Finding a Cairns Home loan…. together

FAQs for Cairns Home builders

Time is on your side

When purchasing property off the plan, it gives you much more time than when purchasing an already established property. The building period can take a minimum of 12 months, so using this time to save will reduce the amount that you will need to borrow. The benefit of this is that in the long term, you will pay less interest over the life of the loan.

New home, no problem

When purchasing a new home, there are many off the plan options. This means that the property is already designed with fixtures and finishes. With some off the plan builds, you may have the option to tailor some features of the design, however make sure to check the contract for any hidden or additional costs to do so.

First home buyer?

If you have never owned a home or built before, then the first home buyers grant may be available to you. Contact our Cairns home loan specialists today to see what incentives are being offered for local residents. Here’s our handy stamp duty calculator to check if there are any concessions available for brand new homes.

Investment incentive

Did you know that by building a brand new home, you may receive a higher tax depreciation allowance on fixtures and the building? That’s one of the reasons why off the plan builds are heavily marketed to investors.

Always do your research on current rental markets and trends, particularly in transient tourism towns such as Cairns. Basing your income on limited rental guarantees can cause problems in the future. By knowing and understanding the past and current market trends in the area that you are considering to build in will mitigate the unrealistic expectations on receiving a rent that is higher than the market value. When researching the market, look at available properties, their condition and the rental price. Keep an eye on how long the properties have been advertised in that specific area. Another suggestion is to contact a property manager in your local area – they will be able to give you insight into the current market. Ask them about availability, vacancy periods and the market rent for a property that matches the description of the one you are considering purchasing.

Beware a boom

Bricks and mortar has historically been a long term performer when it comes to investing. This doesn’t mean that the market won’t fluctuate. Take into consideration the current economy as well as the current supply. By looking into the development of the Cairns area, take into account the infrastructure as well. A new development of apartments without access to schools, shops, or businesses isn’t going to be in as high demand as one that is.

Be discerning about the developer

Take you time with your research. Visit their display homes and finished developments. Talk to those in the local community and always read their reviews.

Top tips

• Contact JGM Lending & Finance to chat to a Cairns home loan specialist today
• Are you able to inspect the site before and during construction?
• Check the contract conditions for customisable fixtures and finishes
• Are you able to receive the deposit back if the build doesn’t commence by a certain date?
• What happens if your situation changes?
• Are you able to on-sell the build during construction?
• Prior to signing any contract, seek legal advise from your financial advisor

Need a Cairns home loan?

We will source the best loan for your situation. Send through an enquiry to speak with our mortgage brokers today.