QLD Logan Property 2016

Rochedale South Property Market, House Prices & Suburb Profile

Loganlea Property Market, House Prices & Suburb Profile

Yep, can't argue with that.

Meadowbrook is a happy medium

Meadowbrook Property Market, House Prices & Suburb Profile

 

Both Rochedale South and Meadowbrook...and Regents Park are sought after by local *****s in Brissie as places they would live.

Not many Brisbanite would consider Kingston/Woodridge...they would consider these suburbs the equivalent to the Bronx....so social stigma is so bad...which also affects pricing.

Sure they might be the darling of the moment...but what happens when the Southerners lose interest or worse still banks' lending criteria for loans change.

 

Hi Sash,

I don't look at those stats much myself either, mainly because it's lagged data.

The prices were pretty stable earlier this year, which is probably where those numbers are coming from. Prior to the election and after the interest rate hike, the overall market was quite soft. Some areas which defied this were 1,500 sqm splitter blocks in Marsden with two street frontages, close to the shopping center. These saw really good growth.

Here is an example, 7 Yale St Marsden QLD 4132, previous owners bought very well in 2015 for $312,000 in August 2015. Subdivided and trying to sell the front house for $349,000 and the back block for $250,000. Asking way too much, but even then been close a few times to selling. Compare that to what's on the market for similar properties, and you are well into the $400,000s.

Also dual occupancy highsets in Kingston, Woodridge & Logan Central have gone up. Starting to ask above $350,000 for anything decent, mainly investor driven.

On Loganlea, the zoning plays a big part. If the property is zoned medium density, these have moved but areas outside haven't so much.

What I am trying to say is Logan Central, Kingston, Woodridge, Crestmead. Marsden & Loganlea are different markets and have certain pockets within each.

Since September though, prices are starting to move. There is a distinct lack of stock, and asking prices have gone up and another change has been more owner occupiers coming into the market. So give it a few months and you will see a shift in those reported numbers.

In terms of future growth, I don't see anything amazing...its starting to get close to that point where the numbers don't work. You don't want to be buying at 5% in Logan with the high holding costs. The key is buying well, making money on the way in & good rental return. If you don't get those, then might as well buy elsewhere with greater capital growth potential.

Cheers,
Michael

 

Thanks Mike...I was beginning to develop nerdy tendencies from all that analysis of stats...I was also starting to over share my thoughts....so your email has relieved me of that and provides great context. I was beginning to feel like the runt at the trough.....

So in summary of the Logan market:

1. Your gains are buying well....Simon Loo said this too...no everything makes money
2. Investor driven...so timing to taking profits is important..not long term buy and holds
3. Property with plenty of land with development or sub-division potential
4. Cash flow market....not as good for capital gain..

Good stuff...I think your post is spot on.....

 

@Michael_X,

I am reading your post and in your own word as:

1. Since September though, prices are starting to move
2. There is a distinct lack of stock, and asking prices have gone up
3. another change has been more owner occupiers coming into the market
4. So give it a few months and you will see a shift in those reported numbers

Not sure how other read it though....

Regarding below, I agree to some degree.

Some Logan suburbs have increase 20% in the 2 years. It is above most Brisbane suburbs for growth. Most of us purchased well, MMV, probably 5-10% below market. We never factored these BMV in our discussion for capital growth, unlike some other keep bragging on "I purchased for $301k last year and is now worth $380k"... We don't claim Logan had extraordinary growth in the last 2 years... just moderate 10% per annum in the last 2 years...

I agree with purchase entry stock in Logan with below 5% yield without any uplift, add value, development potential is not encouraged. I also agree with you that "the key is buying well, making money on the way in & good rental return"... this applies to everywhere, not just Logan.

Regarding "In terms of future growth, I don't see anything amazing...its starting to get close to that point where the numbers don't work"...

• Although your opinion could be correct, we can't really be sure as it is a speculation and prediction... we wont know until this happens..
• But when we look at Mount Druitt for example, the current yield is under 4%. When the Sydney boom 2013-2016, people buying there they didn't care so much about the yield.. they were all blinded by the fear of missing out and which suburb they can afford..
• Not saying Brisbane or Logan will boom anytime, but if Brisbane does boom, I am of certain that Logan will not be left out. I am on the opinion that it will do better than rest of Brisbane....
  
• Not sure why people spend so much time discussing which suburbs is better what not. In Sydney 2013-2016, most suburbs increase 50-80% during the boom.... I am happy for either 50% or 80% as long as I didn't buy in Perth at that time.

While we speaking of stats, I think you're correct that it is picking up some interest after the election, so having your boots on the ground helps alot... You aren't the only one that is telling me about Logan...I am also hearing about more PPoR activities in the area by PM

Let's compare Logan and some random suburbs in Brisbane...shall we?.

