Despite the pandemic lockdown, both home buyers and property investors are buying up fast. Perhaps many are also taking advantage of the lower prices due to the pandemic. But for property buyers that look into long-term investments, they are usually torn in choosing between a blue-chip location and high-risk, high growth location, especially in the progressive city of Cairns.
Blue-Chip Location
Blue-chip refers to a reliable location that consistently delivers strong rental yields and slow, but steady long-term capital growth. These locations weather all economic conditions and still remain stable, reliable, and profitable. Normally, blue-chip areas are located within the 10km radius from a central business district (CBD). The areas are also accessible to abundant public transport, parks, and shopping, cultural, and entertainment centres. For this reason, they are more expensive than high-risk locations and “affordable” areas.
High-Risk, High-Growth Locations
These are areas with “potential” massive rental or investment market, but only because of a particular factor or occurrence, such as sudden increased job opportunities. However, any potentials can end as quickly as it began, often with very little warning. Thus, investors may be left with an empty home investment with no rental potential.
Unfortunately, the ongoing pandemic is the best example for the above. Many potential high-risk locations lost their high market value for rentals, and no one wants to buy into high-risk areas these days.
A Real-Life Showdown
In these pandemic times, blue-chip locations will always come out the clear winner. The most that high-risk areas can be are wild cards, and with the present situation, high-risk areas are not suitable investments at present. Yes, buying into a blue-chip area may be expensive at first, but in the long run, expect a solid investment with consistent long-term growth.
Cordenos Real Estate
An example of a blue-chip location is Cairns in Queensland, and its suburbs. Cairns is the 5th largest city in Queensland with continuous economic growth potential even during the pandemic. This makes investment in prime blue-chip real estate in Cairns locations quite viable and logical. For instance, you can check out the 1214 M2 Block Blue-chip Inner City Renovated Highset Queenslander, located only 1.5km from Cairns Central Shopping Centre. This and other blue-chip properties are available from Steve Cordenos Real Estate. When it comes to real estate in Cairns, Steve Cordenos is the leading real estate firm. Visit their website today at https://cordenosrealestate.com/ or go directly to https://cordenosrealestate.com/property/bluechip-inner-city-renovated-highset-queenslander/.