Another Logan Thread

[jmillar]

I'm ready to buy IP #3 and #4 (2 townhouses in Logan region), and I've been speaking to agents and doing some research on the area.

I've been offered 2 townhouses in Eagleby and Beenleigh for $160k purchase price, $260/wk rent (off market deals) which seems like better value than anything else I can find at present. I'm trying to get my head around the socio economic status and the location of each of the Logan areas...

From what I gather, Beenleigh and Eagleby are about a 6/10 for demographics but aren't as well located as Waterford West and Woodridge, however council has plans to make Beenleigh a Principal Activity Centre.

Waterford West seems to be the leader in terms of location and demographics (8/10 in each), while Woodridge seems to be the lowest socio economic area, with slightly cheaper prices and lower rents.

Not sure about Kingston, Logan Central etc.

Any input on the above would be appreciated. Also I've noticed that you need to be wary of the flood zones and strata fees can vary a lot.

I'll be visiting QLD in 2-3 weeks to do some ground work myself but seeing as properties are starting to sell quicker and quicker, I'd like to secure 2 properties before this if possible.

Cheers
John

 

[Vanillascent]

I live on the northside of Brisbane and am not overly familiar with the market in that area, however I am familiar with Logan Central, and I would say that sounds like way too good a deal for that area generally. I would be cautious with this and do some very thorough research.

 

[norwoodman]

Check your strata and rates for units in Logan - the numbers may give you a shock in some of the unit complexes.

 

[mikezen]

I'm ready to buy IP #3 and #4 (2 townhouses in Logan region), and I've been speaking to agents and doing some research on the area.

I've been offered 2 townhouses in Eagleby and Beenleigh for $160k purchase price, $260/wk rent (off market deals) which seems like better value than anything else I can find at present. I'm trying to get my head around the socio economic status and the location of each of the Logan areas...

From what I gather, Beenleigh and Eagleby are about a 6/10 for demographics but aren't as well located as Waterford West and Woodridge, however council has plans to make Beenleigh a Principal Activity Centre.

Waterford West seems to be the leader in terms of location and demographics (8/10 in each), while Woodridge seems to be the lowest socio economic area, with slightly cheaper prices and lower rents.

Not sure about Kingston, Logan Central etc.

Any input on the above would be appreciated. Also I've noticed that you need to be wary of the flood zones and strata fees can vary a lot.

I'll be visiting QLD in 2-3 weeks to do some ground work myself but seeing as properties are starting to sell quicker and quicker, I'd like to secure 2 properties before this if possible.

Cheers
John

I know, live and invest in these areas

Personally I would be looking for something with some land content to subdivide as close in to Beenleigh cbd as possible as this is where I reckon the cream will be in the years to come, failing that maybe something up in the west of Beenleigh on the hill, or south towards mt warren park,

http://www.realestate.com.au/116243767

Edens landing is probably the most desirable suburb in this area followed by Mt Warren park which is closer to the highway and when demands start people may flock here first, holmesview up on the hill is actually ok however there is a few handl develoments starting which will aid to supply, bethania not so bad- is popular with retirees and considered safer than most other suburbs around this area. Some parts of Waterford have been generified however waterford west has some really rough streets so be careful where u choose if you purchase there

Wouldn't go anywhere near eaglby, when u come up you will see why I would also be putting woodridge in here as well but that's just my opinion

I also don't believe these areas are heating up yet, if your hearing this from agents I'd probably be questioning that, however Happy to be proven wrong

Talk to a good pm when you come up so you know what streets to avoid in what areas
That's all I can think of for now good luck

 

[INVSTOR]

I know, live and invest in these areas

Personally I would be looking for something with some land content to subdivide as close in to Beenleigh cbd as possible as this is where I reckon the cream will be in the years to come, failing that maybe something up in the west of Beenleigh on the hill, or south towards mt warren park,

http://www.realestate.com.au/116243767

Edens landing is probably the most desirable suburb in this area followed by Mt Warren park which is closer to the highway and when demands start people may flock here first, holmesview up on the hill is actually ok however there is a few handl develoments starting which will aid to supply, bethania not so bad- is popular with retirees and considered safer than most other suburbs around this area. Some parts of Waterford have been generified however waterford west has some really rough streets so be careful where u choose if you purchase there

Wouldn't go anywhere near eaglby, when u come up you will see why I would also be putting woodridge in here as well but that's just my opinion

I also don't believe these areas are heating up yet, if your hearing this from agents I'd probably be questioning that, however Happy to be proven wrong

Talk to a good pm when you come up so you know what streets to avoid in what areas
That's all I can think of for now good luck

That's pretty much my thoughts also! I have had a property at Waterford for about 9 years. All excellent tenants, close to 100% occupancy.

 

[RetireRich101]

For a $260/wk on a $160k purchase, that is 8.5%. With a low entry price tag and high return astute investor find it hard to resist to close in on the gap.
If we assume no rental growth and bring this down to 6.5% still a good return, it would mean the property needs to go to $210k, a 30% increase.

 

[Moneyman_85]

im about to settle on a 'villa' 250m2 land, $185K on 280 rent

I think the logan, kingston, woodridge ones are at least $170K + now

John.

 

[beachside]

As said previously, throw in your strata fees and a good RR starts to look ordinary.

 

[Moneyman_85]

My strata is $400 p/ year, is that normal lol

 

[mikezen]

That's pretty much my thoughts also! I have had a property at Waterford for about 9 years. All excellent tenants, close to 100% occupancy.

