QLD Logan Logan Logan

Yeah I think the property twins have recently. @MsAli and @monalisa .

 

I bought one house in BCC last year. Then I could not sort out finance because of short term contract works until a few month ago. That is why I was buying late in logan area. The whole BCC and gold cost area rose price maybe average 20% in last two years. So I don't see that logan is in bubble. It is inline with other SEQ areas.

 

From what can you make this claim?

I've not seen anything to suggest the whole BCC has risen even 10% in two years.

Individual properties, sure.

 

Yeah, I understand that. But the lower yield properties will suffer more. You can always buy more with high yield properties than low yield properties. For example, I would rather buy three 6% high yield IPs with $300K each than one 4% yield IP with $500K.

 

and most nightmares!

 

Tourism in Logan? This must be a joke?

 

I don't have crystal ball, mate. But IMHO, I feel confidence on logan, and that is why I bought two in the last a few months. Nathan Birch has bought a lot of properties in low social status area and made handsome money; and many others did it successfully as well.

For people who are buying first one or two IPs, I think it is safer to buy in a suburb within 10KM to the CBD. Those places will have continues CG. I bought my first IP in Ashfield in 2010 and second IP in Enoggera last year. Those two suburbs are in the category. Then I found out I reached the serviceability wall and it becomes very hard to take equity and buy more and more. That's why I changed strategy and started to buy higher yield higher risk area. Higher yield means higher risk. But I think Logan is safer than many other high yield area.

My strategy is buy and hold. So the boom and bust of property market by investors do not help me much. Only the rental increase can help me buy more, not the bubbling price.

 

Tourism in GC. If your family lives in logan, you can still drive to GC for work. The tourism of GC is booming in the next few years.

 

You are right. In March this year, the valuer-general released annual land valuation and most suburb in BCC and GC have land value increased about 9% - 10%. I don't know how the valuation release of next year will be. May be less than 10% rise, or may be more if something great happens later.

Some areas in logan such as Woodridge has got 20% price rice in the last two years, but many other suburbs in logan have moved much less than that. For example, marsden got about 10% rise in last two years. That is inline with BCC and GC areas.

 

Oh. Land value.
Yes, mine went up in a range between about 18% and 38%.

 

Logan Central, 20% increase in last 2 years.

This % increase is similar to most Logan suburbs..

Nothing to brag about, nor nothing to be ashamed of.

 

4114 moved a lot, but areas more south like marsden/crestmead, loganlea, beenleigh, eagleby not that much. Have not got time to get the data. Please check them out if interested.

 

slacks creek has done about 22% from the trough of 2012 till now

 

Though slacks creek is not 4114, but it looks like an adopted son of the 4114 family from a sydneysider's eyes.

 

I know another guy who basicallly bought heaps of cheapies in similar sort of areas and isnt doing as well as Nathan

 

Agree that a property bought in Logan 2 years ago would have see good CG. But Logan still presents good opportunities, if you chose your properties carefully and find a good PM who screens your tenants. Logan still gives you good yield, and the vacancy rate are low. You can also add value and generate equity. The analogy I draw is, just because Telstra shares rose 20% in the last 2 years, it doesn't mean you sell it now and miss on the 60% growth you might get in the next 5 years. Not to mention the cash flow it gives you while you hold it.

 

Absolutely corrrect

However re is cyclical. Each time the cycle length etc depends on a million factors

You know that say in western sydney the chances of 20%pa gains from today onwards is zilch. And that its now at its peak or there abouts and a plateau is inevitable.

In todays market compared to alternatives, logan is up there i agreee. But i wouldnt be expecting a boom there. I think the booms already passed!

 

I don't think the best has passed. Its been one of the focal points over the last 6 months. Sydney is steadying, Brisbane is at the right point in the cycle, rates drops are predicted in the next 12 months.

It all depends on how good you buy.. Can you buy under market value and get an instant small equity buffer, cash flow neutral and scope to improve the property and rental yield..

Im not advocating going and buying the cheapest property in the area, but as investors chase more affordable properties now and in years to come, I think given logan is in a semi metro area it will see modest CG in the future (in what time frame, I don't know)...
I wouldn't say investors have missed the boat as yet.
Although I will qualify that by saying:
If you are lazy and don't dig in and do the hard work to find and screen properties, given the competition to buy in these areas now, then yes you will struggle to find a deal.

 

Not tourism, but people who work in tourism!! I worked at Jupiters casino for a while when first arrived on GC, there were a few who travelled down from Logan to work there... My IP neighbours at Logan load up the car at least once a weekend when the weather is good and head to the GC. And so many times I've spoken to people on the beach and ask where they are from, guess where they say?! Personally I think Logan is well placed to take advantage of both Brisbane and GC.

 

Around 7.5%.
A granny flat was built.
It was approved as relative accommodation initially.

For your information,
original house 310k, $330/week
granny flat 120k, $290/week