Cairns or Darwin?

Hi Dev,
I live in Cairns and consider it a fair place for investment. prices seem stable: possibly growing at about CPI. You would not get much for 150k: maybe a older small house 15 min from CBD or older 1-2br unit within 5min of CBD. Returns are mostly well and truly negative.
HOWEVER, compared to prices, values and returns in larger centres, Cairns would compare favourably. Also not a bad place for a tax deductable property inspection trip!
Cairns is relatively reliant on tourism, and thus vulnerable to threats to this industry (eg SARS) but its economic base is broadening, with increasing education and industry.
My impression is that darwin is more expensive, but also has a stronger economy.
One thing to remember about the north is construction and maintainance costs are higher than the south, due to cyclones, high rainfall, heat etc:

On balance, I would recommend Cairns for property investment.
Dallas

“If you look long enough into the void the void begins to look back through you.” Nietzsche

The weather is gorgeous, 25-28 during the day, mostly blue skies with occasional showers to keep things green. Most nights get down to 20degrees, rarely below 15.

I meant to take the trip once you own the property!

Just searching Cairns at realestate.com.au turned up plenty of units in your price range, and also an ad for a cashflow positive 4br house for $270k
I can’t comment on the details but it may be worth a look for some who are always asking where can we get cashflow positive property (I suspect this is after depreciation etc).
But at present in Cairns there is high demand and thus high rents for “executive” type 3-4 br 2 bth homes.

My point with SARS etc is not that SARS will necessarily occur again, but just that an economy dependant on one industry is vulnerable. No one saw SARS or bali nicghtclub bombing coming, but it would have decimated local tourist industries.

Dallas

“If you look long enough into the void the void begins to look back through you.” Nietzsche