QLD Logan properties "Buyer beware"

Hi all,

I know there's plenty of interest in Logan properties at the moment, I own one myself. Thought I'd share some information with you all on an inspection I did in Kingston today, and an issue which is very common in the area. I'm not trying to persuade anyone to not buy in Logan in actually fact I'm looking myself, just take extra care and do your DD before jumping in. I spoke to the agent and apparently there are some offers on the table without any inspections, which is quite scary. I'm not going to disclose the address for privacy issues, however it's advertised as legal height when it isn't. The house has been renovated and looks fantastic in the photos, however it's a insurance nightmare and accident waiting to happen. I doubt any of the renovations done are legal, including the downstairs component, and back deck. There are wires exposed everywhere, dodgy tiling and painting, there's even ceiling fans installed just above head height. Please be aware with any Logan properties, as there lots of unapproved council structures and dodgy renovations going on.

 

Good post - another learning from our end - do not rely only on a pest and building inspection - the builders do NOT assess the electrical systems (even a home with "FUSE" written on garage wall in chalk without a distribution covered box accompanied with antiquated illegal wiring evident did not prompt the builder to inform the purchaser to have a sparky have a look at the home resulting in a bill of $3k for rewiring thereby the purchaser did not have information to be able to negotiate a reduced purchase price to cover costs)...what may pass as just ok for an owner occupier is not ok legally for a business arrangement such as tenanting a property...

 

Yep, can't rely on sales agents nor their photoshopped photos. Get a local to go take a look.

 

The scary thing is it has multiple offers unsighted, some from Melbourne and Sydney. I know there is a lot of hype in Logan at the moment, just don't go rushing in for the sake of "getting in" then regretting it later.

 

Last one i purchased i did that, offered sight unseen. Ticked all the boxes, fully renovated property with further development potential later at a good price. 27k less than the last person paid.

If i had of waited to fly up it would have been gone so took the gamble and put $500 deposit down. Worked out good, property was better than expected. It's good putting in an offer ahead because you can see if the vendor is keen before you bother flying up.

 

Congratulations on the buy was it in Logan? There's certainly some good buys in Logan at the moment and the market is certainly heating up.

 

Yep was in Logan.

 

I have a feeling that it's already too late to get into Logan.

 

No way, probably harder than it was a year or two ago but still good deals to be done. A lot of prices still lower than 2010 peaks. Can still hit yields over 6%.

 

Why is there privacy issues, can't you post the link to the advertisement?

 

I was gonna say the same thing.. I think a link to the realestate.com.au ad is not really violating privacy issues is it?

 

I have used:
1. Subject to building and pest inspection
2. Subject to due diligence clause - agents don't tend to like this one, but if something terribly unforeseen happens it's a good clause to.

Even with the satisfactory b&p there are always small issues that come up.

Investors don't want to spend the cash up front on a b&p, integrate into the contract, if vendor has nothing to hide they they will generally accept offer.

 

I deal with a few agents on the South side and have a good rapport with them. I just don't think it's professional conduct to do that. This post was a warning to potential buyers of a prevalent problem in the Logan area.

 

A good reason to inspect the properties in person or at least get someone you trust to go through them.

Also have finance and B&P clauses on your offer.

Cheers,
Michael

 

I think I know which one. If I'm not mistaken this property actually looks pretty impressive fr the photos. But it's been on the market for a little whIle. Was surprised to see it not snapped up yet. Does that sound about right Sean?

 

@seanbrissy Can I have a crack and name the agent???

 

Also no harm in getting electrical safety inspection done by an electrician if B&P indicates issues ( although if renovated or poorly maintained best to have an inspection done anyway ).

I also had a plumber check the gas lines.

In both cases, make sure you get safety certificates. You have done what is reasonable to identify safety issues. Fix any safety issues identified in a manner that eliminates the hazard.

 

Hi York,
PM me, I'd prefer not to mention agents names on public forums.

 

If you use BA, do they usually look at these issues for you?

 

B&P report and a trusted third party to inspect a property is essential to weed out any major structural issues, but its important to realize that the best deals are usually taken within a day or 2, if not hours.

Sometimes you just have to factor potential problems as a risk and include a buffer in your offer to have these fixed yourself - does not mean the deal is a dud.

Ask yourself, if its a major concern forking up to $5000 for potential teething issues, is the deal as a whole worth it in the first place?

That said, if a property is advertised as legal height and the reality was false, I am sure you'd have no problems pulling out of the sale legally at no cost to you (but plenty for the agent)