QLD Logan hot spots! Insider knowledge

Also i think with logan quantity is just as important as quality, they might only go up 50-100k but if you have 5 of them could potentially be 500k with most likely them being positively geared, also flexibility with selling off that capital

 

Oh nice, im in caroline springs !
Yeah cant compare melb and syd with Brisbane but i think it will have that ssme ripple effect, to put a time on it... how longs a peice of string haha

 

Frank yeah I agree Logan is in a great spot if you can get a whole bunch of them and there costing nothing great.

 

I'm not knocking Brisbane I love the place less then half the people of Sydney Melbourne can actually drive a car in the city up there population in Sydney and Melbourne needs to come down in 10 years imagine those 2 city's.

 

It does have a nice feel to it doesn't it...just keep in mind though the way the cycle works....prices in one area go up and then buyers are pushed out of those areas into cheaper spots....brisbane goes up first(inner..middle...outer)....then logan....then ipswich. Good quality areas in Logan will do well and are already up 5% for the year (same if not more than Strathpine)...just not the ones with too many investors ;-). Agents reporting lots of FHB activity in Regents Park...and once the roadworks are finished it will become more and more popular....

 

Does this mean that Logan wont be too badly affected by tighter lending to investors?

 

It depends on which parts of Logan you are investing in and the demographics. The nicer areas who are attracting FHB with higher than average disposable incomes will be less impacted (lower ratio of income to price=better serviceability and borrowing capacity)... but the main issue is the doom and gloom in the media which is reducing buyer numbers. However, with a strong economy that will eventually clear and the better areas will continue to grow slowly but surely

 

Just spoke to an agent and he reckons Logan central has pulled back 5% in the last quarter,
and the surrounding areas have surprisingly virtually stayed stagnant
and its not improving remotely

 

Short term the growth will be little probably in most markets. Lending is the killing factor at the moment. Either way if you bought in Logan right its costing you nothing to hold the properties + you still gaining from depreciation etc....

Long term population growth for Brisbane is going to work in all our favor. Close to 500,000 people by 2030 just in Logan council alone. Ipswich also close to 500,000 people, Moreton Bay around 550,000, Brisbane 1.3 million. Total population for Brisbane between 4 and 4.5 million. These are based on 2010 estimates and numbers I had sitting in my research folder few years ago its probably a lot more now going by the exponential growth experienced recently.

Dont worry you'll make money.

 

I still maintain Logan Central, Woodridge, Kingston, part of Slacks Creek will be the slowest to take off. First step of gentrification is owner occupier appeal - it will just take these suburbs that much longer to change than many other quieter family friendly perceived suburbs in the Logan area. That said, money can be made anywhere even if you bought on the worst street/worst suburb - comes down to how much you pay, what the cashflow is and what potential it has at the end of the day.

 

Spent the past 2 weeks living in Logan and checking out properties.

Market has definitely dipped, very few buyers out and about. Spent Saturday going through open homes, and only one property in Slacks Creek (between Park & Paradise Rd) had quite a few groups through. Every other property, we were usually the one group.

Good buying out there. Picked up 2 more properties, and getting prices better now than some of properties I bought in 2014. Renovated 3/1/1 in Kingston for $235,000 and 4/2/2 Brick & Tile in Crestmead for $325,000. Both on 600 sqm with not much to do & will be neutral/slightly positive from Day 1.

Vacant blocks of land (600sqm) are still selling for $230,000 - $240,000 so seeing good value on existing properties.

Cheers,
Michael

 

that is phenoemonal value,
thats like 4 -5 years ago prices

 

Is anyone successfully sub dividing blocks in marsden, crestmead, regents park or boronia heights areas?

Buy house on big block, subdivide and sell block and house? 400 to 500 metre blocks seem to sell for around 200k in marsden.

Might work for corner blocks?

 

Quick Domain search for Kingston - $300k rented at $340pw, seems to good to be true!
15 Tecoma Street, Kingston QLD 4114 - House For Sale | Domain

 

That's not especially extraordinary for Logan, 5.9% gross.

 

Is Logan more of a yield play over capital growth?

 

Absolutely. There are some areas that have seen great capital growth in the past few years, but as a general rule Logan is a 'safe' strategy, with strong yields balancing CG gains that are expected to be lower than other options (e.g. Brisbane middle ring).

 

With high Logan council rates, this will definitely get you in negative-geared territory. A weatherboard house with very sloppy land at the back won’t do anything good, even if it is 720sqm.

 

Comparables in Srathpine are at least 80/100k more with yield being around 2% less. It depends what you are looking for. Considering RE is a long term game, honestly I prefer to buy properties CF+ from day one, I want my assets to work for me not the other way around.