QLD 4114 - LOGAN

Well...if it was ex housing commission..I think it would be a struggle...

 

my friend asked me the other day,
they bought a 3/1/1 in 4114 for $250k about 2 years ago,

do you think my prop will be worth $500k in 10 years?

doubling in 10 years would represent "average" growth

I am skeptical

 

15 Dale Street, Kingston, Qld 4114

Sold July 2019 for 248k
Sold September 2008 for 265k

https://www.realestate.com.au/prope...ep-pdp|sold-pdp:property-history-cta#timeline

Sold July 2019 for 267.5k
Sold February 2009 for 285k

https://www.realestate.com.au/prope...ep-pdp|sold-pdp:property-history-cta#timeline

Sold July 2019 for 236k
Sold January 2016 for 285k

I am skeptical as well.

 

I still has no idea to why some buyer agent would recommend buying in Logan.

 

My insurances on my property have gone up 60% in marsden and crestmead. Must of been a crap year in the area as I have not madd any claims on my properties.

 

Good long term prospects. Once Brisbane and the Gold Coast merge, it will be well positioned.

 

Those sort of figures are exactly the reason why places like logan , goodna and Ipswich make sense now . Poor growth over last ten years .

Cliff

 

This is because too many people following certain young people who did a great publicity exercise in the media and bought a few there. Too many vested interests and the only interests is to feather their own nests. You can't blame the BAs if some stupid people are too lazy to due their own due diligence. It is hilarious...to watch indeed....though I would question the ethics of some of these BAs.

Yep....let alone the rate on those areas....with just expenses without Interest you would be paying at least 7k a Logan property ..if one invested in say the West of Melbourne or even Norlane it would have been about 5.5k.....and that is assuming there are no tenant issues.

 

What is the historical value of Logan to Brisbane?

Apart from being affordable what are the growth drivers?

 

Although it appears as cash flow +ve on paper, quality of tenant, maintenance "wear & tear", insurance etc will make it a non viable investment option. May be some BAs can enlighten me?

 

According to my tax return, mine was $2111 cashflow positive before depreciation and tax. Though this is at an LVR of less than 80% (on purchase price).

 

True CF positive based on all costs....not on a LVR less than 80%. In your case you might just be actually negatively geared.

 

When you factor in the losses and land tax over the years...you might find if you had invested in shares you would have done better....Logan...Ipswich....Goodna...are costly to hold due to maintenance. Don't get me wrong...I have had a hard look at my portfolio also...even though I made a 300% plus profit one of mine in a lower middle class area...I have decided to move it on....

 

I'm just sharing my experience without agenda, do with it what you will.

 

If bought well the better oo areas in logan will continue to tick along with slow steady growth so can certainly play a good role if no holding costs and attractive to families.

 

Affordability IS the big ( and probably only ) one . But the same applies to Mt Druitt and other similar places . There is always going to be somewhere in a city that is the cheapest and down the bottom of the heap , doesn't mean that they can't make a good investment .

Unlike other cheaper high return places , it is located in a major capital city .

From my view point , there are do growth drivers unique to Logan . It just gets dragged along with the rest ( eventually ) .

Because there are no drivers , when the market is crap , it tends to drop more , so percentage wise you can have a bigger % growth there compared to other areas .

Cliff

 

I own in Crestmead and TBH if I didn't have stable tenants right now (touch wood) I'd be ******** myself. The property has only lost value and potential rent in the 2 years that I've owned it. Sure longterm potential and it's a ride up and down market, which is understood, but it's not is not a good time to be looking for tenants or to be selling or even refinancing in the area right now.

 

Not going to happen for the next 50 years.
Have Liverpool and Parramatta merge yet?
Have Penrith and Parramatta merge yet?

PS: I don't have problem with Logan. I used to travel pass it all the time. Even buying lunch around the area.

Good long term prospects - That I have to investigate and see why. If it was just about being cheap entry cost and holding cost. I am sure there are other location?

 

I reckon there's a good chance to see movement within 20 years. Especially if we keep immigration numbers up, but implement rules that mean not all of the people come to Sydney and Melbourne.

As for Parramatta, there's a sh*tload of work going on here and for better or worse, Parra is definitely sprawling and spreading as we speak. You certainly can't find a place like Logan between here and Liverpool anymore (though there's still 2770 between here and Penrith).

 

I've been in Slacks Creek since 2015.
Rent has risen about 8% in that time Started off at $340 pw and I'm now getting $365pw.
It has had more work done to it then my newish house in VIC.
Stable tenants who have been there since day 1.

There is a 2 car shed in the backyard so tenants love it for the car collection.

Kitchen and Bathroom might need some work in the coming years. Overall, I'm happy with it. You can't expect Sydney like capital growth everytime.