Disappointing Growth- Woodridge- Logan, QLD

Hi All, So...I am back and am resurrecting this post because it looks like it is time to sell, mostly for personal reasons, combined with the cost of maintenance on the property. We are getting a valuation from the same agency that does our property management for us. I am expecting that after all the fees and expenses are taken into account, we will probably make a loss on how much we currently owe.

 

So can you explain why some investors on this forum keep promoting to buy in Logan, when clearly it makes no sense.

Seriously, investors on this forum need to take responsibility for their own investing and stop believing everything they read on a forum. This forum has become spruikerville big time unfortunately.

Enough of my rant

 

Best of luck JoL0 and hope it goes well.

One thing you might consider regardless of the outcome is to keep active on PC, as to me investing is not a passive thing. Things always change and to me putting 300k (using your Woodridge as example) I would want to keep abreast of any changes with property investing as I have 300k (plus my ppor) on the line.

If it was $1,000 I had invested I wouldn't be as interested in spending as much time.

 

Wouldn't that depends on each individual deals in Logan? I mean there are some great bargains and there are some rip off sales in Logan LGA. Wouldn't due diligence needs to be done for each deal? I am sure there are some people who have done well in Logan. They have done their sums.

 

Haven't read the replies and I do have a vested interest in Logan.

2007 - 2010 was the last 'peak' in Logan and unfortunately you timed your Woodridge purchase quite poorly. Not the end of the world as $258k for a house in Woodridge today would actually be considered a good buy (assuming its in livable condition, not on main road etc), but Logan as a whole has dropped significantly in price up until around late 2014. Although it has experienced significant growth in the past 18 months, we have arguably not yet reached those levels of the last peak just yet.

Its also hard to know your situation specifically. Maintenance issues are a problem with property in any area and its important to get things done right from the get go to avoid ongoing hassles. Are you spending the required money and getting proper trades? Did you buy a 'dud' property with significant issues in the first place? Perhaps an incompetent property manager has been a contributor to your problems?

Also, not knowing if your property is a highset or not, there could be options for you to significantly increase the value of your house especially if there is an opportunity to convert it into a dual living property. Along with a cosmetic renovation, these properties have been selling for very surprising dollars in recent times - much more than market value.

Logan has always been a "make your money when you buy" kind of place, and like all lower socio economic areas, require extra attention to market cycles, market values, rental yields, location and property conditions. There are people who have made a lot of money in Logan, some who have retired early from it, and many more who are well on their way. Like all property investment, thorough due diligence should be carried out before any purchase and education on the costs of ownership should be well understood.

 

As per sea change, jpcashflow had provided inaccurate info. He's basically quoting property for sale from all suburbs in a particular council, rather than Woodridge.

The reason jolo didn't make much growth is because jolo has purchased in a poor timing of the market. Jolo purchased in 2007. Brisbane has peaked in 2007/2008 and perhaps over shooted in 2004(?) increased 60%+ in 1 year. It fell then stagnated for the next 6-7years. This cycle is the Brisbane cycle.
Where there is sign of recovery is around 2013/2014, probably around 10% per annum for the last 2 years. I don't know what's in store for 2016 onwards.
I purchased in 2014 for around 250k so similar pricing as jolo

 

timing is everything

 

True,whilst I haven't made massive gains on it my first IP that I purchased in Waterford in 2014 it was at the same price the owner purchased it in 2007 for @370k.
Since than the suburb has gone up approx 18%,timing and patience make a good mix.

 

I am hoping purchased in 2014 would "double in 7 years" in Logan...
So come back and revisit this page in 2021 and smack me M

 

9-12% per annum increase in the last 2 years appears to be the consensus in Logan, whether better suburbs or ses suburbs.
Anything more than this, likely purchased well (and justifiable of the increase in day 1) or reno done or the property had a twist.

 

Growth in Woodridge has really been concentrated in 3 years over say the last 12yrs or so.

As per below
2003 +66.7%
2004 +29.6%
2007 +28.2%

So if your brought in 2002 and sold in 2010 you would have more than tripled your money!!

 

As a lifelong Brisbane resident, I get a giggle at the southerners spruiking Logan / Woodridge. Still plenty of undeveloped land out there to keep land values nice and low. Also anyone who thinks Woodridge boomed 66% in a single year is looking at a dodgy data source.

 

A

Averaging out the maintenance costs what is the Net Rent Yield ?
Do you make much of a profit ?

 

I love this attitude

I'd agree the data is dodgy . We held several IP's in woodridge / Kingston at that time . My recollection is that prices doubled in around a year so 66 percent is too low ....

We have friend who have a similar attitude to you and was shocked when they found out we had bought there.

Logan cheap , dodgy therefore it's not a good place to invest in . Most of that land you look at is flood prone or not zoned residential and they don't seem to be in a rush to develop it and it hasn't stopped Logan from doubling in the last few cycles .

To quote Sir Humphrey ," it may be a dung heap , but it grows beautiful roses ...."

Though in our case a waterfront weekender

Met the same attitude in rocky and the same thing happened .

Cliff

 

I was going to respond to that but couldn't be bothered. Clifford summed up what I was going to say anyway. You could make just as much money in BCC as Logan.

 

Correct...but with 1/100th of the potential headache from what i hear.

 

Maybe, maybe not. Depends on the type of property and area.

I will say one thing though, as a landlord I would rather deal with a lowset brick house in Logan than one of those wooden monster Queenslanders in BCC from a maintenance perspective.

 

I always think its better to buy in markets that are already MOVING TODAY, it just makes sense.

As investors looking at past history is dangerous IMO because history is actually not repeating itself, but investors are ignoring this. I have said it now, don't shoot me please

MTR

 

So when are you going to be buying in Logan then? It's been going up for the last 2 years according to every single data source.

 

That's good, have you accessed equity yet?