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QLD Eagleby, QLD - advice needed

Discussion in 'Where to Buy' started by Taku Ekanayake, 30th Aug, 2015.

  1. Taku Ekanayake

    Taku Ekanayake Well-Known Member

    Joined:
    23rd Jun, 2015
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    Location:
    Sydney, Australia
    Hey guys,

    I'm looking to Purchase IP 2.
    My borrowing capacity is limited for my next purchase.
    Needs to be below $250K and achieving a 6% yield.
    I'm looking to buy and hold, and someplace with short to medium term-growth i.e. 1-6year, so I can extract equity and keep purchasing more.

    Obviously there's been ALOT of action in Logan from investors, and has also experienced decent growth in the past 12 months; which is why my search has taken me to Eagleby.

    According to RE.com.au, median price in 2010 was $295K, and currently it is $270K.
    It's yet to experience much growth like Logan, and houses on decent block can be picked up below $250K mark.
    As Logan is gaining traction, would I be right in assuming the neighbouring suburbs would follow?

    Given my restrictions and buying criteria on my next purchase, do you think Eagleby would be a good place to invest?

    Really appreciate any feedback and comments :)


    Cheers,

    Taku
     
  2. Azazel

    Azazel Well-Known Member

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    I've been to Eagleby, it's not the fanciest place in the world, but could be a safer place to live than some parts of Logan.
    Plenty of people have made money from buying in 'interesting' suburbs.
    Sounds like you're doing some decent research. Below its previous peak is a good sign. Just a matter of if you think it will have some growth in the short term, if that's what you're after.
    If you could manage to buy a place for less than it previously sold for it would be even better. It's got to return to it's previous price eventually. Could help with valuation later too.
     
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  3. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hey @Azazel,

    Thanks for the feedback.
    That's true, buying below what it previously sold for would be a good sign.. Will have to dig deep for that.
     
  4. Heinz57

    Heinz57 Well-Known Member

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    Brisbane
    Close to Ormeau, Windaroo, Cornubia, Mt Warren Park etc all nice suburbs. You would think there might be a socioeconomic improvement over time.

    Some parts are low lying.

    I used to rep this area in the eighties and was impressed by all the bars on the windows of the convenience stores and dead bolts on the doors.

    Prefer over Woodridge Logan Central.

    A lot of businesses go quickly broke in Eagleby too, not sure why.

    Can't argue with the yield tho'
     
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  5. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Location:
    Loganholme, Brisbane
    My advice would be to make sure you are paying a fair price or buying below market value for Eagleby, there are some mortgagee sales happening there atm, if you can bag a bargain could be ok, or something that you can add value to. There is a perception with Eagleby that it is at the end of Brisbane, where as closer in to Logan is better located in terms of access to more transport and motorways and shopping and dining and hospitals and education precincts! I just settled last month in Loganlea, 15 minutes walk to the station, 3 bed highset built in underneath on 760 m2 corner block (ideal for a granny flat) for 250k (needs 5-6k reno will rent for 400 my agent says - she wants to ask 420!). I think central Logan suburbs are a better bet, similar price and closer to what I have mentioned above.
     
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  6. Azazel

    Azazel Well-Known Member

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    Looks like you're right, good point in the cycle to be researching going by this:
    Eagleby.jpg
     
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  7. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Thanks for the insight @Heinz57.
    I've only just begun research in the area, sounds promising though..
     
  8. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hey @rico2011,
    That sounds like a great buy with awesome yield - congratulations!
    Yeah, the distance to Brissy was a little worry as it's an extra 10 mins drive.

    Is Longanlea seen as a nicer area than Logan Central??


    Cheers,

    Taku
     
  9. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Nice, thanks for sharing that @Azazel - hadn't seen that one.
     
  10. tomlemke

    tomlemke Well-Known Member

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    I spent two weekends going through opens at Eaglyby, i would
    highly recommend getting on the ground up there yields are what attracted me there
    in the first place, but once on the ground you will realise the tenant
    quality would be a nightmare went through two places that the tenants had
    trashed make sure you check flood maps aswell.
    I prefer woodridge any day of the week just feels to isolated, have
    you looked at beenleigh?.
     
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  11. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Thanks, I had to wait 18 months to find it :) Wait till I add the granny flat :D:D:D...

    I do believe Loganlea is seen as a nicer area than Logan Central, but not by that much. Loganlea has the train station (express to Brisbane) and the new upgraded hospital, Griffith uni and the Meadowbrook Tafe. Also parts of Loganlea close to the station are priority zoning for up to 6 story units and town houses, I'd be looking for a house not a town house or flat (in any part of Logan).
     
