Hi Guys I Need your opinion on buying a older property in Longan (apx 440K) and build a granny flat (apx 150k) What's your pros and cons , my main focus is cash flow and paying it off in 15-20 years to have income when retirement comes . Anyone one done it or planning to do it ? I would love to hear your opinion !!! There is buyer's agent i have seen on youtube called pumped on property , any feedback ? Cheers Krystian
Sounds like a pretty generic strategy and I imagine you could do better with 590k over the span of 15-20 years.
If that's the one golden egg you have to do well, I wouldn't be risking it in Logan. (And I'm not a Logan hater). I would buy a house in the best OO suburb I could afford for 600k, maybe with add value potential and rent it out. Look back in 20 years. You'll likely be very happy.
That's my concerns as well , if it was somewhere else maybe but worry about quality of tenants over there ....
Alternatively you could find a great deal on a highset house in Logan that needs a cosmetic renovation, fix it up then rent it out for a high yield. Buy under market value then once your renovation is complete you've added instant equity. Here's an example I did last year: https://www.realestate.com.au/sold/property-house-qld-loganholme-131998722 Bought for $270,100 REALas: Property Price Predictions, Real Estate for Sale & Sold Prices Sold for $395,000 12 months later after a 10k renovation. If I held it after the renovation the property would've rented for around $420 a week giving nearly 8% yield!
Very equity heavy strategy. You'll get 80% LVR on the house purchase, then you'll probably need to fund the granny flat construction with cash. Unless you're unable to get a loan and only using cash, I'd recommend looking at how much equity this strategy would require, and considering what you could use this equity for elsewhere. Then weigh up the pros and cons. At the end of the day, you need to focus on what return you can get on your equity.
Hi Kunga, I think the generic plan off buying in a Logan City Council area and value adding to hold is sound. I would go further and say it would nuts to exclude a diverse region where 25% of SE Qld ppl live ..... like Logan just bc some ppl on a forum don’t like the sound of the word ‘ Logan ‘ . the thing I would do is not constrain urself to GF only. If u can pick up a well zoned property the options are greater. GF is one of the options rather than the only one. My tenants in Logan are GREAT but don’t have airs n graces. There money is the same as all the princes and princesses in snooty land. Would u buy in Albert Shire? Beaudesert Shire? Well now they are Logan City , so I think long held prejudices from inner city types might lack perspective, reality and credibility in terms of advice. Summary : Why not Logan? Yours in boganism BFL
I have 3 such older home + granny going in Logan. Browns Plains, Crestmead, Eagleby. Able to pay P&I and all costs from rent alone and still get some money back. Works well if you seeking a cashflow positive. Even better now with refixing to lower rates. However, I don't think i would be able to sell these for anything over $560k when the time comes to sell (soon).
Hi holmes Wondering how big are your lands to achieve the granny flats? How big are the GF and how much rent do you achieve from the GF +IP? And lastly, how much did you spend on each GF? Thanks and sorry for the queries.
All 3 built before new rules. Land size for first was under 700sqm, the other 2 over. Cost $113k-$125k due to diff years of build. 2 bedroom 70sqm. Rent combined $600 to $620/week. Room to increase rent.
I’m looking at putting a GF at the back of my place in Kingston. I’ve been quotes $160k which I think seems high. This is the first time I’ve done this so keen to hear how much others have paid. Thanks
For another 120 to 130k you could buy another property and hold double the land. Remember land appreciates and buildings depreciate.
Seems a bit high but depends on spec and requirements. Beware built costs have skyrocketed due to timber shortages etc. This is not just for GF’s nor just in Qld either. Also be aware likely council fees are now approx $16k as have increased significantly from applications after April 1st. Could still work for you but check your calcs & strategy carefully (ie plan to hold indefinitely??). Good luck!
Hi Kunga, Did you end up using the service of pumped on property. I listen to their podcasts and am thinking of engaging them. As i am looking for a similar strategy as they do.
Wow I just had a look that's incredible! Domain is estimating it could be worth 430k-485k. Did you use a BA to buy this? Do you regret selling?
Yes, it's now worth around 450-460k.... No I did not use a BA to buy it as I am a BA in Brisbane Nothing beats being on the ground to find good deals!
