My experience buying 4 properties in Logan QLD during 2020

[QUOTE="The entire of Brisbane hasnt moved much since 2015 and its only now that the growth is expediting. Relax and enjoy the ride. Growth will come."[/QUOTE]

Absolutely agree!

 

Agreed! I have used 2 BA's and have purchased 6 properties on my own. The worst purchases I have made have been through BA's...

And I am to blame for that as I was green and didn't do enough research, but all the hype was around these people so assumingly thought they knew what they were doing...

The properties I went with were a lot better than the 7 or so rubbish properties they sent and I declined before purchasing my current properties. I have found it's just a numbers game for the BA's I have used, the more they offload per year, the more of a following they have, the less quality their purchases become...

 

@craig s
While I completely agree with you that properties in the area are duds in yours (and my portfolio) not everyones expectations are same

Logan properties (mine) - No increase in val. Return 3% after all costs (around 10k per year).

Other properties -
Cost around twice Logan properties.
Value increase over 10%pa
Cost of holding was around 3-4%
But yea these have made a lot more money than Logan

Problem:
Not everyone can afford to hold cf- property (at one stage my entire PAYG salary was covering my repayments and I was living of savings)
Some people want to get rick quick and Logan is not one them
Its slow and steady

 

You make a good point here.

I have had friends who bought in high capital growth areas in Sydney and the properties were costing them almost $1,000/mth out of pocket to hold and you don't realise the capital growth unless you cash out. Some of them unfortunately were forced to sell because they couldn't keep holding long-term and in fact less than a full property cycle.

I've been fortunate to have found properties that have a good mix of growth and cashflow which is why I'm a believer of having a balanced portfolio.

I do agree with being patient and holding out for the long-term, that's where all the power of compounding happens

 

Looks like Logan is going through a lot of development, if you thought about selling might be worth holding on a bit longer

Thanks for sharing @thunderstrike888

 

Theres been a lot of development in the area (infrastructure wise) for a while now. Unfortunately I don't think prices are going to go up soon.

It doesn't have the same things going for it the way rough parts of Sydney (eg 2770) or Melbourne did.

Also for every bit of improvement theres a new suburb popping up whether is Jimboomba or Pimpama etc. While a bit outside for a working class family (while maybe on the lower side) having a pretty house in a pretty neighbourhood, with a good chance of working class neighbours is usually going to be > buying an older house in a convenient location with HC across the road or even lower demographics across the rd as neighbours.

On a positive note Crestmead could be considered poor person's Browns Plains/Hillcrest/Heritage Park? So maybe prices may catch up but there will be a difference and not too sure what the difference is now days

 

"If you want to deliver anything to QLD, you have to bring it through Logan"
Looks like there's going to be a whole lot of trucks and congestion on the roads...
Big industrial estates I'd like to stay clear of myself, I'm not sure if it's a good thing..
A good sign for population growth though, but is the area desirable..

 

Places like Calamvale, Algester, Runcorn, Underwood, Springwood, Daisy Hill, Shailer Park and Loganholme are just a few that are only a few minutes drive to these large business hubs. If you want to go cheaper try Woodridge, Slacks Creek, Logan Central and Kingston. The majority of these trucks will travel along the Logan Motorway not local streets.

Is the area desirable? YES.

 

Talking to some locals the other day this has already been happening for a while. Lse t e nants were priced out of the middle part (Brown's plains + regents park) moving affordable rentals out to jimboomba. The whole area has gentrified significantly in the last 5 years and with the very commutable new Logan motorway fhb are moving in, as I posted on another thread prices up 10% in some of these areas from 12 mths ago. The same happened in Deception bay and it is flying now. The high oo fhb areas are the ones that will likely get the best growth with the ones around benefiting from the ripple as well. As they did in the last boom they all will go up significantly as everything else does.

 

There is always haters in every area. I've been in this game so long its just white noise now.

Just believe in your own research and why you decided to buy in the area. If you done your due diligence you'll be fine. Many amateur investors as I've said before want to become millionaires in less than 5 years of buying their first investment. They are dreaming.

RE is a long term game and Logan will be doing absolutely FINE long term. Its already increased significantly as it is and huge demand with < 2% vacancy rates pretty much in every Logan suburb.

Some Logan suburbs already hitting the $700k+ range which is already quite expensive. Someone on a $150k salary borrowing 90% LVR and raising a family would only just be able to service that loan so the sub $500k places are super hot with FHBs and alike.