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  12. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Spot on, my thoughts exactly.
     
  13. Azazel

    Azazel Well-Known Member

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    Woodridge, really?
    There's always going to be a better location as far as niceness goes, but their point in the cycle should be taken into consideration.
     
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  14. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hey @tomlemke,
    That's great feedback - thanks for that.
    Haven't been on the ground, but will do so in the coming weeks.
    I guess a good property manager will help reduce risk of bad quality tenant, although it's never guaranteed!
    I haven't looked into Beenleigh - will definitely check it out.
    I'm just limited to below $250K and would like a house with 3br.

    Cheers,

    Taku
     
  15. Chillingout

    Chillingout Member

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    Some streets are better than others, I remember driving around a couple of years ago when looking to purchase, I couldn't believe how cheap places were around there compared to nearby suburbs. As luck would have it we drove down one street during the middle of the day that had 3 houses for sale, I soon realized why they were so cheap after seeing the locals all standing at their fences yelling at each other. some parts are ok though and worth a look. Ended up buying in Mt Warren Park
     
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  16. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hey @Chillingout,
    Thanks for the great feedback.
    Sounds quite rough up there. Just had a quick look at Mt Warren Park, at a glance it looks slightly out of my budget but worth investigating.
    When did you buy and how has it performed so far?
    Any growth?
    Yield?
    Tenant issues?

    Cheers,

    Taku
     
  17. Chillingout

    Chillingout Member

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    Location:
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    It was for our first house, ppor. Bought just over 2 yrs ago. Market has certainly been on the move over the last six months as most places in the area, as you would already know. Not sure on exact growth. But bought for $275,000 rents in the area about 330-350. No tenant issues so far :) but no tenant issuses with ppl in my street most have been leasing for last yr or longer and keep yards pretty well maintained.
     
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  18. Lu Bracher

    Lu Bracher Active Member

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    @Taku Ekanayake - what houses in Eagleby are you looking at. Let me know which ones you are considering - for rental - around the money you are looking. I know $250k will only get a small one but what did you want to do with it? just buy and hold or do you need want to develop down the track? Reason, two different styles of buy - if you buy and hold...would prefer you to get something more brick and tile like.. if you want o develop then this isn't so important - I'll be going past Bracken Ridge today and putting up the new letterbox - FYI
     
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  19. Simon L

    Simon L Investment Property Buyers Agent Business Member

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    Location:
    Sydney, Brisbane
    I currently have 2 properties under contract, 1 in Eagleby and 1 in Beenleigh. I've also purchased 2 properties in Eagleby in the past 6 months and 1 in Beenleigh last year. Here are the numbers;

    Eagleby 1
    House (not a highset - just a f'ing big house!), 6 bed, 2 baths, 2 car
    Purchase price: $327,000
    Rent: $500pw
    Gross Yield: 7.95%

    Eagleby 2
    Lowset House, 3 bed, 1 bath, 1 car
    Purchase price: $241,000
    Rent: $330pw
    Gross Yield: 7.1%

    Beenleigh
    Lowset House, 3 bed, 1 bath, 1 car
    Purchase Price: $228,000
    Rent: $320pw
    Gross Yield: 7.3%

    Will share details of the ones under contract once settled :)

    Have not had major tenancy issues at all (touchwood) - tenancy wise, worst thing to happen in the past 4 years with my properties in the Logan council area are rent defaults which have all been covered by insurance. Oh and hot water systems - I really hate hot water systems.

    Overall, I feel Beenleigh has a lot going for it particularly with the city centre undergoing a revamp and surrounding areas rezoned for higher density. I've also noticed a lot of blocks near the centre being snapped up recently with the intention of apartment development. Eagleby is the uglier sister next door and definitely has its good and bad areas - but being in such close proximity to Beenleigh, I feel the suburb as a whole is looking very positive.

    Every investor I've taken up to Logan for a drive around Beenleigh, Eagleby, Woodridge and Kingston agree Beenleigh and Eagleby are better suburbs with a 'nicer feel' to them and I would agree also (I have properties in Logan central suburbs as well). Happy to discuss specifics via PM.

    Cheers,
    Simon
     
    Last edited by a moderator: 7th Jun, 2016
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  20. York

    York Finance Broker Business Member

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    Congratulations on those buys Simon. Real solid yields. Especially the first Eagleby one. That's a great buy. Good work mate.
     
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