Beenleigh Brisbane for Investment_ what u think?
- Thread starter ss12
- Start date
Hi SS2
In the Beenleigh / Logan area, you can get the 7 - 8% rental yield for the right property. So if was buying a $300k property, I would not consider rent below $420 per week.
Read the other posts here on Logan and you will find out what others think about the area.
Good luck !
In the Beenleigh / Logan area, you can get the 7 - 8% rental yield for the right property. So if was buying a $300k property, I would not consider rent below $420 per week.
Read the other posts here on Logan and you will find out what others think about the area.
Good luck !
I've just come back from shooting a video around Beenleigh. The people there walk a little weirdly.
http://www.youtube.com/watch?v=O8FLqrL-hus
http://www.youtube.com/watch?v=O8FLqrL-hus
Hi ss12, Somersofters have recently bought in Logan: 1 bought a house in Beenleigh and another a townhouse in Waterford west. But you can buy a 3 to 5 bed house in Logan central, Woodridge, Slacks Creek, Kingston for around the price you indicated and get very good rental return, as Cherry Pro mentioned, about the $420 per week mark.
The 2 somersofters share their experience in buying their respective properties.
My latest purchase:
House in Beenleigh - 3 bedroom, 1 bath, 1 car
Rent $330 pw
only thing wrong with it is a loose cupboard hinge
Purchase Price $228,000
Rental Yield - 7.5%
Last owner paid $290,000 in 2011
Value - didn't bother doing pre-val...conservative guess based on comparables $270-$280K?
Not a super duper deal by any means but definitely a good buy for the area particularly in the better part of Beenleigh and excellent prospect to reuse capital for next purchase.
Hi guys,
Thanks again for all the outstanding content on the site - even though I probably haven't contributed as much as I would've liked, I've spent countless hours reading and researching based on the contributions of the members here (so thank you).
Just thought I'd pop my head in and share a deal I've just gone unconditional on. As you're aware, I'm a young investor who purchased his first property mid 2013: http://somersoft.com/forums/showthread.php?p=1048574#post1048574. This deal is number 2:
The Property:
* 2 bedroom, double story brick veneer townhouse in the Logan Central district (Waterford West, QLD), 1 bathroom, and 1 car port parking within a complex of 10
* Sold for $210,000 in July 2009
* Built in 1990
* Floor size of 71 m2.
The Numbers:
* Purchase price: $165,000
* Currently untenanted but tenant lined up at $280pw post settlement (day one yield of 8.82%). There are also two in the same block tenanted for $280pw.
* 97% LVR inc LMI capitalised - total loan: $161,106.52 from Bankwest at 4.88% = $655.17 per month repayments or $151.19 pw. Interest only loan with 100% offset account
* Approx other expenses: Council/Water/Enviro rates (approx $2960pa = $56.92pw), strata fees (approx $1332pa = $25.62pw), Landlord insurance (approx $310pa = $5.96pw, property management (approx $1200.00pa = $23.08pw). Depreciation report to be sorted asap.
Total cash flow pre-tax:
Income: $280.00pw
Expenses at approx levels: $262.77pw
= + $17.23 per week
The property needs some minor cosmetic work prior to the tenant moving in: putting silicone on small leak under kitchen sink, remove OR strengthen IKEA cabinet in kitchen, replace cracked shower screen, replace fly-screen on back door due to old pet holes, and carpet on ground floor needs to be steam cleaned or replaced. Structurally, B&P came back very good from fire safety and structural perspective.
RP Data reports the property is worth approx $190,000 - and there is another property in the same block on sale for $195,000 through Re/Max Community. I think it positions me well for #3 and #4 later in the year, and keeps the cash-flow within the portfolio strong. I know seeing young investors like Nathan posts his deals inspired me to push harder, so I hope I can one day help others from my own experiences.
Pictures to follow during the week when I get my camera back from my gf
Happy investing,
Nixba
I would pay a buyers agent fee if you can find a house like that
Some people can stand stationary for a long time... especially a kid is standing in one leg!
Are you looking at rents in Beenleigh or Woodridge/Logan central/Slacks Creek/Kingston?
Don't give up, ss12, it is possible. I bought a 5 bed 2 bath house for 320K late last year, and it is giving 550 per week rent (Woodridge) A fellow investor bought for 300 and is getting 420 per week which will be increased soon (Kingston). I wager any of the below should get you $420 rent at least if not more from the right group of tenants. But of course, do your due diligence like flood checks, check the street and neighbours, building, pest etc....
http://www.realestate.com.au/property-house-qld-kingston-115673791
http://www.realestate.com.au/property-house-qld-kingston-116257275
http://www.realestate.com.au/property-house-qld-slacks+creek-116284499
http://www.realestate.com.au/property-house-qld-woodridge-115416259
http://www.realestate.com.au/property-house-qld-slacks+creek-115983095
http://www.realestate.com.au/property-house-qld-woodridge-115944723
INVSTR - lol they do walk funny out that way - that certainly isn't the run down, povvo, crappy Beenleigh I remember.
