QLD Cut losses and sell logan Property ??

Share please

 

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I think after seeing the gains in Broady and not in Waterford West got me thinking...
But I will hold just will need to be longer. The Equity in Broady will propbably be there soon enough for me to use anyway.


Yes he was really good, put up a brand new color bond fence for me for $1000, much appreciated.I've had a bit on lately but now im keen to dive into a H&L and start doind some research and sniffing around

 

Yeah he is good value (that's the thing as well - without local knowledge of trades and how to get things done - it is hard to do stuff interstate) as many ppl have discussed. I think post apra - with tightening on borrowings, the concept of getting so many IPs will be harder just on equity alone. But again each has diff circumstances.

All the best in your investing

 

Cut future losses and sell the Broadmeadows property !!!

From this post Broadmeadows Property..
"...its a friend of a friend. Yes The are looking for a quick sale, due to financial pressure. What price would you say would be s good buy for that mate ?"

It appears from above comment, some good quick decision were made based the private sale due to personal circumstances. So you typical average Joe would not get such deal..so well done on your deal

Your Broadmeadows purchase was 280k, while the suburb median was 400k. you performed some reno which is now 350k. The suburb house median grew 16% in the last 12months. It is part of Melb boom cycle. so where to from here is everyone's best guess, but HTW cycle has put both Mel and Syd on the same horizon. Now that your property is renoed and is still 50K below suburb's median...you would need to ask will you attract future tenants that is below suburb 's median

You mentioned crime.... most of here would think it's reasonable to compare Broadmeadows to Kingston and Woodridge QLD, but definitely not Waterford West/Crestmead as they're better suburbs. It appears from your OP I don't think you know Logan very well before you purchased in.

 

Well it should have been around 300-310K to be honest. 275K is geelong type prices. Still 310 to 350K is still 40K in 3 months which is much better investment then where he bought in QLD. Secondly it is only a 370sqm block not a full sized block like 550sqm to 700sqm so it is priced correctly and is not below the median. you need to compare apples with apples. there are also many other factors like zoning, distance to transportation. LIke the St Albans example on Alfrieda st - sales of 1.81m and another of 700K - what is the median? I agree with broadmeadows - tenant issues are something to consider. Again who knows what background the OP has maybe he has strong networks in the Lebanese Turkish communities (which in that case would be no issue).

HTW cycles are useful for overall indicators. There were suburbs in 2015,2016,2017 in melbourne that didn't evenmove. if you throw the auction results below, the same could be said that demand is weak in states below 50%. Logically if every 2nd auction is being passed in - would it not be easier to negotiate a price below asking for properties being passed in? But there are markets within markets in NSW, QLD, logan, VIC and some will do better than most in every location. Nobody is asking to buy in Chatswood, or Balwyn or Sunnybank or Toorak or Mosman or the likes - there are opportunities if you put your time to research

@Brett1709 - hold on to both (and u will see which in next year or so peforms better) LOL - thread carefully and not be influenced too greatly as some have vested interests in some locations and will spend time digging up old posts to prove an unnecessary point.

 

If your serviceability is hurt then better wait for a few more months and save more deposit. It is better than swapping assets.

Remember a slow growing asset is still an asset.

 

Even better, if you can hold both and go again in western Melb all the better. Abit of DD and you should be able to do a H&L that'll give you at least a 20% uplift on completion. Hardest part is sourcing the land.

Looks like the Broady purchase turned good buy.. well done!!

 

GO BROADY!!

 

Thanks mate, yes the plan is to nuckle down and and source a H&L in western Suburbs of Melbs. There is plenty of useful info on here about H&L. Just need to find something suitable.
do you know of any new estates that are coming up or that I should look at.
also what size block would you say would be preferable to uplift profit on completion and to not over capitalise- Looking to build either 3x2x2 or 4x2x2 ?

