Most investors are looking for any way to maximise their returns with either increased cash-flow, equity or added value to their asset or portfolio. Done well, one can avoid a capital improvement situation with the addition of a new or upgraded air conditioning system. This is a win-win for any investor with decreased maintenance costs, an attractant for tenants, and potential yield increases/rental returns.
Cairns’ property market is an evolving entity but nonetheless fruitful for investors. Median prices for all units have been climbing steadily since 2012, and rental yields have ascended from around 5% in 2010 to a very healthy 7.5-10% at present, depending on the suburb your property is in.
The numbers for all houses are not quite as good, so it would make sense to have new, or upgraded air conditioning installed for your tenants, as well as for the benefit of one of your most valuable assets.
