Real Estate
21 May, 2026
Know your buying capacity
PROPERTY investors in Cairns are being urged to look beyond bank borrowing limits and carefully assess their own financial comfort levels before entering the market.
Property strategist Christine Williams from Smarter Property Investing said many buyers focused too heavily on how much banks were willing to lend without considering lifestyle costs and long-term financial pressure.
“People think the first thing they need to understand is their buying capacity,” Ms Williams said.
“A bank may tell you today you can borrow $500,000 or a million dollars, but are you really comfortable with borrowing that amount of money, even though you want to keep up your lifestyle?”
Ms Williams said buyers needed to factor in everyday expenses, including gym memberships, streaming services, travel costs and rising living expenses, before committing to a mortgage.
Speaking about the Cairns market, she said the city had surprised many observers during COVID and remained supported by multiple industries beyond tourism.
“Cairns has a lot of people who think Cairns is driven by tourism,” she said.
“Yes, it is an important part of Cairns. But did you know it’s number four on the list of seven?”
Ms Williams said defence, education and medical industries were key drivers alongside tourism, horticulture, agriculture, retail and hospitality.
While she said the Cairns market had delivered “fabulous capital growth” and strong rental returns over the past 12 months, she believed growth was likely to plateau in the coming years.
“I feel the market is still very good, but it’s certainly not going to be exceptional over the next three to five,” she said.
Ms Williams said buyers should adopt a long-term approach to property investment rather than attempting quick “flips”.
“My main mantra is a 10-year commitment,” she said.
She also urged buyers to seek professional advice before signing contracts, warning many first-home buyers overlooked costs such as stamp duty, conveyancing, building inspections and body corporate fees.
“There are unscrupulous people out there,” she said.
“If you are wide-eyed and bushy-tailed, and the focus is on getting your first home, because you may want to take up the incentives from the government, you can actually miss a line by missing really important things.”
Ms Williams said body corporate fees in cyclone-prone regions like Cairns could significantly impact household budgets and should be fully understood before purchase decisions are made.
She said investors should focus on building long-term generational wealth through careful planning, strong cash buffers and an understanding of their personal risk profile.
For more information, visit the Smarter Property Investing website: www.bit.ly/4dyQyQa or call 1300 736 754.
