QLD 4114 - LOGAN

Sorry to create another Logan thread but the ones that are active in recent times do not really go into the 4114 suburbs (Woodridge/Kingston/Logan Central)

A couple of years ago there was big hype in thin area (from memory around 5 years ago from the somersoft forum which continued into pc). Low purchase price (200k-350k depending on timing/house condition/dual occupancy - non complying upstairs/downstairs), with yields between 6-8%.

How's everyone feeling about their investment in the area?
Has anyone tried offloading there properties and if so how do you feel about the market?
Have rentals kept up or is vacancy/prices going down?

Not too interested in hearing about people that have had appraisals and vals come in higher (good if you have - but to me it doesnt really say anything about the market until it sells.

In relation to my property i believe its a dud. I believe the value is prob the same as it was 4 years ago except the reno i put in is a loss (20k reno). Rental has dropped from around 7% - 6 % but as you know logan has high costs involved with around net rental around 2% less than gross. Also noticed when property is vacated its unrented for around a month or 2.

Also looking at sold prices on realestate.com.au a lot of property is quiet cheap compared to 2014/2015 when 250k was the min to now where even 200 is possible (mid 200s for something decent n rent). Also a lot seem to be on the market for quiet a while (months if not nearly a year)

 

100% agree I don’t think that part of Logan also Beenleigh, Eagleby etc have done anything at all since last boom whenever it was in 2000’s. I say that because I bought in the area in 2005 when I was 20 and it hasn’t done much since then. If I bought a few years earlier I would have been set. Properties that attract OO in the area have done ok but investment properties seem flat. IMO building at a yarrabilba, park ridge, Logan reserve have kept our prices low as demand isn’t there to push up prices because there is so much supply. I kept trying to think that because the yarrabilba, Logan reserve and park ridge are a fair distance from M1 they wouldn’t be competing for same buyers but ive come to the conclusion that people are happy to travel up to an hour (30 mins each way) to go to something newer. My Val’s have gone backwards since 2012. Speaking to valuer that does a lot in the area says that nothing has happened and new stock is taking a massive discount on resale. I still think it’s a great location to M1 and for work it gets you to Ipswich, Gold Coast and Brisbane all the main hubs in 30-40 mins. I don’t think people outside of Brisbane understand the value of having access to these employment hubs.

 

The question to ask yourself when buying an investment is what are the drivers that are going to push it up.

Logan area was super popular due to its "positive gearing" aspects. Beyond that, what else was there? Its great that it was positively geared from day 1 (well at least that's how it was marketed). But if the majority of tenants in the area are happy to pay more in rent then it costs to purchase and pay down a mortgage, where is the actual driver for the capital growth?

People who got in earlier picked it up for less, then the investors buying into the hype figured it was a good idea and with all the equity produced from their properties in Sydney / Melbourne they started buying up which pushed up the prices. You got to ask yourself, is that really sustainable?

 

Cut your losses and get rid of it. People in Brisbane want to be closish to the CBD. Many people compare Logan to the Druitt but Logan is not comparable to Mount Druitt as Sydney is a different kettle of fish. Sell and buy within 10-12km of the CBD if you want good growth over the next 5-10 years.

 

Would this still be your advice if the cash flow from the Logan properties are offsetting a negative cashflow on other properties? Surely Logan will see growth over the next ten years if Bris and GC populations grow as predicted? Most parts are actually not a bad place to live.

 

I've seen steady growth for properties in the Golden Triangle over the last half decade(i.e. Kingston, Woodridge, Slacks Creek, Logan Central)? In the last year or so, a severely run down 3/1/1 in Logan Central will still pull around $250,000 and something reasonably nice is a $300,000+ proposition.

I do otherwise agree with your sentiments though- they can be VERY hard work to manage and the area is gentrifying a bit slowly for my liking....

