QLD 3 years and 3 IPs in Logan. What next?

Over the last 3 years I have accumulated 3 properties in Logan:

IP1 Crestmead QLD 4132:

16 yo lowset brick 4/2/2 on 600sqm in a leafy cul-de-sac on the edge of Crestmead and Park Ridge. Bought at auction for $345k and currently rented for $390 pw. Estimated value $360k

IP2 Logan Central QLD 4114:

Old 3/1/1 highset just behind the shops in Logan Central also on 600sqm. Bought at auction for $265k and rented for $320 pw. Estimated value $290k

IP3 Crestmead QLD 4132:

Another 16yo 4/2/2 in Crestmead but slightly smaller block size of 493sqm. Bought private treaty for $325k and rented for $365 pw. Estimated value $340k

I haven't technically made money on these properties (after selling costs) however I have no regrets as it allowed me the opportunity to meet my mentor and start a career in mortgage broking.

Long term I still believe Logan will do very well.

For the next purchase I'm leaning towards an old walk up unit in a desirable Gold Coast location. This would still have strong cashflow however should have more potential for growth in both rent and value.

How does propertychat feel about old units in Coolangatta / Southport / Labrador?

 

I'm getting the feeling that you are a bit over-weight in property in SE Qld. Maybe spread the love around some other states before you run into some land tax issues? (not to mention having some better balance and taking advantage of cycles in other areas).

 

Couldn't agreee anymore!!!..

 

Good job but concentrated in one area/one state..

Time to branch out!!

 

My own take, I don't think 3 properties in one state is 'too much', but I do believe all three in Logan isn't the best plan/strategy. Especially if you're trying to grow a base. Anyway that's my opinion.

If you can afford it, I'd be looking at middle ring Brissy. Add value property. Good OO areas.

 

True that...

Hence, I said to branch out to new area/state..

I myself hold few in Melbourne/QLD bought over last 10years!!..

Cheers.

 

Nice, should have done quite well

 

@Propertunity I'm thinking it'd make sense to buy in a unit trust as will fall under $350k land tax threshold

@Leo2413 Am priced out of middle ring houses and thinking units don't have the best reputation in Brissie

 

Whats your reasoning behind this?

 

If you can afford to..go to Runcon 500k ish

 

@Terry_w I was under the impression that land tax would not be applicable if unit holder owns less than $350k worth of land in QLD

 

Im guessing serviceability is an issue (or you want to take a minimum impact)

Check the development potential of the units you are after
While there isnt an immediate demand, having the potential may get you offers in the future.

I know of a few apartments a couple of yrs ago in surfers paradise that had decent yield and then later sold to developers (2 storey low rise)

 

True to that bud.. But always room to improve!!! ..

 

Thats true, but is that your only aim.

 

Well done, John! Taking action is more important than procrastinating with thoughts such as property market is gonna crash, Brisbane is just a country town, etc.

Anyway, I’ve found another Crestmead lover!

 

Next would be to follow what your founder has done and keep buying more in Logan

But seriously though, what's your budget and what do you want this property to do in your portfolio? Sounds like you're leaning more towards a CG player rather than a cashflow player here? Extremely rare you'll be able to get both from day 1.

Cheers,
David

 

I think older walks up in Brissie in trendy suburbs will probably out perform houses in Brisbane.

May I say why have chosen Logan? What was the rational? Was it because your ead a few stories of lot of people buying there?

I have raised this before if you would have bought 15-25 klms to the North of Brissie or 15-20 klms out to the South you would have made money.

I think the ones you bought are in lower socio Logan...got for CF..but harder to make money.Don't get me wrong you will make money..but other areas would have been better options.

 

Well done mate. At least you have the drive and balls to dive in and actually invest. Too many talkers/procrastinators around saying they are going to invest here and there and 3 yrs down the track they havent done a single thing.

You'll be fine with your investments. I bought a house in Logan(Crestmead actually) for $280k about 14 months ago now. My next door neighbor just sold for $345k it settles next week. I was thinking of buying it but have no finance. I would love to have 1300 sqm of land there adjacent to each other. Never ever had a single problem with tenants there either. Pay in advance and always on time.

Yields are very strong so you wont be putting in much if any to hold these properties + benefit from depreciation to offset your tax. You will 100% make money either way so good on you. In today's environment yield and cash flow play a far more critical role in an investors strategy if you want to continue to grow your portfolio. Its not as easy as before.

Now to move to the northside of Brissy. That place is heating up big time. Bracken Ridge, Bald Hills, Petrie all those places are very strong at the moment.

 

@David Shih I only think Logan is only a cashflow play if you have a dual occ or gf... my properties do have 6-7% gross yield, but with those numbers you're just breaking even (depending on LVR %)

The aim is to buy cashflow neutral with the expectation that rents will increase and start putting money in your pocket.

I'm thinking the chances of rent increase is higher for units in more desirable areas, compared to big blocks in low socio suburbs