QLD How are your investments in Logan Going

I shall engage you in every future transaction

 

You should totally become a buyers agent!

 

What are your thoughts on buying a house v/s townhouse?

 

If Logan... buy a house.

 

What's happening on the ground in Woodridge / Logan central area lately? Is it starting to slow or still going strong? I've noticed that the medium prices have pulled back / gone sideways for last couple months in WR, but not sure whether market is losing heat or just some lower priced places in the mix..

 

Pretty sure a lot of the growth in the cheaper suburbs of Logan are fueled by investors. Better areas of Logan are doing well also due to block sizes.... you have a better chance of getting "a" backyard.

 

Absolutely agree with you.

Areas like Rochedale South, Underwood, Meadowbrook, Spingwood....all doing reasonably well and going strength to strength as people buy to live and are pushed out.

Investors are concentrated in Kingston, Woodridge, Logan Central, Slacks Creek, etc...vacancies no increasing...and interest has now stabilised somewhat...

 

How are people going now?

 

All my houses in Logan council are going awesome. Haven't had a single vacancy and all of them are returning minimum 5.5% ROI some as high as 6.1% which is damn awesome.

I'm just gonna continue buying in Logan until I reach around 10 houses. I'll just leave them as they are all positive geared pretty much and I get huge depreciation on some of the newish ones along with other tax benefits.

Over the long term > 5 years I'll be laughing all the way to the bank.

 

Here are some figures for people interested....Got a 3 bed townhouse in Woodridge. Big gated community with tennis courts and swimming pools. Purchased 210k mid 2015. Others in complex now selling between 220k-240k depending on renos done. They seem to take while to sell and there are always 4-6 for sale at one time. Mine rents for 340pw. Awesome tennents. Strata is ok at $626 pq. But rates inc water are approx $3600 then add $400 landlord insurance. I put 20% down on this one so only owe 168k. Interest on that monthly costs me about $560 and after pm fees I get about $1222 monthly in rent. So expenses are covered but this is the only one of my properties that hasn't gone up. Well maybe it has 10-20k. Depreciation is good approx 3-4K over each fist 2 years and declining from there. Don't think I would buy again there but it does feel like a safe investment because anything that is purchased under the price to just rebuild the dwelling without added land value, it's hard to see how you can lose on it.

 

You only had it for around 2 years. You bought a place for dirt cheap at $210k. Going up by even $10k per year equates to 4.7% growth per year. That is not bad and inline with annual growth figures.

Remember Logan is a steady growth council until it booms. That is what most Brisbane investors are waiting for. All in the same time you are benefiting from depreciation, rental and a bunch of other things. Sit back relax mate - it will pay off.

If you comparing your Sydney investments to Brisbane well just dont do it (since I see your from Sydney). Lets just say I made more money in Sydney to probably buy 5 of my Brisbane houses outright in cash. Sydney is/was in a boom Brisbane and surrounds are not yet. Hence we are speculating that the boom will come soon due to Sydney/Melb being ridiculously too expensive now.

But yes I agree that buying houses for less than they could be built in the current time reduces the risk immensely if something was to happen. Also you are positive geared so there is no stress on you at all. Enjoy the ride and watch it increase over the next 5 years no problems.

 

Compare to inspirational people here in PC, I bought into the brisbane bandwagon little bit late in 3 br house in Bethania Apr 2016 for $318k. It is currently rented for $360/wk.
Yield around 5.9% and in terms of capital gain, optimistic of the next 3-5 years Brisbane will close the gap with Sydney from 1:2 to 3:4.
One can only dream.

 

Waterford west 3 br came up for lease last week, rented again already with no vacancy in between.
Paid 310k renting $365 pw, rental market still looks good.

 

Beauty mate. Congrats - that is very good ROI. 6.12% is awesome.

 

Shailer Park outdoor be in the "good area" bracket definitely

 

Loganholme is now considered a "good" area and rents very well currently

 

I had a call from the agent that sold me a place in Slacks creek last week. He just sold a similar 4 bed high set two doors away for 356k, I paid $252k in Feb 2015 I was in shock as it was a cash flow buy.
It's been rented for $380 per week since day 1.

 

That is what I call a excellent buy. Congrats and may the cash keep flowing for you.

 

Nice work, 4bedders are very popular, they rent in a flash especially low set. These particular tenants we are trying to place already rent from us however the owner has been forced to sell and the purchaser is an occupier unfortunately. These tenants have really looked after the property and it looks better now than when they moved in 5 yrs ago.

 

5 Alan Street Slacks Creek Qld 4127 - House for Sale #125411674 - realestate.com.au

This is an example of how overhyped logan is/was

Was for sale 280k+ in april 2015
offered 275k and got accepted at 280k though rejected it and owner pulled it of the market
Fast foward 2 yrs still lingering at 295k+ (hasnt really performed well while at this time properties were available in 2770 for high 300s).

Property is also dual livable if you convert the laundry to a kitchen (1k budget would be enough if you take away the need for a oven - $50 convection oven would do the job). Could get 400pw but after expenses not including repairs and maintence would probably get 290 in pocket so cashflow neutral is possible. Hopefully does move forward but am a bit skeptical on this side of logan.

Have seen daisy hill/springwood/underwood move from low to mid 300s in 2015 to 400-500k suburbs over the 2 yrs though yields were closer to 4-5% back then and now 3-4%