Bathurst or Logan Central

I always like to see figures and follow ups on how things went, so I'm hoping this can add some value to the forum.

Good on you for the update Brady!

I think you will find 2012 and 13 fairly tough times for Logan, 2014 much more of a growth year. So you may have had a little downward run followed but the up if you had purchased there.
 

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In order to wait for capital growth one will need to hold the property.

In order to hold the property there the IP will need to be rented.

for it to be rented, the tenants will need to have jobs.

therefore, having sufficient jobs and infrastructure is crucial.

Without rental income , i see no point in holding.....

so does Bathurst or Logan have better sufficient jobs and infrastructure?
 
In order to wait for capital growth one will need to hold the property.

In order to hold the property there the IP will need to be rented.

for it to be rented, the tenants will need to have jobs.

therefore, having sufficient jobs and infrastructure is crucial.

Without rental income , i see no point in holding.....

so does Bathurst or Logan have better sufficient jobs and infrastructure?

I believe both do.

Bathurst is a very diversed city. I wouldn't invest there if it wasn't. Much like Wagga where I've also invested
 
I've spent the last few days looking at properties in bathurst and orange. Obviously 2 different markets but I learnt a lot. Vacancy rates are a little high in each at the moment, but houses in a central location should rent easily enough. I was a little surprised that yields aren't higher tho.
 
Logan comments - Simon Pressley

Saw this opinion post from Simon Pressley about Logan -
http://www.propertyobserver.com.au/...il&utm_term=0_a523fbfccb-5ef998519b-245480429

Some comments from the observations include:

Demand for accommodation in Logan has been high based on its average annual population growth rate of 2.3% over the last decade - superior to the Australian average of 1.7%. This trend appears to be holding firm.


Other than a spike in building approvals in 2010-11, Logan?s housing supply has been consistent with population demand (I wonder what caused the spike in supply was due to - looks like quite a spike from the graph...).


What Logan lacks most is sufficient local jobs. An unemployment rate of 6.4% is significantly above Brisbane?s 5.1%. According to Census data, of the 300,667 population 123,619 are employed although only 72,745 of these jobs are within Logan themselves.


A largely blue-collar demographic, Logan?s biggest industries are:

Manufacturing ($4.9 billion output per annum),
Rental, hiring and real estate services ($2.4 billion),
Construction ($2.3 billion),
Retail ($1.1 billion), and
Wholesale trade ($1.1 billion).
 
I've been in the Logan market quite closely over the past year and prices have definitely moved. When I first started looking, you could buy highsets for around the $240k mark. Now the same product is pushing $290-300k, so a decent increase over the past year.

In terms of rent these usually rent between $320 to $350 per week, so yields are coming back.

Generally agree with the post above, haven't had any issues with vacancies and the demographic profile have been largely blue-collar workers.
 
Mike, wondering when you were going to show up in this thread and astound us with the prices you bought into and the phenomenal rents you're getting :D
 
Haha, I have my mentor Beanie Girl to thank for this :)

Best yield so far has been $282k purchase price and now renting for $440 per week, bought this for my folks around May last year. Highset, downstairs has toilet/shower and additional room. Renting to one large family. I was a bit skeptical at first with their application as they have 5 kids but 6 months later couldn't be happier. House is tidy, passed all inspection reports, rent always paid on time and they look after the pool themselves!

A great property manager helps.

Most purchases have been around the 6.5-7.5% mark, which you need for Brisbane. The holding costs are higher compared to NSW.
 
Most purchases have been around the 6.5-7.5% mark, which you need for Brisbane. The holding costs are higher compared to NSW.

What sort of holding costs are you referring to which are higher in Brisbane? E.g. is it council rates, management, insurance? I've heard insurance being higher due to the floods but thought that wouldn't be an issue for Logan.

Pardon my newbie questions, I am interested in Logan as a potential area for a first IP purchase
 
I've spent the last few days looking at properties in bathurst and orange. Obviously 2 different markets but I learnt a lot. Vacancy rates are a little high in each at the moment, but houses in a central location should rent easily enough. I was a little surprised that yields aren't higher tho.

Ive done a number of good NRAS deals in Orange in the last 12 -18 months. All valued up and all have rented to good tenants, with no arrears issues at all. The additional cash flow sees them 7-8K CF+ tax free as well.
 
Interested to hear what type / price range of houses you would be considering in Bathurst. New estates continually open in Bathurst and surrounds each year. Personally I can't see where growth can be made. As newer and larger houses are continually being built I would have thought it was the cost of houses that was rising not the value of land ?
 
Council rates a lot higher in QLD than other States. You can be up for 2-2.5k per property, instead of ~$1000.

Naah, not so high as 2-2.5k per property. Just Council rates alone in Logan e.g. Woodridge, Logan Central, Kingston etc is between $1300-1400

In Victoria, our fixed water charges, sewerage charges and water consumption is not appended to the Council rates. It comes with the water bill.
 
What sort of holding costs are you referring to which are higher in Brisbane? E.g. is it council rates, management, insurance? I've heard insurance being higher due to the floods but thought that wouldn't be an issue for Logan.

Pardon my newbie questions, I am interested in Logan as a potential area for a first IP purchase

In terms of holding costs, this is what I generally pay. Of course this can vary pending the property.

Property management - ~8%
Council & Water - around $1,200 to $1,500 per quarter
Insurance (Building & Landlord) - $1,200 to $1,500 per annum

On top of this repairs + maintenance and potential vacancy.
 
Naah, not so high as 2-2.5k per property. Just Council rates alone in Logan e.g. Woodridge, Logan Central, Kingston etc is between $1300-1400

In Victoria, our fixed water charges, sewerage charges and water consumption is not appended to the Council rates. It comes with the water bill.

Hey Beanie Girl,

I think you're refering to the rates for units and townhouses. I jave 2 houses on about 950m2 each in Slacks Creek the rates are about $800 a quarter. There was a class action (I think that's what they're called) recently against Logan City Council recently regarding the cost of rates. Apparently they were charging different amounts depending on whether it was a PPOR or an IP. Do you remember hearing anything about that?

Cheers
 
Well two very different examples here, one 800 a quarter another up to 1500 (with water).

In terms of holding costs, this is what I generally pay. Of course this can vary pending the property.

Property management - ~8%
Council & Water - around $1,200 to $1,500 per quarter
Insurance (Building & Landlord) - $1,200 to $1,500 per annum

On top of this repairs + maintenance and potential vacancy.

These holding costs do indeed seem very high. Means, say for a 250K property (median value in Logan Central according to RPData) that yields 6.5%:

Rent: 16250

Management: -8% = 14950
Council and water: - 6000 @ 1500 a quarter = 8950
Insurance: -1500 = 7450

7450, then minus maintenance and repairs. Hmmm seems pretty rough to me
 
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