QLD 4114 - LOGAN

Discussion in 'Where to Buy' started by gach2, 20th Nov, 2018.

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  1. David Shih

    David Shih Mortgage Broker Business Member

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    Don't we all love talking about 4114? ;)

    I think 4114 has it's place for investors and it just comes down to expectations. For those who are considering, you can find deals with great yield return in this area however keeping in mind the risk associated:
    1. It probably will take a while to see some decent CG & gentrification, hence investor expectation may need to adjust accordingly
    2. While yield is great on paper need to factor in extra tenant rent arrears & vacancies. I would probably use 44 weeks rental income (rather than 48 or 52 weeks) to be extra conservative in calculating the forecast cashflow return
    3. Don't expect Average Joe type of tenants. You'll be looking at mostly single parent families that's on Centrelink payment (they could delay rent payment and causing arrears) or big islander families (who will cause more wear & tear in general).

    Just my observation and thoughts from someone who has one IP in 4114 and another that's very close to it.

    Cheers,
    David
     
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  2. YoungBull

    YoungBull Well-Known Member

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    Great discussion and thanks @David Shih for your recent Podcast on Logan with insight from @Tom Rivera which was very informative and enjoyable to listen to. Maybe you could post the link to it here David so the PCers can have a listen
     
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  3. The Gambler

    The Gambler Well-Known Member

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    I agree. And that's why I included that as a kind of disclaimer. But knowing the place so well, I just couldn't, even if I wanted to.
    But I got absolutely no problems with missing out on the area.
     
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  4. jazzsidana

    jazzsidana Well-Known Member

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    Good day @YoungBull, thanks for your feedback on the episode mate. Love that little community of ours is enjoying it!

    Cheers,
     
    Last edited by a moderator: 13th Jun, 2019
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  5. sash

    sash Well-Known Member

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    Agree...so the question is why Logan?

    Most people have not made money there despite 5 plus years passing in some cases? What is the opportunity cost of this?
     
  6. dabbler

    dabbler Well-Known Member

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    Q may end up being, why did many of us bother with SE QLD at all....

    Many spots in NSW and Vic have smashed QLD, although spots have gone up in SE QLD, you can't help but wonder how much better the money would have done elsewhere, councils are too greedy as well and water too expensive....
     
  7. fat cactus

    fat cactus Well-Known Member

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    If Brisbane moves up, how will this affect Logan?
     
  8. Rich2011

    Rich2011 Well-Known Member

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    Hard to imagine Brisbane moving and Logan not moving. Considering the deals available at the moment it's also hard to imagine people not making good gains over the long term IF they buy the correct property well.

    What's not to like?
    • High yields/cashflow
    • Low price point
    • Ability to buy under market value if you know what you're doing
    • Great opportunities to refinance/cash out and buy again
    It's a no brainer for me however you have to know what to buy.
     
    Last edited: 29th May, 2019
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  9. Simon L

    Simon L Well-Known Member

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    As many of you will know, I own quite a few properties in the Logan area myself and have bought plenty for clients also.

    4114 is a postcode I actually like to avoid and actively tell clients to do so as well – UNLESS they are experienced investors with a solid reno/PM team on the ground already who are after a very specific strategy.

    There are plenty of other family friendly, suburban areas in the Logan area that already have, and will eventually have more owner occupier appeal without as much gentrification as 4114 needs.

    For the more experienced investors, with an already solid team behind them especially property management + tradies, then there is certainly money to be make in Woodridge, Kingston, Logan Central, Slacks Creek. It will always come down to the purchase price in this area.

    An example of a property I bought last month for a client in Woodridge is;

    Older house on approx. 600sqm block, no renovation needed, 1 street away from train station for $221,000 – just a smidge over council land values. You could literally sell this house the day after settlement and make a quick buck after buy and sell costs

    As always in these areas, the key is to buy wayyyy below market value via distressed sellers so you make money on the way in, minimize your risk and increase cashflow.
     
  10. Cate Bell

    Cate Bell Well-Known Member

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    It sounds like you are very clear with your clients, and I believe that you are doing the right thing by your clients by steering them away from 4114 unless they have a specific strategy. I still don't consider that Woodridge purchase a good buy. I have a house under contract at Thorneside for approx. $90K more, ($38K less than council land value), I will do an approx. $30K reno, and it will be worth in the mid $500Ks. Thorneside has done much better than Woodridge. I only see buyers agents and some intestate investors talking up Logan, but it is good to hear that you are very clear- don't see that often.
     
  11. sash

    sash Well-Known Member

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    add to that most of Beenleigh, Eagleby and surrrounds

    Crestmead, Marsden...etc.

    The question remains...people have been buying in Logan and surrounds for over 3 years.....would it been better to buy on places like Melbourne, Geelong, Tassie?

    I left Sydney out...Sydney looks like it peaked in late 2015 to early 2016...so buying 3 years ago would have most probably left you in a similar state.

    The question Simon is....why Logan...none of the local *****s in Brissie like it...but the North, Cleveland, and inner Brissie they seem to be okay. Me thinks too many leemings out there....not directed at you...as buyer has some responsibility. To many yoing guys posting up in mags all show no money...;)

     
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  12. YoungBull

    YoungBull Well-Known Member

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    I haven’t used a buyers agent but could highly recommend in @Simon L expertise in the Logan area. Yes there will be doubters and yes it’s not for the faint hearted but it can be a decent investment if done right. I know of many that have done particularly well in Logan. I have personally made $80K out of a subdivision project (through good initial purchase) a couple of years ago and on selling that I will be using to renovate my PPOR in Sydney. Yes I could’ve made more in Hobart or Geelong and possibly more using a buyers agent to steer me into these areas or a BA on the ground in Logan but I don’t regret my decision. I purchased last year two blocks side by side on a flat corner block in Beenleigh with future development potential. (Yes Sash I’ll have to wait!) I have offset that purchase with more of a capital growth purchase north of Brisbane’s in a more owner occ suburb with great upside in Arana Hills again that has development potential and Reno for a capital uplift. Every purchase or area has a different purpose to that individual and there individual goals and risk factor. Different horses for different courses....
     
    Last edited: 29th May, 2019
  13. sash

    sash Well-Known Member

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    Agree each to their own...but again...why Logan?

    The lack of strategy is astounding....everyone seems to be developing...in my opinion the best deals are simple ..quality properties...
     
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  14. Danny370z

    Danny370z Well-Known Member

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    Are you sure you are not land banking half of Logan????....come on sash ;)
     
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  15. sash

    sash Well-Known Member

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    Yep...plan to make it nuclear waster disposal...
     
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  16. Tom Rivera

    Tom Rivera Property Manager Business Member

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    If this is the house I think you're talking about, I'll also point out it rented to 10/10 tenants from the first viewing at a 6.12% yield. Fantastic house!
     
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  17. JTR

    JTR Well-Known Member

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  18. sash

    sash Well-Known Member

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  19. TMNT

    TMNT Well-Known Member

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  20. Jana

    Jana Well-Known Member

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    After complete Reno what is the sale price in your mind? I am not familiar with this area, but if they can sell over 350k with full turn key they can make some.

    Agree they should have bought way higher than the instinct value though.
     

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