Bathurst or Logan Central

Discussion in 'Where to Buy' started by Brady, 1st Aug, 2012.

  1. Michael_X

    Michael_X Member

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    Oops, I copied the wrong numbers across. It should be this

    Property management - ~8%
    Council & Water - around $800 to $1,000 per quarter
    Insurance (Building & Landlord) - $1,200 to $1,500 per annum

    So updating your numbers:

    250K property

    Rent: 16250

    Management: -8% = 14950
    Council and water: - 3200 @ 800 a quarter = 11740
    Insurance: -1500 = 10250

    10250, then minus maintenance and repairs.

    Take into account mortgage repayments too. You generally need 7% to break even.
     
  2. Beanie Girl

    Beanie Girl Member

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    Hey Northy! 2 houses on 950m each in Slacks Creek? That's excellent! :D
    You can probably apply to Logan Council for subdivision 'cos your blocks are close to 1000m. Double your fun! Actually, quadruple it! :)

    Yeah, I vaguely remember hearing about the class action, Northy. Looks like they haven't won yet 'cos my latest Council rates still look about the same ;)
    The only difference is a 14.76 credit for Carbon Tax Refund, hahahaha
     
  3. RetireRich101

    RetireRich101 Member

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    Here i share my council rates and water charges for a property in Logan council.

    The total rate notice (quarter) is $887.94. Breaking this up, we have

    (1) 225.25 general rate ( for a land value $147k)
    (2) 68.00 garbage charge
    (3) 17.40 environmental charge
    (4) 85.55 Community Infrastructure charge
    (5) 47.45 State Emergency Levy charge
    (6) 444.29 Water and Wastewater (sewerage) charges
    Less discount 19.82

    For council charges + state charges (1)-(5), total is 444.29 for the quarter, total for the year 1,777.16

    I looked at NSW equivalent council+ garbage charges.
    one was $1719 ( for a land value $206k)
    the other $1200 (for a land value or $185k)
     
    Beanie Girl likes this.
  4. Northy85

    Northy85 Member

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    Thanks Beanie Girl,
    Yea my rates haven't changed either. That's Interesting about the subdivision potential. I might look into it more. It might turn out to be my first development :)
     
  5. Beanie Girl

    Beanie Girl Member

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    Hey Northy, did some research on that class action -
    Excerpts from this article : http://www.propertyobserver.com.au/...er-council-charges-for-investors.html?start=1


    "Earlier this month (July 2014), Queensland's Supreme Court set aside a decision by the Mackay City Council to charge property investors increased rates, following a class action suit from investors.

    Mackay City Council is reportedly considering an appeal to the decision. Margaret Lomas believes that the Supreme Court's judgement is likely to affect other councils who use a differential rating system based on land use. While she is only aware of the practice in Brisbane City and Logan City, she says she "does not doubt it happens in other councils".

    It seems that differential rates for investors does occur in other local Queensland councils, with Local Government Association of Queensland chief executive Greg Hallam telling The Morning Bulletin that "many councils presently use the differential rating power to categorise residential land based on whether it is used as a principal place of residence, or for investment purposes.?"

    As for the council's argument that the differential rating system is equitable because investors receive tax deductions that home owners do not, Lomas disagrees.

    "The fact is that all property investors get different rates of tax reduction. So if they want to make it fair, your rates would have to be linked to the size of the deduction you get. [The practice] is very inequitable, even among property investors."



    In another article, specifically about Logan Council.
    http://www.jimboombatimes.com.au/st...uling-could-cost-logan-city-council-millions/

    Logan is just one of 20 councils across Queensland charging higher rates for property investors than owner-occupied residential properties.

    The issue was taken to the Supreme Court by a group of Mackay Investors who were being charged $200 a year above normal residential rates.

    The court ruled in favour of the investors, stating that the Local Government Act permitted differential rates to be charged based on the characteristics of the land but not on personal characteristics of the owner of the land.

    Logan City Council introduced differential rates in 2006. It currently charges residential rates of 0.3262 cents to each dollar of rateable value.

    Non-owner occupied residential land is charged at 0.4326 cents to the dollar.

    This means a difference of $266 a year for a $250,000 property.

    A council spokeswoman said it was unlikely Logan would be affected by the court case, as its rates were categorised differently to Mackay's.

