QLD Logan Central

I will likely be going up on the 8th August to check out some of my recent purchases and scout for new ones. Keen to meetup as well if others are going?

Greyghost - Not sure what you disagree with but I do agree with most of what you said.

Anything that will yield above 6.5% (houses) without too much work will be under contract within days. There are also a significant amount of seasoned investors/buyers agents in the area who have established relationships with agents and get presented with deals long before they hit realestate.com.au.

Loganlea is currently one of the hottest suburbs as, with any rising market, there are a lot of 'emotional' buyers popping up and the suburb just happens to have a good mix between how 'presentable' it is and highsets that offer that magical yield number (most require work). Runcorn is way too expensive to be added into the mix and the general 'bad area' stigma still mainly lies within Kingston, Woodridge and Logan Central.

I am starting to see a lot of interstate investors pay some hefty prices - particularly for unrenovated highsets that after outlay to make it rentable, does not necessarily make a juicy investment anymore.

 

I m booked in to go up 14-16 August. Looking primarily around Logan central area. I have cousins who live there. They reckon it's not that bad. Between them and tyrone's map I'm hoping to get a good feel for the area. I.e. good streets vs bad ones.

Looking at hi-sets with potential to sublet lower level around 300k Mark. Cosmetic Reno down the track would be a bonus.

It will be our first IP and first time dealing with RE agents - we built our PPOR. So I'm a bit nervous but looking forward to it. If anyone wants me to look at places for them let me know

 

Like rolo, i'm looking at hi-sets with dual occupancy potential around logan central/slacks creek/woodridge. This seems to be the flavour of the month currently. It would be good to check some out together as i'm still a bit cautious with all the regulations surrounding sub-letting the lower level. I think the minimum height was 2.5m, not sure what the requirements are, anyone have a source?

Pretty flexible with dates, i'd prefer to go up with a few of us as i'd be a bit lost by myself.

 

You guys gotta understand you cannot let out lower level separately unless it's legal height and if you buy without built in underneath the outlay is fairly big ( raising and Reno) so prob won't be worth it.
If you buy built in legal height underneath you will be paying a premium and may not have a kitchen and you gotta think about a laundry up and down and then shared power, agent fees lawns etc...
Make sure you know what to look for and the agent will ALWAYS tell you what you want to hear so DONT be a sucker especially if your interstate.
Buying built in underneath and under one lease = different story but yes better yield

 

Personally prefer 1 lease to a big family on dual living highsets legal height or not.

You will likely have very transient tenants if you have completely different tenants for upstairs and downstairs

 

And guy's tell them your interested in anything if the numbers work. That way they don't try to offer crap like this is a good investment $300,000, rents for $320 .

 

This was my rough plan. If the numbers work then its on the list of possibles. Also will try to get the place checked by a PM for rental potential etc.

 

This is why i love the forum, your comments are gold !

thanks guys

 

me

 

Let me know how the story unfolds up north but if you want a few fancies in Logan - let me know. I have been through a lot of houses these last few weeks. They are moving fast though.

 

Do you normally keep an eye out for properties on sale yourself?

Also, anyone else going to be in Logan tomorrow?

 

Runcorn I don't think can be compared to the others listed, its not even Logan. Its a much better suburb.

 

Logan is a bit of a gold mine at the moment for developers. A heap of properties have gone from R2000 (minimum 2000 square meters, typically 1000 to 1500 square meters) to LD RES surburban (minimum 350 square meters, average 500 square meters).

All you have to do is buy one of these 2 story ones with a 4m gap down one side, then you can battle axe the back yard.

 

Generally yes, but on the boarder there are highsets just the same as Logan etc.
Please feel free to contribute.

 

Is this a pick the odd one out question?

Runcorn V Others [Logan, Kingston, woodridge, loganlea, beenleigh marsden]

Runcorn has a median of $500k, Others are under $300k, so a $200k differential
Runcorn has 36% investor, Others are over 50%
Runcorn is in Brisbane City Council, Others are all in Logan City Council.
Runcorn has 20% Chinese speaking, Others have negligible Chinese Speaking.

If you talking about dwelling type, a highset is a highset, or a Queenslander as they called them. Queenslander are everywhere in Queensland

Runcorn would be comparable to Sunnybank Hills and surrounding.

