QLD What are the better Logan suburbs

Hi All,

I have been toying with the idea of buying a house with a large enough land space to build a granny flat to increase my yield.
I am looking around Brisbane but have noted that you cannot rent a GF to separate parties in Brisbane. I did notice that Moreton Bay, Logan and I think Ipswitch councils do allow this though since I live on the gold coast it makes sense choose Logan as it is closer to home.

I don't want to do this on too cheap a piece of land so was wondering if anyone can provide some insight into which are the better Logan Suburbs? A quick look online tells me that the following suburbs have the highest median house prices in Logan:

• Shailer Park - $550k
• Underwood - $543K
• Rochedale South - $518K
• Daisy Hill - 506K
• Tanah Merah - 450K

I don't know the area well at all and my budget is around $550K.
Any insight or thoughts are greatly appreciated.

 

Better in terms of? If it's demographics - then yes the ones you've listed are decent OO suburbs.

Be mindful these suburbs may not necessary suit the GF strategy - best to talk to someone who understand tenant demand in these areas like @Tom Rivera before pulling the trigger on any deals.

Also keep in mind it may have an implication on the rent for the main dwelling too - just a couple of thoughts to add onto your list of DD

Cheers,
David

 

Personally, I'd ditch the idea and buy alot closer to the cbd with that budget. Investing in Logan Plus the GF outlay risks associated..

I don't see value for outlay and risk. But we're all different investors.

 

Thanks David - Yes I guess I am talking about demographics.
I am still just researching the idea really but good idea to speak to a PM in the are re: rental demand and the effect on the primary property.

Thanks Sackie - what risks are you referring to?

 

Distance from the CBD risk.

Demographic risk.

Lower socioeconomic risk .

Building GF risks .

But in my mind distance is the biggest risk factor for me .

 

Wow $500k to buy a logon investment.

 

Scott, as others have said, don't bother with $500k in Logan in this current market. For that price you can get into much more premium suburbs closer into Brissy.

Properties are literally half those prices just down the road.

For example, I put this property under contract for a client just yesterday (off market). Its in a suburb right next to Tanah Merah;

• $275k
• Walk to station, shops, schools etc
• Front and rear street access to plonk a granny flat on completely separate to main house
• 750sqm land so both front and rear dwelling has complete privacy and yard
• Main house 3 bed brick house and will rent for $330pw conservatively

 

Wow $275k in Tanah Merah! Ring ME next time you find one of those haha! Great up-and-coming suburb.

 

$550k would get you a house on 600sqm within 10km, there's one for sale 500m away from my place north Brisbane, 3-2-2 on the market for $499k - Quiet tidy street, high owner Occ area. Faaaar better options for the $$ in my opinion

 

my wife and I just bought a PPOR.
12klms from CBD
607sqm level block
1960 house with minor reno needed for 455k
Mansfield high catchment.

So bargins to be had.

 

We have done some buying in Meadowbrook and I personally have bought there. There is a significant master plan and plenty of Logan's infrastructure plan centres around this. Just down the road from Tanah Merah and plenty of local amenities. Just be cautious of being too close to high tension power lines to the very north of the suburb. I bought my own place (4,2,2) quite well for $320k in 2013 and probably worth about $450k now.

Meadowbrook Master Plan - Logan City Council

- Andrew

 

Looks like a great yield play there Simon.
Would a GF still rent around the $250 - $300 /week with this property?

I’m considering calcs and options regarding adding a long term cash flow property.

Cheers

 

Distance: It depends mate. If there is a deal with value addition potential, then I wouldn’t bother. Value addition mean Reno, not Granny.

 

Value adding in an area you think won't have decent growth for a long time is a tricky proposition. Not saying it should never be done but imo its a tricky call and depends on a few things.

 

Yes, fair call. Expected growth factor must be there...

 

Most likely $300pw+ due to its own direct street access and completely separated from the main dwelling. Think of it as a brand new 2 bed house.

It will actually end up with more land than what a lot of the current H&L builds have to offer.

 

Hi Simon,
Thanks for that - great result!
From reading the Logan auxiliary unit provisions it seems to indicate can only have one crossover if you intend to rent the GF separately.
Would this property be able to have an approved second (rear) access? It seems like a logical & very good solution but doesn’t appear to be allowed.
Can you elaborate further how this works?
Thanks

 

Hi Craig,

During our due diligence phase I consulted my town planner who has done a number of non complying granny flats. Because of the unique dual street access of this property, he was certain it would be granted approval after an impact assessment nonetheless

Given the cheap purchase price (we actually ended up paying $270k for it after B&P negotiations ), my client was happy to accept the risk of not being able to build another driveway and settle for having a simple gate over the back fence, and the people living in the granny flat can park on the street (plenty outside and always empty)