QLD 4114 - LOGAN

They have started construction.

 

I grew up around this suburb and know it's probably not the best spot to invest. You will get awesome yields but no growth. First Home Buyers would rather build new with the available grants and land prices for $200k per block. I would say cut your loses.

 

What did growth do from 2003 to 2008.......?

 

Anyone have any insight into the market nearly 2 years. Im suprised how long this threads been going

Eg Covid impact

@My House QLD

On another note while its already been mentioned with interest rates being record low is there any investment creep in this part of the world.
While rents seem high I pretty much use $100pw as a base for expenses (high council rates, insurance, PM fees). But there are still some with a yield of 5% after these expenses and with interest rates starting around 2.5% I guess brings an opportunity.

I always thought the location factor would be the reason for capital growth (M1 access and near Brisbane but also easily accessible to GC)

 

It was quiet with all the talk of no evictions but that quickly went away. There are lots of buyers on the ground and interstate investors placing offers sight unseen or via BA's. With most people thinking interest rates will stay low for some time holding costs are virtually zero if you pick up the right property in Logan or Ipswich. My favourite is to purchase UMV then do a basic makeover then extract equity and refinance and buy again. The cashflow won't initially make you rich but it will certainly help build a sizeable portfolio.

Here's a house I bought in December, I paid 235k. Did a basic makeover and decided to sell it (sold for 331k). The new owner rented it for $450 a week giving him a yield of 7% on a renovated house. If I had of held it I would have had a gross yield of 9% based on my costs. Once places like Logan start to move yields will most likely drop (I can't see rents increasing too much in the next few years) now is the time to buy at these cheap prices.

 

Here's another one I purchased late 2019 for 202k. Its only 5 mins drive to the Beenleigh train station or 30 mins drive to the Gold Coast or Brisbane CBD. I did a basic makeover and it rented for $370 a week giving me a 9% rental yield. I did a refinance on it and extracted $84,000 in equity which I used to buy more property. I can't imagine these deals will be around much longer with the level of interest at the moment.

 

Cranes in Logan Central too. This is the commercial strip on the north side of Wembley road.

 

Nice flip Richard - what was the reno cost? Was it trade work or did you do some yourself?
Well done - congrats.

 

I removed wall paper and painted the house, had the floors polished and installed new blinds and some light fittings, I resurfaced the kitchen and existing bathroom myself (painted) and helped my builder install a new bathroom into a store room which was beside the existing bathroom making it an easy conversion. I spent about 25k but I sold a disabled lift that came with the house (30k new install cost) so my net costs were about 20k. Most of the work I did myself in my spare time.

I have another flip I've just accepted an offer on in Logan, will post it up once its sold.

 

The first unit complex under construction on Station Road Loganlea after the rezoning.

 

The Logan hospital expansion well under way.

 

I thought there was a 5% drop in prices in logan - COVID related. Is that still the case? Or has it recovered. There was one property sold VERY cheap which seems to have created a 'blip' in the 4131 postcode

 

You can check the monthly price change on Realeaste.com. The market held pretty well despite covid. There was a small dip in the initial lockdown but the market recovered pretty quickly.

South East Queensland market was not affect much by Covid. A couple of reasons I can think of, 1. it is affordable and there is much less mortgage stress compared to Sydney and Melbourne. 2. population growth is more reliant on interstate migration than international migration. 3. large infrastructure projects are creating more jobs.

 

Logan is

What people forget is that the long term capex costs of managing a propetty are much higher in low SES as a % of the rental income/potential cap gain...

a leaky roof will take an entire years rent out and you won’t have the commensurate capital growth to compensate

Low SES areas are poor investments. These areas were peddled by buyers agents in the past. they might make sense if you are a tradie and want a small project for reno & flip - even then I think you could do better

In logan, there is no FOMO or aspirational buyer pressure - the capital growth in resi is driven by the incoming marginal purchaser paying increasing prices to secure a lifestyle.

 

If you buy in an area surrounded by a sea of land with high proportions of investors sure ...but a decent oo area on the outskirts with scarcity will still get fomo hence the need to buy well....yes logan and every capital city has these as well...logan is definitely not one suburb with one demographic!!!

 

The other thing is that a low cost of entry is a realistic reason to consider a suburb. I remember when Jindalee cost less than $100K and Fig Tree Pocket was $200K. They might be more expensive now, but there was a time....... So the idea that ONLY richy rich suburbs are good investments would lack common sense, and wouldn't be very diverse. Maybe they are overpriced, or fully priced?

So closet is right, a highly variable large council area will hvae some good spots (transport etc) and some not so good. Ugly duckling suburbs are a thing, aren't they?

 

More construction happening in Eagleby.

 

Logan 8.1% !

 

Is this a good buy?

8 Elkhorn Street, Woodridge, Qld 4114
https://www.realestate.com.au/property-house-qld-woodridge-134632350