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QLD Logan- what are the negatives

Discussion in 'Where to Buy' started by New2prop, 21st Aug, 2016.

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  1. New2prop

    New2prop Well-Known Member

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    I am looking at buying an IP in Logan area. Can you please share all the reasons why I shouldn't invest here - crime, tenant quality, property conditions, over priced, low CG etc.?

    (Don't plan to start another Logan thread but I didn't want this question to be part of the hype thread. Just want to get the facts before investing.)

    Thanks
     
  2. RetireRich101

    RetireRich101 Well-Known Member

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    the average yield has came down to 5%, which is comparable to most SE QLD brisbane suburb yields.
     
  3. Sonyad

    Sonyad Member

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    Hi All,

    Logan in my research and data collection is a minefield and too risky to invest for margin growth

    Highways enclose the sourced area and the other suburbs over the other side, Mackenzie and spring wood have a nicer demographic on the other side of the highway being brought by mainly Asians -see council information.

    3 new development cities known by the local council since 2011 to be built soon close to Logan and its neighboring suburbs will very likely affect future appeal and drive out population growth.
    The new developments will affect pre-existing suburbs in south east Queensland area and there growth, its proven large developments affect growth around it, Prime example the story the new suburb Springfield Lakes. The sprawling Sydney affect wont happen with Logan due to issues with demographic, road enclosure where affluent investors are snubbing the area and the appeal of large developments.
     
    Last edited by a moderator: 19th Jan, 2017
  4. melbournian

    melbournian Well-Known Member

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    Demographics - which can afford to pay more for property - your pick.

    Logan
    upload_2017-1-19_9-36-6.png

    Mt Druitt

    upload_2017-1-19_9-36-58.png
     
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  5. Kelvinator

    Kelvinator Well-Known Member

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  6. bob shovel

    bob shovel Well-Known Member

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  7. melbournian

    melbournian Well-Known Member

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    haha - I have but I didn't keep the pictures.
     
  8. bob shovel

    bob shovel Well-Known Member

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    Camera stolen? :p
    Both photos are probably applicable to each
     
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  9. HUGH72

    HUGH72 Well-Known Member

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    Seeing as we are posting photos devoid of any content or analysis I thought I would join in.:p
    Screenshot_2017-01-19-09-02-01.png

    Or the Logan Hyperdome, otherwise known as the bogan dome
    Screenshot_2017-01-19-09-04-30.png
     
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  10. melbournian

    melbournian Well-Known Member

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    haha yup the apex gang demographics = Logan demographics (some parts)


    upload_2017-1-19_10-47-40.png

    upload_2017-1-19_10-48-52.png
     
  11. Darren

    Darren Well-Known Member

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    Seems people wearing hats are trouble makers.
     
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  12. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    First time I visited Woodridge around train station and Logan Central Plaza. I feel like I am back to Noble Park around the station and Dandenong Plaza. Being priced out from both Noble Park and Dandenong, I wouldn't make the same mistake not investing in those so-called low SES areas. In the end, I am not going to live there. There will be tenants who will be living there and with a gun PM, you should be alright.
     
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  13. melbournian

    melbournian Well-Known Member

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    No question abt noble park and dandenong or even Heidelberg west in Melbourne - but the question is will it replicate or have the same effect like those suburbs when Melbourne become too expensive in some suburbs hence they have to move to suburbs further out. Los Angeles and New Dallas are different, Kuala Lumpur and Singapore are different and so is Logan and Dandendong & Noble Park.

    I visit a lot of rough suburbs in Melbourne looking around houses from the ascot vale housing commissions to the werribee and invest in low SES areas in Melbourne too.
     
  14. Alain

    Alain Member

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    Council rates are expensive compared to Sydney and Melbourne which eat away at your return. You might get low quality tenants.
    Wife and i invested 2 - 3 years ago in Woodridge, we bought a cheap 1 bedroom apartment. We have had two tenants so far and they have been good. We are going to hold it long term

    Poor people have to live somewhere and just because they are poor it doesn't mean they are scum, it sometimes mean they have no choice.
     
  15. boganfromlogan

    boganfromlogan Well-Known Member

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  16. The Gambler

    The Gambler Member

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    Having grown up in Logan I can tell you that it's got some really bad areas. Up and around Logan Central is a bit dodgy. Personally I would never buy there, but somebody has to I guess as there is money to be made. My father has had an IP in Marsden for 20 years now and has never really had any large problems and was lucky to have a really great renter for about 10 years. He kept the rent slightly down deliberately though. Some of my mates still live there and one friend just sold a block of land in Loganlea for about 300k. Again, I think it's crazy money as I know the area and don't want anything to do with it, even though I end up there every year when I head back to Oz. One thing half going for it is location. It's not too far from the city on the freeway barring traffic jams and only a 35-40 min drive to Main beach with decent traffic. Personally I think it's a better location than Ipswich in that regard, but others may disagree.
     
  17. 2FAST4U

    2FAST4U Well-Known Member

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    Yep even Compton LA is expensive these days:D
     
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  18. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    To me, growth is a bonus investing in Logan, that I can't predict. So, as long as I can hold my IPs in Logan with positive-geared money every month, I am happy. I am not sure if that is still possible with Noble Park and Dandenong IPs.
     
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  19. Simon L

    Simon L Investment Property Buyers Agent Business Member

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    People often forget Logan is a massive area around the same size as Brisbane City Council, and within it are many suburbs, many areas, some good, some not as good...

    A good Sydney comparison would be Blacktown City Council. Within it you've got Mount Druitt to Kings Langley - both vastly different in terms of price and demographics, and all the suburbs in between as well.

    A lot of Sydneysiders compare Logan as being the Mount Druitt of QLD, however, a large proportion of my clients are from Sydney and when they travel to Logan, one of the most common things I hear are "oh...its not that bad" and "its actually nicer than Mount Druitt"

    From my experience and what I can see - Logan is not Mount Druitt....its more like Blacktown 15 - 20 years ago when it was hyped with social issues/investors and still had that stigma similar to what a lot of comments on these forums say in relation to Logan today.

    People also argue Bris does not have the supply/demand issues as Sydney and as such, Logan will never do well. Whilst this may have some truth, its important to realize average income and demographics in QLD overall is lower than Sydney and the lifestyle is different also. This is evident with a significant increase of first home buyers in certain parts of Logan very recently which I am often competing with, and surprise surprise - they are there because of affordability.
    Another interesting point I've noticed is there is a larger amount of people in QLD that prefer to live away from the hustle and bustle unlike Sydney/Melb where as close to the CBD is always best.

    With the 3 largest cities in Australia; Sydney, Melbourne and Brisbane - all on the East coast, Logan is pretty much the last hurrah if you want to find a freestanding house on a 600sqm block, 30km odd from the CBD for around $300k giving 6%+ rental yield and personally, I think these opportunities are fast becoming numbered

    As an investor, it doesn't bother me if an area is lower socio economic, has social issues or any negative stigma attached to it. We've seen time and time again that these areas can achieve even more growth than blue chip areas percentage wise, and right now, the numbers still make plenty of sense to take the plunge with minimal risk

    Caveat: Biased investor of Logan :D
     
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  20. Michael_X

    Michael_X Mortgage Broker Business Member

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    This sums it up. If you are only getting 5% rental yield in Logan, I would buy else where...if you can get higher consider Logan.

    Just comes down to numbers.

    For those interested, documentary on City of Logan by Channel 9



    Cheers,
    Michael