You all can see the gentrification happening. I'll say it once and say it again 99 out of 100 ppl advising me not to buy in Mt Druitt and St marys when I started. HAHAHA - I'm laughing all the way to the bank because I didnt listen to those fools. Now those guys are buying the same houses for $750-$800k that I paid $200k for.

BLOCK the noise. Most ppl commenting have never stepped in Logan or dont even have a single investment property.

 

If it's all white noise then why the need to keep defending Logan.... Come on, we can all see it's not white noise for you

 

Look I dont know what BA screwed you over but at the end of the day whatever ill issues you've had with tenants or whatever ultimately comes down to your agent you've chosen and the BA you chose. And that ultimately comes down to your own due diligence (which you've already admitted to).

There are 1000s of happy investors in Logan myself being one. In fact I'm looking to grab another few if I can get the finance. If you dont like the area fine - why dont you just sell up and forget the entire thing. Maybe I'll buy your house off you for $100k less than you bought it?

 

Appears you live in Syd,
Have you lived in Logan for a period in the past 5-10 yrs

 

I used to Live in Brisbane for a long time and go up there several times per year to visit friends and family AND to visit all my investment properties up there and shop around for new ones. Obviously I haven't been there in the last 12 months but I plan to go up in next month in March if the borders remain open.

 

Yourself being satisfied, me being unsatisfied.. We can both share our stories.. Common theme here is you dismiss negative opinions as fools doubting you and amateurs not upto your level of investing (all words used in your previous post)
100k less isn't a dint in that salary of yours you never seem to miss a chance to mention about in other threads..
Consider it sold

 

@craig s No point going on about it here man. I understand your pain, I've been in the exact same boat with the same BA in Logan etc. Folks on this thread have dollar signs on their eyes right now and will not get it.

Anyway, just looking to at least make back my stamp duty etc before I offload it onto some eager Logan buyers.

#should've trusted my own research and instincts more

P.s. Where's that 'electroexpert' rolex watch dude who kept boasting about the imaginary millions he made out of Crestmead? He must be standing in line for centrelink right now

 

As I said to my real estate agent. If some fool is paying $50-$100k above the value of the property and expect to make money on it after several years holding they have no one else to blame but themselves.

I bought my Bald Hills Investment for $370k several years ago. The previous owner had paid $410k. The agent advised they wanted at least their money back. I said its not my game to make up for someone's stupidity.

Guess what? I got that house at $370k. Its today valued at > $450k probably close to $500k now the way Bald Hills is going.

It doesnt matter what investment medium you choose. Houses, shares or businesses. If you dont do your due diligence and research and get taken for a ride blame yourself. Recent best example of ppl getting taking for a ride is Gamestop.

I only hope you guys have learnt from that experience. That is more valuable than anything. But a blanket statements about an entire council the size of Logan and saying there is no good investments there is just showing why you guys got taken for a ride in the first place. Simple.

 

My deal in Crestmead was under market value.
I have bought 2 houses in Wendouree, Ballarat late 2018 which have made $100k each and 1 in Corio in late 2017 which have also made $100k on... These areas have such a low vacancy rate there have been articles about homelessness for years.. No Tennant issues, and a good rental return..
Also doing a new build in Geelong which have made $150k on the build..
I also own in Deception Bay..
These are similar price points to Logan, so I have 3 other areas I am comparing to Crestmead..
There are a lot better areas to invest in my experiences..
I may not have been in Logan for a couple of years, but by the looks of it nor have you

 

Nice early gains well done. Only thing to keep in mind is that those areas have gone through a cycle whereas Logan hasn't..I wouldnt be surprised to see at least $100k put on the areas around crestmead in the next few years (the right purchase in surrounding areas has already done 33% in 3 years .

 

Yeh I'm not entirely sure they've been through a cycle just yet.. It is going crazy in both Geelong and Ballarat. I live in Melbourne and a lot of people I know who are from Geelong can't get back as there is no stock and everything is going over reserve.. I'm down there most weekends and the market reminds me of 2012 in Cronulla, Sydney when every inspection I went to had 20 groups through and only got a place through pure luck.. Still some legs left yet.. Major rail upgrade coming to Geelong, 50 minutes to Melbourne CBD. I'd love 100k in Crestmead!