Look at 4114 (Logan Central/Kingston/Woodridge) on House Asking price..ALL GREEN


OMG.. look Clontarf/Margate/Woody Point..ALL RED.. And look at the 12mo and 3 years growth, such dismal.
(Must be a good time to buy in there now, seeing it is so depressed market. just like Perth, but I am just a STAT man, why would I know..

 

100% agree...yeah I know who you are talking...silly old duffer...best put on ignore.

Perth, Clontarf, Margate, Woody points are depressed markets....the stats below provided by you provide credence...

I just don't get some people...the hide of them......they claim to have lot of properties...they keep buying..I just don't know how they do it...given they keep making such bad decisions.

Anyway congratulations on your recent Penrith sale and profit of 200k. Great Success.

Hey did you read the Woy Woy post...apparently..some bloke turned his 261k in 2010.....to 620k after a quick reno. Do ya think that is possible or is that rubbish...what do your stats say?

 

All of sydney seems to be at 3-4%

Can i request a graph of my druitt yield with growth over lay and a 4114 graph to?

Or how does one "graph" ?

 

@sash @Michael_X
If the outlook for logan suburbs isn't looking that great would selling to realise gains be a reasonable option?

I complete a reno on a Bethania property next week, It's on 720sqm and I've prepared the block to accommodate a granny flat at the rear, and put a bucket load of work into recladding the house, new bathroom etc.
I like the location it's in as a holding property but tempted to look at better growth options.
Purchased for $250k, could probably sell for $330k at best or rental $330 pw.
Can't do an equity pull due to current work situation, can borrow private funds for gf build.

I have another one in the suburb to reno so if I sold to get into another market I would still have coverage in Logan.

What are your thoughts?

 

I understand there are more gains to come just not hard and fast

 

One thing i can never understand is the build price versus selling price disconnect...

Say for a standard 3 or 4 bedder around the 280-300K mark...

Build price whether it is in Sydney or Brisbane what? 250 mark? and that's cheap side..

Barring new vs old comparisons.....So what does that imply the land value of these Logan suburbs? ??

And that was what puzzled me during those cheap Mt Druitt heydays...i was offered 180K for a cheap 3bedroom house...i should have grabbed 10 of that ...young(ish) then haha! plus the owner had 9 cats...phew!

 

I am not saying the outlook isn't great. If you can buy well, then I would still be investing there. For me, if there is somewhere else you can find 6-7% rental return within 25-30km of a CBD then would happily invest there.

Crunch the numbers and see what gets you closer to your end goal. Factor in renovation, holding, entry & exist costs and capital gains tax. Better growth options are speculative so it is a gamble.

I am holding all my Logan stock for another cycle, doesn't cost me anything to hold so wait for the next tide to rise.

Cheers,
Michael

 

Those were expensive cats ..each one cost me at least 30k I reckon!

 

Hi
Can someone recommend me a Property manager in Logan area?
My patience is really wearing thin with my present one..and i am normally quite a patient person..now to light a fire and send that "Rocket" manager of mine to the moon ...(guess who i am talking about!)

 

T

They are all crap... the end.

 

Thoughts on granny flats?

 

What's your constraining resource in property investing - is it servicing or equity?

If it's equity, I wouldn't be building granny flats. They generally don't value well. Say you put in $120,000, you might only get back $60,000 on the revaluation.

If it's servicing and you need additional rent then could be a good option.

So for example, someone going into retirement or consolidation phase and want to turn excess equity into cash flow it's great. If someone is accumulating I wouldn't suggest it.

Cheers,
Michael

 

Thanks Michael.
My constraint will always be servicing hence the desire to increase yields. I like things to pay themselves off too.
I'm in accumulation phase but being limited by servicing I need to be more selective about what I hold.
I'm leaning towards just sitting on this one.

 

Have finance much of these in Logan?
In Sydney west few years ago when GF was a topic, it was like 100k spent for a 70-80k bank Val as there were few comparables. However when there are more comparables, this wasn't such an issue at least in the last 18-24 mo I am aware of in Sydney west.

Say your purchase 300k and put a GF for 120k, I would certainly dispute if it Val comes back as 360k, as the highset dual income are coming at 350k mark...

If bank Val of 360k and you're getting 600 wk rent, yield is 8.6% plus depreciation

 

We are all here going round and round talking about Logan granny flats...what i want to know is anyone here on this forum actually BUILT and RENTED out? and real numbers plus thots would be much appreciated

(as granny flats in Western Sydney is DIFFERENT to granny flats in Logan)

 

I am not doing the GF(annexed unit), but the strata titled option...so I have the option to sell of the old/existing house or new build..
The infra fee is not as expensive as we initially thought, if we go for the dual occ split title...probably $20k for 3bed, about $15k for 2 bed...