I wonder what the long term prospects for capital growth are in the area. It's find to have a positively geared property but in 10 years if it hasn't gone up in price much, what's the point?
Lots of land out that way, so if the area takes off I'd be worried developers will come in and create new boxy little estates for the people and investors in the area will be competing for rent and sales with brand new boxes.
Just thinking out loud.
I wonder what the long term prospects for capital growth are in the area. It's find to have a positively geared property but in 10 years if it hasn't gone up in price much, what's the point?
Lots of land out that way, so if the area takes off I'd be worried developers will come in and create new boxy little estates for the people and investors in the area will be competing for rent and sales with brand new boxes.
Just thinking out loud.
Lone Pine Koala Sanctuary were suppose to be relocating there. I'm not sure if the idea got scrapped or delayed. I guess all the money being pumped into new town center will make a difference eventually.
http://www.logan.qld.gov.au/plannin...ng/structure-plans-and-master-plans/beenleigh
Cashflow is only gravy. Its purpose is to keep your head above water and make you look good to banks so you can buy more.
Real money is made when you buy below market value.
I wouldn't pay anything over 250 in any logan suburb for a house...(with exceptions like dual occ, acreage etc)
So not even in better Logan suburbs on the other side of the Pacific Motorway like Rochedale or Daisy Hill? You're absolutely kidding yourself if you think 4114 is the only postcode that makes up Logan.
Nope wouldn't even bother looking at those suburbs in Logan LGA as they are not suburbs fit for my investment strategy...not sure why anyone would bother with them at all actually considering the prices are matching those of much nicer suburbs in Brisbane...each to their own I guess.
Can you give us an example please!! Thanks
Yes, you're right... thanks for completing the differential between the two suburbs. And yes, rates in Logan are generally higher than Brisbane City.
These are my concerns too, plus rental demand. If I bought 3 - 5 km from the cbd I would never have to worry about rental vacancies. CG is pretty much assured as there is always huge demand so close to Brisbane.
I've heard that the Brisbanes plan going forward to cater for the population growth is building up medium density housing in the inner/middle ring <10 km to CBd as 70 % of the population growth will be living near the CBD. To me investing <6 km to cbd you can't go wrong (with the right property of course)
I still do find it tempting to invest out Logan way for the yields, it just feels riskier to me.
Nobody has a crystal ball and I don't think people should invest based on speculation and hope, pray, dream that one magical day CG will make years of negative cashflow worthwhile
4 x $500k negatively geared properties that might gain $100 - $150k each
vs
10 x $200k positively geared properties that might gain $50 - $100k each (VERY CONSERVATIVE!)
Safety in numbers - what happens when your 4 negatively geared properties decide to become vacant for 2 weeks or more?
cashflow from 10 positive geared cheapies will look after the 1 or 2 that are having some tenancy issues from time to time
lets not forget you can build a much larger portfolio of $200k cashflow cheapies on average incomes...
but anyway...i digress...didn't mean to turn this into a which strategy is better debate!
beenleigh is crap - don't invest there - stay out of my area!
Hi Somerhut, in answer to your question, yes, a tenant group comprising of family/relations or friends/relations will in general, pay a higher price to live in a fairly large house with dual living capacity (e.g. 3 beds up, 2/1 bed down, 2 living rooms, 2 kitchen/kitchenette).
Large properties for rent in Logan 4114 and Slacks Creek are scarce, it's mostly the 3/1 advertised for rent.
Speak to the REA, they will tell you what the property will rent for in the current market.
As for renting out separately, the Logan draft plan is positive towards dual occupancy (dual key) atm. It will be permissible to rent out the same house separately to different parties as long as the property is on one title, share a common wall and common driveway.
Granny flats, Dual Occupancy (2 houses on one title e.g. separate or duplex/semi) is also regarded in a positive light.
This will be the strategy Logan will adopt to accommodate future population growth. There will be some townhouse precincts but the majority of 4114 will be low density residential suburban that will allow dual occupancy (dual key), dual occupancy and granny flats
The high rise office and residential buildings are planned to be in Springwood which will be like a CBD.
Link to Draft Logan Planning Scheme - target is to finalise by July 2014
http://www.logan.qld.gov.au/planning...lanning-scheme
link to 'Search my property interactive mapping'. Search on any property for the zoning under the Draft Logan Scheme
http://www.loganinteractivemapping.com.au/
link to low density residential zone fact sheet
http://www.logan.qld.gov.au/__data/a...ntial-zone.pdf
link to low to medium and medium density residential zone.
http://www.logan.qld.gov.au/__data/a...ntial-zone.pdf
link to where dual occupancy, dual occupancy (dual key), and secondary
dwelling types of developments is allowed (stipulates what is allowed where, minimum lot size, size restriction for the subordinate dwelling, requirements for dwellings to attached (if any) )
http://www.logan.qld.gov.au/__data/a...-dwellings.pdf
hi Beanie girl
reading the various posts and threads you seem pretty knowledgeable in this area.
would you be able to advise the areas in logan central to avoid?
and your opinion between logan central vs slacks creek?
cheers
Jerry
