Investors
How is an investment property valued?
An investment property is valued on comparable sales like any other property, but investors also look closely at its rent, yield and running costs, which can lift or lower the price within that range.
Does rental income change the value?
Yes, especially when investors are the likely buyers.
Investors compare the price with the rent: the gross yield. They then subtract rates, insurance, body corporate fees and management to see the net return. A property rented below market, or with a lease ending soon, can still sell well if the buyer can see the upside. A long lease at a strong rent suits investors but can put off owner-occupiers.
Have these ready for an appraisal: the lease, the rent ledger, the latest condition report, and your current insurance and rates notices.
What do investors look for in Cairns now?
Tony Williamson says many buyers are now interstate investors who buy on yield rather than location, often through a buyer’s agent and sometimes without seeing the property. (Elite Agent, “Buying with a calculator”, February 2026)
The Cairns region’s rental vacancy rate was below 1% in Q3 2026. (The Buyers Co., Cairns real estate update, Q3 2026) Low vacancy supports rents and makes tenanted property easier to value for investors.
Read more on selling an investment property in Cairns with Tony.
SMSF properties: when do you need a formal valuation?
Self-managed super fund trustees must value all fund assets at market value for the fund’s financial statements. The ATO says a qualified independent valuer is not required for that, but recommends one where the asset is a significant proportion of the fund’s value. (ATO, Valuation guidelines for self-managed super funds)
For real property, the ATO lists recent comparable sales and an independent appraisal from a real estate agent among the relevant evidence, and says a valuation should not rest on only one item of evidence. Ask your SMSF auditor or accountant what your fund needs.
A new restriction on SMSF borrowing for residential property applies from 10 August 2026; properties under about $750,000 may be most exposed. (The Buyers Co., Cairns real estate update, Q3 2026)
General information only, not financial or tax advice.
Last updated 3 November 2026
Free appraisal
Request a free appraisal from Tony Williamson
Include the current rent and lease end date in the notes, and Tony will factor them in.
More questions
Does an SMSF need a registered valuer every year?
Not always. The ATO requires SMSF assets to be valued at market value each year, but says a qualified independent valuer is not required for the financial statements. It recommends one where the property is a significant share of the fund. (ATO, Valuation guidelines for self-managed super funds)
Should I sell with the tenant in place?
If you expect investors to buy, a good tenant on a current lease often helps. See selling an investment property in Cairns.