QLD How are your investments in Logan Going

That is great..... @Tekoz you can have the last laugh now!

How is your investment going?

 

Is this what a bank is lending or what a valuer put the value at ? I highly doubt it.

 

Yours finished last year, but you bought OTP before that, right ?

Either way, at least it is working for you.

 

Just perfect timing. Decease estate. Spoke to REA who I'd been dealing with a lot. Went up on a weekend when it was bucketing down with rain...luckily a cheap reno

 

There's a multi-million dollar promo for Logan recently released. Linky

Didn't know the Qld govt was so serious about attracting investment into the area.

 

Hey guys, just saw this thread and wanted to share my personal experience with Logan. Between mid-2015 and late 2016 I jumped on the Logan bandwagon and accumulated 4 properties:

1. Woodridge (northern pocket bordering springwood) purchased for 320k, rents for 390 (market rent probably 430 but good tenants so keen to keep them on) bonus was townhouse zoning (I wouldn’t pay a premium for the development potential but it was a nice cherry on top as agent and was not aware)
2. Waterford West purchased for 340k, rents for 450k
3. Woodridge (northern pocket) purchased for 335, rents for 390
4. Kingston - purchased for 338, rents for 400

All properties were traditional high sets with downstairs enclosed and converted to habitable areas and bathroom and toilet downstairs, all blocks larger than 600m2. All tenants have been good and yes you get the occasional rental arrears but you'd be tripping if you think it’s always going to be rainbows and sunshine with tenant management in Logan. I believe the yields and low vacancies well and truly compensate for this risk.

My personal advice to people who want to invest in logan is don’t be a tightarse – with property managers and with your maintenance (drainage and pest management in particular).

If you look around now, you won’t be able to pick up those converted high sets for that price anymore. I'm not going to speculate on how much the values have "moved" as I haven't seen any recent sales data but it's clear to see the market's obviously not the same growth experience in Sydney or some other markets but sometimes I feel investors forget the inverse relationship between yield and CG.

In summary Logan has done well for me on an investment level but has done a lot for me on a personal level. It made me break out of comfort zone and invest interstate and it was my first investments so it gave me a good introduction on the importance of forming a good team, structuring finance, negotiating deals and of course utilising my professional experience in town planning and building surveying to do my due diligence. On top of all that it’s been very fun, entertaining and educational.

I don't expect Logan to go up 200% like others have been comparing this to 2770 but for me it was a huge stepping stone and learning curve and I look forward to using the experience, skills and confidence I have developed through Logan to do my next wave of accumulation.

Good luck to all investors.

 

Thanks mate,
That only works on the paper, I must admit. I do not plan to sell it for the next 10 years anyway.

But according to the Logan hype thread, the area is continuously growing.

 

Hey @sash well, I'm still OK .

 

Hi Guys, It may sound like very basic question but how do you make a property water compliant to charge water consumption from tenants? Is it a clause which you put in lease agreement?

 

You get a plumber to do it and provide certificate

 

No, it is not wording, it is having specific items installed and testing water flow, if you know what to do you can do it, or get a plumber and get the certificate, if you are challenged you will need to show the property complies or complied.

 

Keep in mind that the plumbers use restrictors which reduces the rate of flow from taps etc. They may start complaining about low water pressure or that the water doesn' heat up quickly anymore. Had this issue with 1 IP and after a lot of back and forth I had to get a plumber to rip it all out.
My friend who is a plumber mentioned he gets a few jobs a month where he needs to pull out the restrictors.

 

What are peoples predictions for Logan (i understand there are many suburbs that make up logan, but just generally) in the next 5yrs? Will we see much growth?

 

Thank you everyone. I had an IP which I've recently sold and since the last tenants moved in (over 1 year ago) the water consumption increased more than double so the PM suggested that I can charge the consumption from tenants which I did and I wasn't aware about water compliant Cert. The tenants have paid first 2 bills but have not paid last 2 combined amount of $900 so the PM suggested to take it to dispute resolution with RTA. But in the absence of water compliant Cert, not sure if that's a good idea?
Any thoughts?

 

Without proof of water compliance you are not legally entitled to claim water usage from the tenant in Qld. And it must also be written into the lease, you don’t just start charging whenever you like.

Go to the RTA and you will be refunding any money previously paid for water consumption. You won’t win.

If this is the advice of your PM I suggest you get another, one who actually knows the rental laws.
Marg

 

Yep, my thoughts are you will be ordered to pay back whatever they already paid, get it compliant ASAP or swallow paying for them wasting water.

 

Thanks for your suggestions guys. As the property has been recently sold it won't be possible to get the water compliance Cert now so I think it will be wise to just forget about the outstanding water consumption charges and be content with what has been recovered in the past.

 

First hand rental market update.
I have had a 5 bedroom highest house in Waterford West on the market for lease, it took about 8 weeks to rent with a $30 drop from $420 to $390.
Much harder than last time I leased it about 2 years ago...

Looking at adding a shower and kitchenette downstairs or internal stairs to increase rent appeal the next time around.

If your lease is coming to an end, make sure your property stands out from the crowd.

 

I agree with this. Market has definitely moved with prices that have gone up some what.

I went up there 2 years ago and didn't invest because I felt a lot of the properties were quite run down and I would have to spend more time and money repairing these properties.

It's interesting to see what people's feedback have been..

 

I think the northern pocket of woodridge is well worth spruiking. I have heard that students are moving in as it is commutable to the 'chinatown' areas in Sunnybank, and to uni. Great location.