 

From someone who has lived in Brisbane most of their life, in my opinion it would be a tough gig running a rental in the Logan area. The location is pretty good but it carries a bad stigma with the locals and the local councils need to do a lot of work to clean the area up. It would need to break away from that image before a large growth increase is applicable. Another problem we are starting to face here is that there is an over supply of town houses and apartments, which is making rents and values drop in some areas.

 

It's a tough gig at the moment with so many estates having land releases sold out well into 2018, and no shortage of buyers waiting for more land to be released..
But for the best value/yield look at a 260-300sqm block that's fit a 3/2/2. Still plenty of opportunities to pick up a 20% uplift on completion if you buy right.
ATM there seems to be good value in the smaller estates adjoining the 'big named' ones. Look at Wyndham Vale and Werribee.

 

Actually Western Melbourne has another 1-2 years for solid growth...places like Hoppers, Werribee, Melton, Wyndham Vale, Tarneit have some more growth in them.

People scoffed when I suggested these areas...now they have performed. With the FHB grant...they have some more lead in the tank. I can see these being suburbs with a mid 4's to low 5s median price suburbs by 2020.

 

At this point I'm seeing more contracts in Werribee and Hoppers that start with a 5, not a 4. I agree there's still growth to be had, but there's a limit to it.

The FHB schemes will give them a further boost, but there's a limit to what that can do. Once that limit is reached, these areas will have a long flat period. Economic instability could make them more vulnerable than other locations.

We're yet to see the peak in the outer west, but I'm starting to think there's better value elsewhere.

 

lots still in 4s

 

Yes I guess I will have to do some ringing around and research if anything is still available. Do you think that would be the best approach to secure something?
I will check out the smaller estates adjoining the big ones. What kind of price would be a good buy for the above size?

 

Yes ring around and see what's available. Also make sure you ask them to call you asap if any deposited lots fall through and come back on the market. You can often snag a good deal there.
The land estates will send through price lists of their upcoming releases so you can get an idea on price.
Many estates there are selling blocks by ballot now so be prepared for this.

Last time I looked, about 4 weeks ago, 12.5x21 lots were priced about 185k in Werribee.

Riverwalk estate sent me an email the other day, land there starts at 208k now. Redlands, an adjacent smaller estate may have the same sized lots alittle cheaper??

After a few phone calls and google maps and you'll start to piece it together

 

Thanks for that, I will definately be doing some ringing around. would you say that if I could pick up a block for around 185k to 200k on 260m to 300m block that would be a good buy. Or is there still some blocks and estates not to touch and stay way from?
Obviously there are going to be great deals and average deals, just need to have some insider knowledge of what these may be haha

Thanks for the information. I will be calling around the later this afternon.

What are your thoughts on this one:
Lot 1416 Riparian Street, Werribee VIC 3030 - Vacant Land For Sale - 2013693711

 

Yeah do some ringing around and see what's available. Nowadays for Werribee 180k for a 260sqm is good....but I don't know the prices today, they most likely have have increased again? They've been going up every few weeks so it's hard to keep track.

End value wise, if you can get a 3/2/2 finished for about 380kish you'll be well ahead.
180k block and a 180k build plus a few expenses and you'll be well under that. Rent should be about 350pw.

Compare that link you sent to what's available at the estates, see how it stacks up.

 

Thanks for the helpful information, I will let you know how I go. Hopefully I can secure something in the new month or so. I will keep you posted.

Feel free to send thorough anything that comes across your path haha

Cheers

 

LOL - 15 months and want to cut losses. Are you serious or what?

Lots of so called investors want to triple their money in less than 2 years of investing in property these days.

Your timing was probably a little off. 15 months ago Sydney/Melb still was growing so you made the wrong choice there.

However now? Well I would hold all your Brisbane properties especially if its all paying itself whats the rush. Your gaining from a tonne of tax offsets anyway so leave it and grow your portfolio.

Also Waterford West 4 bedder avg now is only $360k. If you paid $350k 16 months or so ago in all honesty you probably overpaid for it unless its a special house with major differences and quality renovations done to it.