QLD How are your investments in Logan Going

Sounds too good to be true, whats the catch?

 

Bought 4 in the Logan area in past 12 months. All yielding at about 6.5%. I am not sure about others, But I am finding the Logan council rates ridiculously high and putting a dent in my cash flow. Partner wanted me to STOP buying in Logan after the second one and look for something in western suburbs of VIC or in Frankston. But the yields in VIC didn't compare well to what was in Logan. Also I respect Simon Pressley's comments and he had the below to say about Melbourne in general.
Melbourne: Job Losses & Over-Supply Likely To Push Property Prices Lower - Propertyology

 

Purchases second half 2015. Marsden.

No catch. It needed some love (holes in floor, no rails on balcony etc) so people put it in the too hard basket and overlooked an amazing opportunity.

Ample room for a granny flat out back too.

 

Make sure you get your 4 properties water complaint, so you can pass on the water consumption on the rates notices to the tenant....

 

I recently did that, so hopefully from next quarter onwards I get some relief. Council rates alone are on the high side in my opinion.

 

Fairly sure Rochedale has always been there

 

Enjoying the read here and good info. Well picked topic Sash.
Anyone bought in 2016 in those suburbs.

 

I purchased on November 2015. (Slacks Creek)
Coming up to 6 months now. Tenants have been a dream.
Water compliance check was done last week in an attempt to pass the cost on to them.
Hopefully keeps going like this.

 

Hi Sash I am currently looking in some of the Northern suburbs around Strathpine, do you mind sharing what you purchased there? It is hard to find something with a decent yield. Do you believe there will be some decent capital growth in this area in the next couple of years? more than Logan?

 

Hi Tegs......Strathpine has heated up quite a bit but still some good buying there and surrounds. I feel there is still some growth left.

I picked a BV 3 x 1 x1 house with a large vendah out back with 2 living areas (or 4th brm) for 301k. I did a 8.5k reno....the values now would be 370-380k. You can walk to Strathpine station and the Westfield. I now rents for 360pw. I bought this in Aug 2015.

The next statement is going to get the great unwashed upset.. I think you will make more money in Strathpine than the lower socio-economic areas of Logan. The better areas of Logan will have similar growth to Strathpine.

 

As one of the 'great unwashed', I am not upset, merely amused and in particular curious about your statement.
How does one make more money in Strathpine than say, Woodridge, Kingston, Slacks Creek, Logan Central, Marsden, Crestmead, Loganlea, Browns Plains? Through yield or capital growth or development opportunities?

And surely Sash, you are not baiting the good people who have bought in Logan, are you?

 

That sounds like a great buy sash, its very hard to find anything under 350-370k now for that type of property.
I also believe there is more growth to come in the area but the yields are generally too low for what I require......not giving up though, just need to find that property with cosmetic value add potential. Cheers

 

Where does loganholme sit on the pleb scale? Hasn't been slagged yet

 

For as long as I can remember.

 

Loganholme's pretty much like Springwood and Daisy Hill - your typical middle-class aspirational suburb. But you've got to look at the Interactive Logan Map to look at the zoning precincts and check the usual overlays (flood etc)

 

Not at all...I just feel that like Caboolture...where I see it as too rough all...I personally would not want to buy in Woodridge...or Kingston.

Money to be made Browns Plains...and Regents Park...they have moved a bit already so have Marsden and Crestmead.

 

A couple more please, if you dont mind answering.

1. How can it rent at 600 per week? Dual Occupancy?
2. Do you think there are more such deals?

Regards

 

The first example in my post I gave was actually Woodridge and the third example Kingston.
I know many people who have made wonderful buys in Woodridge and Kingston
If you look at their positions on the map
Above Woodridge is Underwood, one day parts of Woodridge may be rezoned Underwood
just like a part of Kingston was renamed Slacks Creek to bring the area up
Beside Woodridge, Kingston, Logan Central and Slacks Creek, across the Motorway, is Springwood (the jewel in Logan's crown) Daisy Hill and Shailer Park

Below Kingston is Marsden, Crestmead and Loganlea
Parts of Kingston may be absorbed into Loganlea, Crestmead and Marsden
Slacks Creek may one day may be renamed part of Springwood etc etc

Just like a part of Mill Park in Melbourne was renamed Bundoora recently, the part above the Northern Ring Road. It had an immediate impact on prices.

But I am confident that even without renaming or redrawing the boundaries - much beautification like Margaret Lomas has talked about - is going on in Woodridge and Kingston. There are lots of infrastructure, attraction of industry/jobs, and improvements being made with all the money granted to Logan Shire by the State Government. There is also the new Logan Planning Scheme which allows dual living, auxiliary units (70m and 100m) and rezoning into higher densities.

 

1. It was a very big house and now has more rooms, another bathroom and a second kitchen.
2. Of course. You don't find them though, you make them.

 

OK...will keep on eye on the better parts of Logan.