QLD Logan buying guide

yes, its certainly possible for logan to perform over 10 years. No one is doubting that. What I and others are saying is that the CG is volatile- if the CG were less risky/volatile, then the 10 year growth will be more than 40-50%. To compensate for that risk (cg risk/volatility, tenant risk, etc...), the yields MUST be higher....something has to compensate the buyer for taking on the risk- and that's yield- hence seanbrissy original post about 'yield buy'...
( correct me if im wrong @seanbrissy)...as well as my previous posts suggesting the same.

This leads me to believe that buyers chasing CG in areas like logan need to time it. Absolutely nothing against that, just that timing is tough to get right and that too consistently getting it right is even tougher.
Compare that the inner stuff (ex hi risk - floods or oversupplied stuff) and most have shows stable and consistent ( although may not be as % high) year on year growth. The inner will also be less hit during cyclically downturns.
And over the long term as you indicated , the CG in inner will generally outperform the outer.
This is generally the case for inner vs outer - which has been analysed with much data I would think in various materials...
Now that's further clarified...can we all just go back to hyping Brisbane

 

Are you seriously hyping Brisbane in a Logan thread? Did you declared that Logan brother from a different mother [to Brisbane]?

 

Jump over to the hype Brisbane thread...the one where people talk about what they had for breakfast or the color of their socks...

 

A tip for those trying to get the numbers to work in Logan. There are two price brackets to aim for:

~$250,000 - usually low set three bedroom properties. Renting for $320 to $330 per week. If you can pick these up, there is money to be made. Had a client get one of these at auction over the weekend so they are still out there

~$350,000 - dual occups, higher price point but you have the ability to command rent around $450 per week provided the setup includes second shower, kitchenette etc. A cracking one sold on Saturday, first viewing. It was in the better part of Slacks Creek, sold around $370,000 and will rent close to $500 per week. Great buy!

The prices in between, don't really work. I see lots of 3/1/1 without much potential asking around $300,000 and renting for $330 per week. It will be negative from day one, stay away.

Also the rates are higher in Logan, so you need at least 6.5% gross yield to have a chance at neutrally geared.

Lastly, there are a few areas to avoid. Suggest going back to Somersoft and scrolling through for @Beanie Girl posts on Logan, it's all there. She is the original and best guru on the area

Good luck!
Michael

 

12 Month Price growth for Logan suburbs as you can see an impressive set of numbers. Some suburbs achieved close to double there average annual growth in the last year alone. As I mentioned stand out growth comes from Suburbs closest to the Pacific motorway for easy commute North and South - Kingston, Logan Central, Loganholme, Loganlea, Slacks Creek and Woodridge.

Despite this growth in the last 12 months many of these suburbs can still be obtained under 350K, and with some good groundwork and smart buying it is still possible to buy true cash flow positive properties in Logan. Once again as mentioned ensure you buy the right property and right location within these suburbs, as there are good and bad areas to all Logan Suburbs.

Who wants capital growth and cash flow positive????

Berrinba: +3.66%
Boronia Heights: -1.33%
Browns Plains: +4.61%
Cornubia: 9.21%
Crestmead: 3.39%
Daisy Hill: 4.91%
Forestdale: 11.54%
Meadowbrook: 5.41%
Greenbank: 2.91%
Heritage Park: -.48%
Hillcrest: 4.93%
Kingston: 7.34%
Logan Central: 9.34%
Logan Reserve: 14.75%
Logonholme: 7.22%
Loganlea:9.68%
Marsden: 6.35%
Park Ridge: -.36%
Regents Park: 1.41%
Rochedale South: 5.94%
Shailer Park: 5.74%
Slacks Creek: 6.21%
Springwood: 1.7%
Tanah Marah: 4.74%
Waterford West: .46%
Woodridge: 8.49%

 

Are those % increase over the last 12 months?

What are your thoughts on Marsden, Sean? From what I can gather, you think there's still a fair bit of land for massive growth in Marsden?

I've also noticed fairly decent price difference between Crestmead and Marsden though it's only next suburb across.

 

I am a big fan of corner lot in LCC.
I just spent 5 min looking at this corner lot in Loganlea.
72 Monash Road Loganlea Qld 4131 - House for Sale #121497374 - realestate.com.au
700m2+ corner lot. main dwelling is shifted to one side.
You can effectively build another 3-4 bedroom dwelling ( not annexed unit). You have the option to strata title it and sell off separately or keep under 1 title.
It appears to require some work. Another uplift in this property is Agent advise legal height. Maybe a 30-40K can turn lower level into dual living?
Con maybe Monash bit busy and closer to some townhouse

 

Hi RR - also it appears the property has a retaining wall around it. Potential issue?

 

lol to prevent getting out or in? It just look like another 1.8m fencing to me.

 

I'm a huge fan of that pocket in Loganlea, huge potential for the future with the new development guidelines. Monash Road isn't that busy as it's local traffic only, however it sits just outside the precinct boundary otherwise would probably go for 350k +

Personally I'm not a fan of the auxiliary option - spend 50k for probably the same CG, also building underneath would probably yield the same results. You also have to be careful as many buildings in Logan contain asbestos which can make renovations problematic.

House and land packages are trending in this area.

Massive development blocks are selling to the West around Haig and Pinelines street, 2 acres recently sold in Haig street for 865k absolute bargain.