Most of Logan is a low-risk high-yield average-growth scenario. Of course there's some exceptions (e.g. East side is expensive, but great growth) but that's largely the attraction. Our beloved Golden Triangle is really a case where you're trading an improved location (closer to the city than the rest of Logan below the motorway) for a poorer demographic (more difficult management, for the time being).
All the areas surrounding us (Stretton, Sunnybank, Underwood, Kuraby, Runcorn, Eight Mile Plains, Rochedale, Rochedale South, Springwood, Daisy Hill, Shailer Park) are doing very well. Of course none of them have the stigma of 4114, but experience has showed us time and time again that this should eventually result in an increase in values- and HOPEFULLY some investment in the area.

 

You’re call everyone’s situation is different. If I could have my time over I’d not bother with any regional areas and stick to major capital cities close to the CBD.

 

A lot of planning is going into redeveloping the CBD of Logan Central
Logan Central - Logan City Council

Most recently in Feb 2019 they've released the Logan Central Implementation Plan.
https://www.logan.qld.gov.au/__data...entral-Implementation-Plan_Mar2019_150dpi.pdf

Previous to that was the Logan Central Summit held in May 2018
Logan Central Summit - Logan City Council



And before that the Logan Central Masterplan released in 2014
https://www.logan.qld.gov.au/__data/assets/pdf_file/0005/316652/Logan-Central-Master-Plan-261114.pdf

 

Not everyone wants to be close to the CBD. In Brisbane and Sydney.

And for those who do want to be close to the CBD, doesn't mean they can afford it. The thought that properties close to the city have better growth than properties further from the city over a period of time is rubbish.

 

You keep telling yourself that

 

That old chestnut - LSE Logan...ie Logan Central doesn't equal the better parts of logan favoured by FHB....they are humming along quite nicely and are about to get a quick injection when the new scheme kicks in...

 

Wow looks like it up from $375k to $410k. Could almost pay your entry and exit costs with that profit.

 

My partner owns in this area and I'd agree that demand for rentals remains strong - he got 8 applicants presented to him by the PM after only one open - but very few are buying in the area - he had the house on the market for 6 months late 2018/early 2019 and got a couple of bites that fell through, but nothing that held up. And he was asking $50K lower than his purchase price 3 years ago! (Purchased solid brick 3 bed - plus two marginally below legal ceiling height downstairs - for $360K, tried to sell at $310K.)

I know property's a longer-term investment and you wouldn't necessarily expect a profit in 3 years, but not being able to sell at 15% below purchase price is a pretty big hit. (It was bought for him to live in when his personal circumstances were totally different. Now it's just an albatross.)

 

Lower SES areas are duds. Sometimes great on paper with yield and desktop Vals but otherwise avoid at all costs. Buyer beware!

 

Wow the BS perpetuated about Logan....quite a few on this site have jumped in and no profit sight. Too many followers and very few people with independent thought processes.

The only people get rich are Buyers agents putting people in these suburbs.....seriously?

The other issue is rents are dropping in lower socio Logan like a lead balloon....whereas in the better areas there is some growth.

 

100% correct....see my post earlier...a bunch of rats following the pied pipers...

 

With some properties it is best to cut your losses. I can't see Logan doing well in the long term, I have been watching Logan for 30 years.

 

here are the last 10 sales of free standing houses in the 4114 postcode according re.com that have prices revealed

9 Birch Street, Kingston, Qld 4114
1 Acorn Court, Kingston, Qld 4114
7 Oates Avenue, Woodridge, Qld 4114
20 Ash Avenue, Woodridge, Qld 4114
130 Juers Street, Kingston, Qld 4114
25 Douglas Street, Woodridge, Qld 4114
5 Sycamore Court, Logan Central, Qld 4114
23 Kelvin Street, Woodridge, Qld 4114
29 Alexander Street, Woodridge, Qld 4114

 

In my experience, the vast majority of my clients are very happy with the Logan purchases both in the short and long term.

The people who are posting unhappily here either have unrealistic expectations of the investment in this area, or have bought a dud.