innuendo with this. I just truly trying to provide value uh for everyone. And I I have to say a whole bunch of clients have bought in cans over the last I think 2 or 3 years
• 39:00 - 39:30 especially in that southern corridor. Now it's starting to become you know I think we were buying sub 500 sub600. Now those same locations are you know a little bit over 600 maybe even more than 700. So we're buying less than what we were buying but we're still buying there. I still am very bullish for the next uh number of years on cans and of course long term as well. But uh I want to thank you both for for making time very early in the morning. I appreciate
• 39:30 - 40:00 uh you taking the time and if anyone wants to reach out my voice is going all of a sudden. If anyone wants to reach out to JD or Ma you can uh what's what's the website? Uh so just uh CPO CPO.com um easiest would just be just Google property office and you will you will find us. Perfect. And of course I'll um share this in my Facebook group as well
• 40:00 - 40:30 and I think uh you're in that right JD. So I'll I'll tag you there and then people can can get in touch. But um if you have any anyone's watching, listening, if you have any further questions, please comment in the YouTube comments or in the Facebook group comments and I'll try to my best to answer every single question and and maybe Ma or JD can also chip in and try to add some value. But uh thank you so much guys. Sorry Pa. Well, PK, while we're on adding value, I just want to
• 40:30 - 41:00 mention that anyone any investors watching this having property in cans, um, if they did consider us and wanted to move over, we will offer 10% discount on our rates. Um, just for them mentioning that they've seen this video and it came via your your group. Oh, cool. I didn't know that was coming, but yeah, it's always good. Who wouldn't want that? But thank you, JD. Thank you again, Mika. Thank you. Thanks, Be. And thank you everyone for
• 41:00 - 41:30 watching, listening. If you got value, hit the subscribe button, give it a like, and uh I'll see you in the next one. Take it.