 

Hi Fungus,

It would all depend on what price point your paying? and what your looking for?
Marsden is further out than other Logan suburbs, yet prices seem to be similar. You can get some decent sized blocks North of Browns Plains road which seem to selling OK, also check flooding in some streets.

 

Well, I recently bought a 4/1/2 lowset on a 690sqm land for $320k in Marsden and renting for $375 but feel like I've overpaid. It is north of Browns Pains Road, and not close to flood zones.

I'm just curious to see whether you think there's much growth with Marsden, especially since you mentioned that there was more land out that way.

Looking at possibly getting a second at the moment - $350k range. Want to look something a bit closer to Slacks Creek/Logan Central as well, but do you think it's a bit too late to jump on that?

 

Seems like a stock standard type of buy and yield for that area.

I prefer Slacks Creek and Logan central, and defiantly not to late to get in, upswing price cycle only commenced approx 2 years ago.

 

last time I crunched in the Housing commission figures, Marsden sits on pretty low numbers probably under 5%, while others like Woodridge, Kingston, Logan Central is around 10%. These are still low numbers in my opinion. We see Zillmere, Petrie etc are hovering above/below 10% as well.

 

Thanks for the loads of knowledge that you share in the forum. I have been looking in both slacks creek and Logan central.
I am getting a house in Logan for 345k renting at 390pw. It has dual living possibility, but not legally. One I saw I slacks creek is selling for 380k,but its brick and solid built. But, rents would be not more than 400pw.
What do you recommend out of both?

 

Hi Retire Rich101. Good to be back on a forum and see you on here. You kindly gave me some feedback on somersoft some months ago on a IP i have @ 71 lynelle st, Marsden. 994m2 corner block. I've just started the very first stage of subdivision (D.A Stage) with plans to turn 1 into 2 lots and use the vacant land (aprrox 500m2) to build a duel occ with duel key (3 bed with annexed) or try to see if a duplex 3 by 3 with strata title would be possible but this would be "impact assesable". I will either keep or sell which is another question all together. I see your suggestion in this post to avoid those paths by building a second dwelling and strata titling. Is this a better option in your wise opinion?
Obviously the subdivision costs are expensive.. From what i gathered a secondary dwelling can only be rented by the same household unless its a annnexed unit (2 bed 70m2).

*Does the Secondary dwelling (3-4 bedroom) have a infrastructure charge?
*Strata titling costs?

Im Obviously a bit confused as i thought i was on the right path until this posts as i respect your experience and wisdom on these matters. I guess its a bit of a Youngbull trying to get guidence from a old bull... If @seanbrissy, @Michael_X, @BeanieGirl or any others had feedback would be greatly appreciated also.
Cheers

 

Hi RR I thought you had to have a land size of 1000m2 or you only could build granny type unit size 70m2 if your size of land was under

 

Good to hear from you Young Bull. I always express interest in your land as you know it

here is my feedback to your corner lot ( note I could be way off as I am not a town planner, developer etc)

you could have following options in your land:
1. Subdivision - you need 1000m2 to subdivide, whether a corner or regular lot. You're on kind of border line with few metres off. Best to paid council (i think ~$800) to have a technical feasibility discussion to see if its supported. Sometimes a email to LCC they might indicate a yes or no
If subdivision is supported, you can keep existing dwelling and sell the vacant land. But you will need ot paid the obviously the DA, subdivision and infra cost before you can sell. The total cost of this I believe is about 55k-70k give or all take
I would also consider building a new dual income property on the resultant land if this permits.

2. Dual Occupancy (Separate Title) Build a 3-4 bedroom (not limited to 70m2 or 100m2) on the vacant land. You will need to paid similar development cost as above, plus the infra cost. In this dual occ build you have the benefit to strata or keep it as one title (pro to save council rate cost?). You can strata title down the track if you want to sell.

3. Dual Occupancy (1 Title, Annexed Unit) This is under new planning that was adapted May. You might be able to push for 100m2 build because your land is close to 1000m2 and corner position. In my view, council will support. Benefit of this annexed unit, is you DONT need paid the infra fee(about 28k), the DA cost maybe cheaper as well. Con is you may not able strata title it hence sell it separately...

In my view,

1. You need to ascertain the development and infra cost for the all 3 options, to make your decision..
   
2. 1 provides more options for yield and possible profit on build, but requires deep pocket as new build and development cost more
3. both 1 and 2, provides flexibility to sell 1, keep 1 or keep both
4. My personal preference in order is 1> 2 > 3 if your land and pockets permits ( I believe this was the advice I provided to you back in SS?)
   
5. I prefer to execute 1 and 2, hold for 2-3 years after the new build, then sell off the old house, keep the new stock. There should be some capital lift for Logan properties in the next 2-3 years, so probably better to ride the wave...

 

it's been a while I have read the LCC new planning, but from memory for annexed unit (under 1 title with main dwelling, aka granny flat for NSW):

• 450m2 land you can build 70m2 annexed
  
• 1000m2 land you can build 100m2

Max 2 bedroom

 

A corner block that RR was referring to that is at least 700m is a different beast altogether under the new Logan Planning Scheme 2015, Tranquilo. Because a corner block has 2 street frontages, an owner is allowed to build a new full house (3-4 bedroom) on this type of corner block. Could even be a new dual occupancy/auxiliary type house. You can then either strata-title both houses and sell both off or sell 1 and keep 1 or simply keep both on one title and enjoy the rent.