QLD My house in Logan didn't do so well, why?

Hello, my buyers agent got in touch with me as a 1-yr follow up since buying a 3 bedroom house in Eagleby. It's my first IP.

I'm hoping for some insights from so many experienced investors here to get a sense of how my property is going.

- I bought it for $285k in Jan 2017
- I was told the market value was 300k though knew the figure was a tad inflated, and I thought the house was on the rundown/ugly side, though very liveable and functional
- bank valuation was 285k for the loan

- 3bed average atm for eagleby is 300k according to realestate.com.au
- the realestate.com.au estimates for my property coming in to my inbox had always been lower and rated as "very confident" (Do you know what the estimate is based on? Why that might be? I can tell you more detail if needed)
- my BA sent me a valuation from CoreLogic with the email subject "some positive news" but it valued the property at 292k, suggesting little change, if any

I know these things fluctuate and it's only been less than a year, but within this one year it's been consistently lagging behind. So I emailed him asking if he knew why that might be. And his reply is "the takeaway from the data is that the market has moved 10% which is above forecast" and that it will continue to gain value.

I asked about my specific property because that's what the follow up is for? Am I missing something?
And in the event that he's bs'ing to make anything sound positive, do you guys have any further thoughts on why it might be doing sluggishly?

Thank you!! Happy to provide more detail if needed.

 

Brisbane has been mixed. Its only been a year. Be patient.

 

How would 10-15k matter much?
Did you checked the sales in same street?
Try noting the sales and then figure out based on market movement.

May be you bought by overpaying 5-10k. That would make out for the difference or you paid 3-5k less initially which would have indicated that you were less than the median and that would have been the fair value of the property.

Regards

 

Thank you! 5-10k doesn't matter much, but I was just confused by the email exchange portraying it as good news. I may have overpaid by 5k as we offered extra to get it and the competition was fierce in Dec 2016. I have to admit I was a bewildered newbie trying to sign things in an hour lol.

Thanks.

 

Take desktop valuations with a grain of salt. They can be off quite a bit. There hasn’t been heaps of movement in the area yet and even one year at 10% is hard to notice sometimes.

Similar houses will still be selling on or just above what you paid. Wait for a few years of good growth and hopefully there will be nothing available to buy close to what you paid.

 

you should probably invest in shares if you want absolute transparency on asset prices in short time periods.

 

Haha. You property folks have a different lingo I'm still getting used to! Where everything is hyped and transparency doesn't come in the form of an honest friendly conversation. No criticism or anything, it's just a different world for me

 

Thank you everyone
It is as I thought and makes sense

 

Given the gains of the Sydney market during the same time or even Bitcoin I can see why you'd be expecting more growth.... but it isn't always about what is booming!

We also own in Eagleby, and one of those properties was bought at the height of the QLD market so it has done little to nothing based on purchase price. We are optimistic that there is growth ahead and whilst I don't have the data on hand at the moment there is some evidence to suggest things in the area are picking up. Play the long game!

 

When agents tend to talk in circles, you jump-off the merry-go-round before you go round the bend.

 

Look at it from a different angle,depending on their research and the numbers mirrored compared to other property at least the value is still the same and may well stay the same for years in terms of dollar amount ..Plus Logan is not part of the BCC footprint and one of the far-reaching implications when you buy outside the footprint..

 

Another Noob after 12 month investment expecting 50% growth. LMFAO

You want quick money play the stock market/bitcoin/crypto or something along those lines. You want a solid investment over a long period of time with good returns stick to property.

If every dick joe and harry made 50% or more every 12 months purely buying a house and holding dont you think 99% of the population would be millionaires now?

Common mate set your expectations appropriately and you will do fine over 5-10 years

 

Hi Mate
We have 5 IP's in that area. In general you buy for cashflow & 5-7 years (Long Term) horizon. You also need to buy really really well.

We bought all high set
for 170 4 yrs back
1 - 3yrs back for 145 (needed reno 15k)
2 more 2 yrs back 215 + 200 (reno of 20k)
1 early this year for 275 (at Auction)

Just land banking, might get some ancillary units going again for cashflow.

Most of them would now be in 280 - 300 bracket.

 

I didn't want quick money

But is it so normal to you to portray average non-news as good news, to inflate initial property value by 10+k for a cheap one and not be honest about it even on review, and to avoid a direct Q about the specific property? I would have been fine for somebody, who knows I'm a newbie, to tell me yeah your property hasn't moved but that's normal and fine. It wouldn't be less than what I expected.

But the language has this constant layer of inflating the truth. That's what I'm asking about. And is so normal apparently. Go easy on my simple little mind ok?

 

I have also made money on my Logan properties. How do I know? Because I took out equity on them from CBA. Thats how.

If you buy right and in the correct area's of Logan you WILL make money. There are suburbs in Logan fetching well into the $600k+ bracket quite easily.

 

Why are you believing this person? If you want a true reflection go pay for a proper valuation from a bank. Core logic is one "single" source and its purely a guesstimate. Its all online valuations only which are not accurate most of the time.

Also as mentioned by many on here already DO NOT believe everything a BA says or recommends. Your own due diligence is utmost important for your own investment safety. Like I always say you are the only person in the entire planet with your own interests at heart.

To be completely honest with you I dont give a damn if you make 1 million or lose 1 million. Doesnt affect me a single bit - and that is the position of most BAs after the sale is complete.

 

People have vested interests. People often try and justify their own investments or their advice on particular investments and can use inflated language. It’s not unusual. And it’s not hard to imagine a BA doing so. In the end you have to marry up the numbers coming out and what is going on the ground. What are similar properties selling for? Numbers online lag reality, however the reality may be that not much is going on. What type of stock is selling? If you have a year + of flat prices month to month, that’s prob telling you something.

I’m sure that when you bought, like many others here, saw/see the potential Logan has. For many it’s an area plays a specific part in portfolio building towards whatever their end goals are. I suspect you have a decent yield, which is part of the attraction. Can you add value to the property? Maybe you can force some equity growth to go again? I don’t know what your goals are so it’d depend on that.

 

This is a newsletter from a buyers agent, so of course it is going to put a positive spin on any news. Clearly intended to hopefully encourage you to buy more.

Do your own research.

One year is probably not even long enough to absorb buying costs, particularly with buyers agent fees involved.

As long as the property is ticking along and rented consistently, you will just have to wait for time to show growth. Real estate should be looked at with at least a 10 year time frame.
Marg

 

you need to have a long term view on it hang in there for 10 yrs
after a while get a proper independent valuation done on the property