QLD 4114 - LOGAN

Hi guys
me and the wife Are flying in next week Brisbane for some rnr and hope to explore opportunities for ip in Logan and surrounding areas

We have been pondering on this for a couple of years and have read comments both positive and negative

our plan is to scout the area and was looking for recommendations to hopefully meet up with a buyers agent or someone that can give us guidance to give us more insight

The amount of knowledge from this site is fantastic from novice investors to newbys like us
Thanks bigwil

 

Check out the suburbs with high proportions of oo like springwood regent park etc and compare them with what you get in the 4114 postcodes. Very different demand and different risk profiles!
Worth comparing the logan suburbs to Moreton bay
as well...imo better growth in clontarf and Margate due to proximity to water...can still buy for 420 - 500k not for much longer though...

 

Hi closet
Thanks for the insight mate and will explore all potential areas we are hoping to get more insight on ground level and visit some agents locally as well

 

Lots of new developments popping up in Beenleigh, it's a good sign for the area. Developers are snapping up sites quickly I've purchased 4 development sites in the last few months all sites have been multiple offers with lots of interest. I wonder when Loganlea will kick off...

 

Hopefully soon. We have been watching our IP there lose value for the past 3yrs.

 

No value in Logan....anyone looking to develop in Logan needs to be sent for psychiatric assessment.

 

Sash, Your way of commenting reminds me Kerry Packer is still alive....

 

Thanks will take that as a compliment

 

Another big project right in the heart of Logan.

40 million project to deliver 530 new jobs - Northern Star
www.northernstar.com.au › news › 40-million-project-to-deliver-530-ne...

A NATIONAL logistics operator has started work on a $40 million warehouse project in Logan's premier industrial precinct at Berrinba. McPhee Distribution Services' 4ha site off Bardon Rd will be developed over three stages with completion earmarked for June 2023.

 

https://m.realestate.com.au/sold/property-house-qld-logan+central-131689854

$255k

Someone picked up a bargain for brick, unless its got termites or similar

https://m.realestate.com.au/sold/property-house-qld-logan+central-132513762?cid=pdp:recent-sales

$242k

 

Speaking of bricks, you’d Have them in your head to buy Jacaranda road.

Definitely not cheap. In a busy market like we have right now, no demand for a terrible product. Cheap & value are 2 different things

 

Heather st property is cheap??

what was the reason vendor agreed to take almost 80k? A month ago it was advertised to 320k.

 

I have some on Jacaranda Avenue and love it

give them to me, for the right price i take them, I like jacaranda avenue, sure its a main road, but its central and land value has and will continue to increase, also zoning is more like to change than off the main road

 

I’ll be the first one to admit I’ve shouted down Logan as an investment for years now, and have not even considered it due to believing in buying for capital growth, not for yield

HOWEVER...

Given most lenders have passed the rate cut today, and considering we may be in for another next month. We have rates edging 2.5% flat for OO/P&I

Now after a quick search (take it easy on me I don’t know the local area for a bar of soap)

Some rough calcs on renovating something low 2s, and renting for low 3s looks like these things cover themselves and would pay itself off in less than 22yrs. Or funnel the difference into an offset (nearly $160 a week, nothing to sneeze at if you have 3 of them giving you $25k a year)

8 Macbeth Street, Kingston, Qld 4114
8 Macbeth Street, Kingston, Qld 4114


It’s sparked curiosity and something I plan to look into..

 

That’s a good overview, however I have a few “food for thoughts”

buying in lower social economic areas such as Kingston you have to factor in tenant issues that occur more often in These demographics, this will result in your CF Being interrupted. its even worth thinking about how many insurance claims you may make through the duration due to the tenant type, I know these might sound “negative” but I wouldn’t want that “grey cloud” over my investment, I would much rather focus on a quality location and securing a quality tenant and end up with a lot less headaches/risks over a 25 year period worst case scenario.

this is just my view. Goodluck

 

That’s been absolutely my view so far mate and still is to be honest. Any sort of cashflow can quickly be eroded, especially if only $40 a week.

However when talking about $150+ Pw one would be silly not to look at it and see if there’s some solid pockets around, I don’t know the demographics or workforce but I do wonder if a renovation, would help secure a better tenant.
Hopefully @TMNT or @My House QLD has some more insight?

 

I'm holding a fair few properties in the lower socioeconomic areas in Logan, I started buying back in 2015 and I have not had any issues with tenants. It is critical that you have a good property manager otherwise there can be issues. I see lots of interstate investors buy properties sight unseen in poor condition then have headaches when they cant attract a good tenant. I've purchased lots of properties for investors but we usually give them a makeover before renting them out, we go through the property and look at any issues before putting the property to rent, you'll get a better yield and most likely add value to the property. Paint, carpet, blinds/curtains and other basic maintenance is not hard and doesn't take much time if you have a good local contact to project manage for you.

Cashflow really depends on your strategy, $40 a week cashflow positive is not going to make you rich but it will help with servicing if you intend to build a large portfolio. $150 a week positive going into offset over time can be a pretty powerful strategy especially if you have a few properties generating this.

Understanding the best type of property along with the good and bad locations are critical for a good investment in Logan!

 

To be honest, this is quite a naive statement.

Not Logan, but most of my portfolio has been in lower socio areas, for this reason. As a newbie, they were the only properties we could afford, so that's what we bought. As we became more experienced, there was no need to change from something that was working very well.

THIS!!!!!!

Get a good property manager & keep your property well maintained.

In the early days I was happy to get $20pw cf+ from each property. That's $20 I didn't have to go out & get my hands dirty for. An extra $20 off the mortgage. It doesn't sound much, but if you've got 5 of them, that's $100, and if you've got 10 of them, that's $200.

This adds up over time, it helps with serviceability, it helps with debt recycling. AND the best part of it all, is that as the City, in your case Brisbane (Mine was predominantly Sydney), gets CG, so too will Logan. So, CG AND cashflow, so long as you time the purchases well.

Then, another bonus is when it comes time to sell. You can sell one a year to reduce CGT. You can't take your $1m in the City and divide it into quarters to sell it, can you? So you get hit with a very large tax bill when you sell.

 

Each to their own I’m just a big picture guy, wanting to minimise risk/headaches and making $20 a week to me isn’t worth the headache! Not to mention having 5 of them, because you’re multiplying the headaches! But hey if it’s your gig go for gold.

 

I'm a big picture girl. Retired living off property.

The big picture is that as time goes by that $20, turns into $30, turns into $50 etc. You are not seeing the big picture.