    She said if the council was forced to abolish differential rates, all ratepayers would suffer.

    "Between them, Logan's ratepayers would need to fund an additional $6.8 million annually," she said.

    The Local Government Association of Queensland (LGAQ) has lodged an appeal against the Supreme Court's decision.

    With a date yet to be set for the appeal, CEO Greg Hallam said the LGAQ was seeking advice from the state government on how councils should proceed in formulating their 2014-15 budgets.

    "We need to get clear advice from the Queensland government about how they intend to work with us to make sure that we can properly levy these rates into the future," he said.

    Mr Hallam said if the appeal was lost, it was possible councils would be forced to repay the rates.

    "That is a possibility but we have to be very careful that we don't get into subjudice and presume to speak for the court of appeal," he said.

    "But it is a theoretical possibility, that's for sure.

    "The court might find in favour of us, they might find in favour of the other side, and then there's still the possibility either parties might decide to go to the High Court as well.

    "So this could take a long while."
     
  6. Northy85

    Northy85 Member

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    What a mess! If they have to pay the money back it would take months if not years for them to work that out. It would be nice though. Margaret Lomas has got a fair amount of skin in the game, so hopefully she pushes for the refund hard.

    Cheers for all that information. It's going to be interesting either way.
     
  7. ycdfdyan

    ycdfdyan Member

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    Hi I bought one in Beenleigh, Logan in mid 2013 for $259k. It's a 3 bedroom lowset brick veneer house with a land size of 900m2.

    It has been tenanted since the first day of settlement. Rent at the time was $320 and now has increased to $345. Two tenants, both great (the first one moved after one year due to job relocation), maintain the house very well and the 2nd tenant has just repainted the house themselves.

    A house nearby with similar condition but smaller land size was just sold for $298k. Talked to a local RE agent a few days ago and she reckon the house will sell at early $300k in today's market.
     
  8. mikezen

    mikezen Bigmember

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    Yes, properties are selling faster now, did you buy in the cbd high density zone?
     
  9. ycdfdyan

    ycdfdyan Member

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    I have got properties both in Brisbane and Logan. From my own experience the council rates in Logan are pretty high. I pay over $800/quarter rates & water in Logan which I think is very expensive compare to my two other properties in Brisbane. The land valuation of my logan property is $173k.

    I pay roughly about the same rates & water for my other property in Brisbane. Land valuation of that property is $415k.

    As far as I know management are about the same though we self-manage our properties.

    Insurance - about the same (~$50/month landlord insurance)
     
  10. ycdfdyan

    ycdfdyan Member

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    It's very close to the CBD but not one of the high density zoned ones. Wish it is :D
     
  11. Brady

    Brady Big 4 Banker

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    Thanks for sharing :) some good capital growth and increase in yield.
     
  12. arg821

    arg821 Getting There

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    Council Rates

    Hi all,

    I have two properties in Woodridge which are approx $750/qtr for council & water. One property in Loganholme which is about $670/qtr for council & water.

    Hope this assists someone in working out holding costs ....
    oh, and insurance (building + Landlord protection) is $950/yr

    Andrew.
     
  13. Michael_X

    Michael_X Member

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    That's a pretty good price for insurance :) Who do you use?
     
  14. arg821

    arg821 Getting There

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    Suncorp ..... having said that, we have 9 policies with them, 7 properties and 2 cars!! Also, I have not had to make a claim in a heap of years so I can't verify how good/bad they are ....

    Andrew.
     
  15. Michael_X

    Michael_X Member

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    That's an awesome price. When I tried Suncorp they were more expensive, maybe need to do a bulk deal. Thank you.
     
  16. miscg

    miscg Member

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    Allianz just quoted me $900 p.a for landlord and building.
     
  17. Michael_X

    Michael_X Member

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    Interesting. I have been using Terri Scheer, looks like more on the expensive side but their cover is quite good.
     
  18. arg821

    arg821 Getting There

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    I didn't think Terri Scheer did Building insurance, just Landlord?
     
  19. Michael_X

    Michael_X Member

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    They do both. Combined together they give 10% discount.
     
  20. Truly Exotic

    Truly Exotic Property Deal Finder

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    Ill need to check but I pay $750-$850 per year for mine for landlords and building via EBM