The 5 Biggest Property Buying Mistakes (And How to Avoid Them in Cairns)
Buying property is rarely undone by one big mistake.
More often, it’s a series of small assumptions about suburbs, risk, data, or timing, that quietly cost buyers hundreds of thousands of dollars over the long term.
Drawing on local insight from Cairns-based real estate expert Keegan Lake, here are the most common mistakes we see buyers make and how to avoid them.
Mistake #1: Buying the Suburb, Not the Street
One of the most common and costly errors buyers make is judging an entire suburb with a broad brush.
The Stereotype Trap
“Everybody hears the advice: ‘Don’t buy in the M’s,’” Keegan explains. “I’ve made a fortune purely going against that thinking.”
Suburbs like Manoora and Manunda contain a wide mix of streets, some with million-dollar views and strong owner-occupier demand, others with very different characteristics. Writing off an entire suburb means overlooking standout pockets that quietly outperform.
Granular Knowledge Is Everything
Even in blue-chip suburbs such as Edge Hill or Whitfield, quality varies street by street. A difference of just a few blocks can mean:
Better elevation and outlook
Less traffic and noise
Stronger owner-occupier appeal
Better long-term resale demand
Median suburb data simply can’t capture this nuance.
The Savvy Buyer’s Move
Don’t rely solely on a Saturday open home. “Go back at 6pm. Go back at 7pm,” Keegan advises. “Quite often the street feels completely different after hours.”
Visit at different times, on different days, and observe how the street actually lives.
Mistake #2: Misunderstanding Cairns’ Risk Profile (Especially Insurance)
Out-of-town buyers often arrive in Cairns with heightened concern around cyclones and flooding. The reality is far more nuanced.
Media vs Reality
Yes, these risks exist but they are often overstated in headlines. Major flood events are historically rare, and Cairns has demonstrated resilience and improved infrastructure over time. The extended media cycle around weather events can create far more anxiety than the actual impact.
The Real Risk: Insurance Costs
Where buyers do get caught out is insurance. Premiums vary dramatically depending on:
Flood zoning
Elevation
Proximity to waterways
Construction type
For investors in particular, insurance directly affects cash flow.
Practical Steps Buyers Should Take
Get insurance quotes before making an offer, not after
Check council flood zoning (white, yellow, orange, red)
Shop around — Keegan found a $3,500 annual difference between insurers on his own home
Adjust your excess if you have cash buffers; increasing excess from $1,000 to $5,000 can significantly reduce premiums
Insurance should be part of your feasibility, not an afterthought.
Mistake #3: Relying Purely on Data Instead of Local Knowledge
Data is important but it’s backward-looking. Local knowledge is forward-looking.
Beaches vs Southside: What the Numbers Miss
On paper, southern suburbs like Bentley Park may show strong percentage growth. But data alone doesn’t reflect one of the most important drivers of long-term value: land scarcity.
“Look at the northern beaches,” Keegan explains. “There’s basically no land left.”
With major infrastructure investment underway including the $90 million Trinity Beach shopping centre, established beachside suburbs benefit from:
Lifestyle appeal
Limited new supply
Strong owner-occupier demand
Scarcity supports long-term capital growth in a way raw percentage data can’t show.
The Apartment Example
Apartments in Manoora are currently selling at similar prices to Cairns North. The numbers might look comparable, but the lifestyle, proximity to the CBD and Esplanade, and long-term demand are not.
When choosing between two similar data points, ask:
Which location would you still want to own in 20 years?
The Takeaway
Use data as a guide, not a decision-maker. Local insight explains why growth happens and where it’s most likely to continue.
Mistake #4: Letting Emotion Overrule Strategy
As a selling agent, Keegan’s role is to create emotional connection. As a buyer, your role is to manage it.
How Emotion Is Manufactured
Professional staging, cinematic videos, lifestyle music, all designed to make you fall in love before you even walk through the door. Keegan recalls one buyer who watched a property video 16 times before inspecting. The decision was emotionally made before analysis began.
Separate the Home From the House
If you’re buying a home to live in for 15+ years, emotion has a place but it still needs discipline. Ask:
Can this become the home I want?
Am I paying for presentation or fundamentals?
Often, an unrenovated property on a superior street offers far better value.
The Investment Mindset
For investors, emotion should be minimised. Focus on:
Rental demand
Yield sustainability
Ability to add value
Long-term growth drivers
The best investments are rarely the prettiest on day one.
Mistake #5: Analysis Paralysis (And the Cost of Waiting)
Overthinking is just as dangerous as underthinking especially in a rising market.
The Real Cost of Hesitation
Keegan shares a story of two sisters who missed their ideal home over a few thousand dollars. Nine months later, they purchased an inferior property in a worse location for $30,000 more.
“The market’s going to move,” Keegan says. “That difference becomes irrelevant.”
A Lesson in Perspective
When the right property meets your non-negotiables, delaying over small negotiation gaps can be far more expensive than acting decisively.
Keegan recalls selling apartments for $130k–$150k only a few years ago that now sell for $365k+. Deals that fell apart over $5,000 are now viewed as missed fortunes.
Time in the market matters.
Keegan’s Final Advice
Looking back, Keegan’s advice to his younger self is simple:
“Get into the property market earlier.”
Construction costs alone tell the story, rising from around $1,000 per square metre eight years ago to $2,500+ today. Existing, well-located housing stock continues to benefit from this replacement cost pressure.
The Bottom Line
Don’t judge suburbs too broadly
Understand real risk, not headline fear
Use data but trust local insight
Keep emotion in check
Act decisively when the fundamentals stack up
The right street, in the right pocket, bought with conviction, can change your long-term financial trajectory.
Need help buying in Cairns, Port Douglas, or North Queensland Region? Our team is here to help. Get in touch today.
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