Yes i always had great tenants as well, fingers crossed,

I think this will be a interesting part of SEQ to watch in the years to come

 

[jmillar]

My strata is $400 p/ year, is that normal lol

I saw another one at $400/yr the other day and had to double take. I don't understand how this even pays for insurance, never mind all the other common outgoings! Must be privately managed.

As said previously, throw in your strata fees and a good RR starts to look ordinary.

Strata is $260/qtr and $380/qtr on them. I think this is reasonable, seeing as I pay $610 for Penrith and $500 for Mt Druitt.

Council/water seems to be expensive though. One of them was $930 last quarter ($540 usage), while the other one was $700 last quarter ($300 usage). Is this high? Can I charge my tenants for usage in QLD?

 

[Moneyman_85]

Well Insurance is $400 per year, so it's really $800 for 'strata'

Better than $600 per quarter, no pool or tennis court in the complex

I saw you can charge if you have a 3 star and above water rating (QLD)

Should be the same for NSW you would think

John

 

[Holmes2012]

Target market

Buy where your target market resides. Long term hold strategy means u invest in Logan where the renters live, rather than buy a trophy property at Norman Park and screw yourself with negative gearing.

 

[devank]

Edens landing is probably the most desirable suburb in this area followed by Mt Warren park

That is the conclusion I reached after doing a bit of research in 2011. I think I jumped in a bit early. I was attracted by the amount of money invested in these areas.

 

[mikezen]

That is the conclusion I reached after doing a bit of research in 2011. I think I jumped in a bit early. I was attracted by the amount of money invested in these areas.

Yeah I hear you, but it's not easy picking the bottom of the
Market as you know

There is still a lot planned and happening for the area. I also think that the vast number of people that commute from the goldy to Brissie every day will eventually start to get priced out of the Northern GC market and in turn will start to look more seriously in this middle corridor to reside, which should encourage growth for many years to come, speculation of course...

My agent was telling me the Last time the Gold Coast job market tanked everyone looked to Brissie for work and of course demand kicked in and many rents increased in these suburbs as it was where everyone wanted to live

The reason I like living here is it takes me only 30 mins to get to work in the cbd in the morning and then only 30 min to drive to main beach On the goldy for a surf,

 

[zimby]

Yeah I hear you, but it's not easy picking the bottom of the
Market as you know

There is still a lot planned and happening for the area. I also think that the vast number of people that commute from the goldy to Brissie every day will eventually start to get priced out of the Northern GC market and in turn will start to look more seriously in this middle corridor to reside, which should encourage growth for many years to come, speculation of course...

My agent was telling me the Last time the Gold Coast job market tanked everyone looked to Brissie for work and of course demand kicked in and many rents increased in these suburbs as it was where everyone wanted to live

The reason I like living here is it takes me only 30 mins to get to work in the cbd in the morning and then only 30 min to drive to main beach On the goldy for a surf,

Yea, but what's the average life expectancy in Logan

 

[devank]

Yea, but what's the average life expectancy in Logan

That can change over time. Higher prices push in the right direction.

 

[Beanie Girl]

Strata is $260/qtr and $380/qtr on them. I think this is reasonable, seeing as I pay $610 for Penrith and $500 for Mt Druitt.

Council/water seems to be expensive though. One of them was $930 last quarter ($540 usage), while the other one was $700 last quarter ($300 usage). Is this high? Can I charge my tenants for usage in QLD?

Jmillar, do you reckon the strata + council/water rates could be a bit on the high side for a 2 bedroom unit in Eagleby or Beenleigh that costs 160K and yields rent of 260 per week?

According to my calculations, based on your figures above:

IP1
Strata per year: 260 X 4 = 1040
Council/water rates: $930 X 4 = 3720
Total: 4760 (minus a possible 540 X 4 = 2160 for water consumption/usage)

IP2
Strata per year: 380 X 4 = 1520
Council/water rates: 700 X 4 = 2800
Total: 4320 (minus a possible 300 X 4 = 1200 for water consumption/usage)

As for who pays the water consumption charges, you have to ask the following questions:

1. Is the entire complex of units on 1 water meter? (rare but it happens esp if the complex is small like 5-6 units). If the entire complex is on 1 meter, then the entire water bill gets divided by the number of units in the complex equally. Entirely possible that some units have more people living in them, hence higher water consumption.
2. Does each unit have its own separate water meter?
3. In general, if the property is above the 3.5 Star water rating the tenant pays the full water consumption. I think this applies to units or houses.

I have paid rent for units in Melbourne where the owner pays all the water/electricity usage because there was only 1 water meter and 1 electricity meter for 5 'villa' units.

Besides strata, council, fixed water/sewerage charges or services, you have to factor in the cost of landlord insurance to indemnify yourself for liability for incidents that happen WITHIN the unit/townhouse, malicious damage, accidental damage, unoccupied etc. I believe strata charges/levies only cover liability for public areas of the complex. Check with your agent/property manager.

 

[Northy85]

trouble getting tenants

hey guys, I've been following SS for a few years now and finally thought I'd get involved.

I have recently bought a fully fenced 3/1/3 house with rear access down in Slacks Creek on a 950m2 block with a huge shed out the back on a slab. I spent a bit off money getting new flooring, paint, curtains, fans and general tidy ups however after 3.5 weeks, still no tenants. asking rent was probably a little high at the start with 370pw, however its now down to 350 and still no rental applications.

It's in the better part of slacks creek, just off the service road. Has anyone else had troubles in this area getting tenants? I have heard through a couple of REA that a lot of the older tenants are purchasing homes in the area because it became cheaper to do so.

 

[FelixL]

I think the rent is still a bit on the high side. For $300-310 there are lots of choices out there. Is your property worth the extr 15% rent?