QLD Buying Land and Building in Loganlea

Low quality / cheap builds. Talk to people who have worked for them and those that have bought their end product is your best answer.
You'll get your rents, but in 10 years time it won't be standing as good as a rock steddy older brick place which wasn't built on an extreme high volume cheap model.

 

156k +++ you need to look into all the extras such as fencing, driveway, landscaping curtains and blinds and other costs that will add up, think of clothes lines, letter boxes etc (I have clients had quotes for $450 for a clothes line and $250 for a letter box installed, not from Dixon but a handyman) all the extra's will add up. Why not avoid the hassle and buy an existing property under market value generate income from day one and equity on the way in...? Do that multiple times and your onto a winning strategy and will have way better land content.

 

with your standard resi buy and hold you have a different set of obstacles faced, eg being older properties means more headaches finding tenants, higher maintenace,
also with development you get instant equity (upon completion)
with your resi buy and hold , CG is usually slow and takes years

edit: im currently at a point where I have enough buy and holds

 

If you do a 4/2/2 in Spruce Street you'll be in that for close to 395k all up I think. How much equity do you think there is in that once finished?

 

obviously im not looking at a single buy and build scenario

id look at a 3 siter and with good purchasing, or a buy a resi keep existing, and build 1-2

if it was as simple as buying land and building, every jane and joe would be doing it....unfortunately

 

I am familiar with this area and there are some great advantages in buying some of the older larger block properties with a view to selling them on or developing the blocks. There is a premium on the development blocks, and the houses are variable in terms of condition. Close to the train is key. There is an aspirational plan from QR to move the station a little along the track but this is linked to the "triplication" of the train line. Given they can't get the current trains moving properly this is likely to be a way off. The express changed from servicing coopers plains station to altandi, but loganlea has always been the express train stop for the airtrain / gold coast express train. So if you love trains (like me) you should love the zone around loganlea train station. The M1 is a carpark, so either wait for driverless cars so u can sleep on the M1, or sleep your way to town on the express trains (or milk run).

 

Good to hear a feedback from a local on the ground.

Agreed on the movement in price differential between zoned and unzoned land in Loganlea

The Logan Planning Scheme was gazetted in May 2015. He is what I observed in the last 18 months of zoned versus unzoned property since it was adapted...

• Unzoned 265k to 300k, a 13% increase in last 18 mo
  
• Zoned 320k to 400k, a 25% increase in last 18 mo

Even land ( without an income dwelling) in a zoned precinct is selling $300k, equal to the price of a house+land in unzoned Loganlea.
30 Carnival St, Loganlea, Qld 4131 - Property Details

 

I am seriously concerned about people going into Logan and talking about units/TH/Villas....wow...do people understand that there is no money on these....

There are already problems in some inner areas of Brisbane and some of these are nice areas...but to talk about developing 20-30 unit blocks in Logan is hiding to nowhere.

If you must buy the walk-up in Brisbane with low strata fees in BCC say 3-10 klms of the city. A lot of these areas have nimby councils who won't allow massive high rises....just the boutique stuff. I some of these areas the houses are approaching $1m but 2brm units can be bought for 300-350k comfortable for a 6 pack.

If you do the maths...the land component would be worth about 70% of the unit value.

 

Logan development property for 300-400K for LMR with 5-6% yield...doesn't cost anything to hold. You don't have to develop now but an option to build later if Brisbane decides to boom whenever this may be... At least there is evidence in the Loganlea centre zoned property has outpaced growth to the regular non-zoned properties.

Say I purchased units in Moorooka or Annerley in 2014, basically it's gone sideways for the last 6 years, while house continues to gone up... Then there are new apartment which will be discounting that will compete with older walk up apartments

Moorooka Apartment price going sideways

Annerley Apartment price going nowhere.

 

Stats are one thing....but have you got on the ground in Annerley and Morooka?

One gets a different perspective ....especially the hipster gentrification around Annerley......reminds of me of Marrickville, Enmore, and Newtown 20 years ago....wish I would have bought a few units there...hindsight is a wonderful thing....

Logan is like Mt Druitt...the stigma still persists.....if it was near the Ocean it might be different...but it does not have these redeeming features...though I understand the Moreton Bay has these.

On another topic...it looks like places like Woy Woy, Barrack Heights, Watanobbi, Tenambit, Dapto...still have sometime to run....helps fund the luxury travel fund now that retirement is sorted...eh?

 

Hey @sash Hope you don't mind me asking you a question. Regarding your thoughts does the duel key logan fit into "don't go there" catogery. Was thinking of possibly developing one of these on a new 1 into 2 lot subdivision in Marsden. Would selling the block and moving on be a better move? Always good to get other opinions. Retire Rich has always been a wealth of knowledge and kind to me with guidance.

 

From my perspective it would be in don't go perspective...why...the dual key is CF perspective in most instances you are trading CF for CG. Similar case for GF also....

Lets say you picked up a block for 250k for a dual-key.

A 28sq would cost you about 290k turnkey.

So that would be about 550k in total.

You will probably get 700pw or a 6.6% return but very little CG.

Just about to take handover of H+l package complete for 301k rent is 370pw or 6.4% return. Conservative val is now 375k.

Hope this brings perspective....

 

nice to meet you Melbournian from Melbourne... I heard you are the development guru .....perhaps you can share few tips and what to avoid in development in Logan?

 

Maybe we refer to @YoungBull post before we have another crack on the numbers...

QLD - Logan Logan Logan

 

Nope I am no development guru. I started doing renos buying selling and did h&l, dev sites on and off.

Beats me for Logan - aren't u the local expert who did some sub divisions? No offence I didn't like the suburb at all and left it at there. It takes time to study an individual suburb

 

Well someone summoned you here..not me, so I thought we could learn/share a thing or 2..

No offence at all. You kept referring to Logan as a suburb..It shows how much you know about Logan. Logan City has over 60 suburbs with varying demographic..

 

Come on I think u know I don't invest there so no point studying planning or building regs.

Don't take it literally - If I went to city Manchester or Belgium I won't say I am studying the whole city. I do know it consists of many suburbs.

In btw was reading this post abt that review of that company that acts as a buyers agent. Does a bit of Buying in seq. Some of these guys got some pretty bad stuff to say abt ur Logan city or suburbs.the user sonyad. Fact or fiction? Or any commentary


http://forums.whirlpool.net.au/archive/2427434

 

Yeah...mate....too much money on those Melbourne devie stuff you are doing.....

 

Last 3 in Adelaide .Currently nothing in Logan or MB but 4 houses in BCC area. Otherwise a couple in NSW and a few too many in major centres in regional Qld, Rocky, Cairns etc.
Back to Logan, I saw this in the paper today:

Queensland’s next boom town | Perth Now

 

was it you that had the SL property and now sold?