If you need to compare Runcorn to a Logan LGA property, it would be Springwood and Underwood.

 

Na I think Sunnybank Hills is more like Springwood in terms of level of prestige. Runcorn is under. Actually I don't know what Logan suburb it compares with, but it's definitely a step above Logan Central etc.

Maybe Marsden?

 

I'm pretty keen on the local market so I have been around to many properties. Happy to check out for you and offer my two cents, if it helps.

 

Longanlea has a train station and comprises of a mix of high sets, low sets, new builds and acreage.
Aside from the station, there is Griffith University, Logan hospital which recently had a $$$million facelift/upgrade/addition, new Woolworths next to the station in Meadowbrook, a TAFE behind the hospital, a golf course beside the University, the toll booth on the Logan Motorway with two points of entry/exit.... Few other little points.

For developers, the area is generally zoned ResA, block sizes are decreasing but able to average out the blocks.

Longanlea has a pocket of State housing so be careful of those streets - predominantly a pocket to the southern side of Monash Rd. they are scattered but you should be able to tell by driving through those streets. Some on the northern side of Monash. This is what has traditionally scared investors away. However the process of development of the acreage blocks in the last few years has meant that there is a good mix of new and old homes, land is scarce (as I source land for builders and developers also) and prices going up.

The last few years have seen some crazy acreage prices, that has dimichedmpotential margins, but still doable.

 

I like Runcirn also, really good potential but higher get in costs.

Over the last 5 years, the nature of Runcorn has changed a lot. Once the poor cousin of Sunny bank, it has come into its own. Popular because of the explosion of the Asian influx (priced out of Sunnybank), to the south of the train line there were still some really large market garden plots that have since and continues to be developed and sold - more into medium density (townhouses).

The opening of he new shopping center a few years ago boosted this area.

There are several Mosques nearby (on Logan Rd and down near the Station in Kuraby) so this has attracted a cultural diversity of families to the area.

Run corn falls within BCC so rules differ for developments but still huge potential if you can get a good property - only catch is the Asian market you are competing in, they want to be there...they will pay the price.

 

http://www.logan.qld.gov.au/__data/...ancy-Auxiliary-Unit-Assessment-Checksheet.pdf

Please note that there are a lot of DIY jobs and as such you should be mindful of things other things. You'll still need a B&P to verify. Waterproofing - did they tile it themselves? Was it properly waterproofed and can they provide certificates to show this? If they don't you'll need to consider the state of the wet areas and assess, as you nor your PM have any previous history of the problems, it may not surface until down the track - as long as you are aware and allocate potential $1,000 for professional sealing or anywhere to $4,000 to completely redo.
Drainage, the age of the homes were pre yard drainage and as many homes in surrounds have same issue as well as add ins with poor or no gutters, when it rains, it can rain quite hard, you should consider how well the block will remove the water and also if there is potential to enter the base of the property - then you'll need to consider if this can be easily mitigated or should you just walk away.
Termites, ALL highest homes were not intended to be built in underneath. Most homes have steel posts or concrete posts with end capping at top. Most highest homes are made of hard wood but Shadow Rhinos can still do damage to architraves and if they are hungry enough and neglected for long enough, the hardwood. When renovations have been carried out, look for concealed areas and evidence of termites - check all sills for irregular texture and any patch ups, they are tell tale signs of either rot of termite damage. No need to freak out - termite damage means more negotiation. The funny thing is, vendors get quoted several thousands to fix but they generally don't have the money in these areas to do so, however, they will discount thousands off the sale price because the value is intangible.

Omg this is why I shouldn't start writing, it's faster to talk.

From a PM perspective, the amount of rent has a direct correlation to the number of usable rooms, the functionality of the building, the special factor (eg. Views/deck size and condition/pools) etc. bog standard ulgy high sets with no exterior improvements will only return you the bare minimum.

We got $600 pw for a Woodridge property and it won't settle until 27th and tenants secured, but it has a lot of pluses. So when you consider the property think about how you would live in there. There is a trend to combined housing because it is cheaper then renting out individually so they do it, if this is the case, consider the property to see if it has separate living areas/zones that shared households could benefit from. Unique features that add wow. Comfort features - air con. Security features - security screens. Value features - solar.
Accessibility features - slope of block and functionality of yard....

There is heaps more, if I haven't bored you to this stage let me know, I can always add.