As the median house price in Queensland reaches $420,000, Cairns residents are turning to rent-vesting as a viable alternative to traditional home ownership.
Our reporters are based in Cairns and cover local government, business and community. The Daily Cairns is independently owned and editorially independent — no political party, council or commercial sponsor decides what we publish. Read our editorial standards →
Cairns residents are facing a daunting reality: the median house price in Queensland has reached $420,000, making it increasingly difficult for first-home buyers to enter the market.
This trend matters now more than ever, as the tourism workforce demand in Cairns continues to drive up rental prices, leaving many would-be buyers wondering if they'll ever be able to afford a home of their own. With Chinese investment returning to the region, the pressure on the housing market is only intensifying. The Northern Beaches, including suburbs like Smithfield and Trinity Beach, are particularly feeling the pinch, with prices for even the most basic homes skyrocketing.
In Cairns, the rent-vesting strategy is gaining traction, particularly among young professionals and families who want to own a home but can't afford to buy in their desired neighbourhood. For example, a couple might choose to rent a home in desirable suburbs like Edge Hill or Whitfield, while investing in a property in more affordable areas like Manunda or Mooroobool. Organisations like the Cairns Regional Council and the Queensland Government's First Home Owner Grant program are also playing a crucial role in helping first-home buyers navigate the market.
Rent-vesting by the numbers
According to data from CoreLogic, the median rent in Cairns is currently around $440 per week, while the median house price is $380,000. This means that for a buyer to purchase a median-priced home, they would need to save around $38,000 for a 10% deposit, and then pay around $1,800 per month in mortgage repayments, assuming a 4.5% interest rate. In contrast, rent-vestors can put their money towards an investment property in a more affordable suburb, such as a two-bedroom unit in Parramatta Park for around $280,000, and rent a home in their desired area for a fraction of the cost.
As the Cairns property market continues to evolve, it's likely that rent-vesting will become an increasingly popular strategy for would-be buyers. For those considering this approach, it's essential to do their research and seek advice from a financial expert. The key is to find a balance between renting a home that meets your needs and investing in a property that will provide long-term returns. With the right strategy and a bit of patience, rent-vestors in Cairns can achieve their goal of owning a home, even if it's not in their dream neighbourhood – at least, not yet.
Partner Content
Sponsored
Reach Cairns readers with Partner Content
Sponsored placements run alongside our editorial coverage. Clearly labelled, your brand sits in front of the morning audience that reads the city's daily.
