Kingston / Logan Area

I know there's multiple threads on this but I created this one to answer questions that hopefully have not been asked or answered.

Before I ask just thought i would outline my goals.

After an investment that is cash flow positive (well neutral to minor negative at first is not a big deal).

I do have a development site in Sydney and am looking for another small one in Sydney. I do not see myself buying and holding anything in Sydney at this stage (The areas i can afford do not appeal to me in the current market conditions and the areas in Sydney that do appeal to me to, either i cannot afford or it would have major impacts on my ability to develop blocks in Sydney).

My income is not that high so usually with most development opportunities serviceability is my main issue. So i would like to gain passive income over the future hence cashflow is the main motive with this investment. CG is also a factor but is secondary to cash flow.

Why I am inquiring into Kingston/Logan - seems to have properties that are close to neutral gearing, looks like once the draft plans come into action there will secondary dwellings which will allow decent positive gearing. Seems like a low value investment - so risk and amount of equity (which would be used to service developments) are minimal.

From what i have read these areas are of lower social economics. 2770 equivalence of Sydney. Also bogan community (from Bogan Hunters). When i visited the area a few weeks ago found it to be more of an ethnic community (more of recent migrants). Didn't see to many bogans although i did visit on a Sunday (around Midday and not go inside the pub) so maybe they were all hungover from Saturday night lol.

Question)
Whats the ethnicity diversion like? I seemed to see quiet a few Indian/Bangladesh/Pakistan origin and quiet a few of African origin. Are the numbers from these backgrounds increasing (over the past few years). From the internet reading it gives more of an idea it is a Caucasian area with the next ethnicity being Islanders and Aboriginals.

Question)
Reading one of the treads i seemed to get the idea that dual livings already existed with the downstairs converted to a secondary residence, although as of current laws that these had to leased as one lease. It was usually migrants that were interested as they had larger families or consisted of 2 related families that would lease together. Would anyone have any experience/thoughts/opinion of the paragraph.

Question)
What's the difference of living closer to a railway station or not in terms of demand. How important is Kingston or Logan Central station to residents of the area. Also are the houses closer to station (e.g eastern side of Kingston such as Clair Rd) less disarable than the western side of Kingston? And do the houses that are near the station attract a certain type of people?

Quick Questions) Would anyone be able to quickly share the costs of their outgoings on a rental property in the area? (I know its probably out there on the site already)

Any reply on the questions or thoughts would be appreciated

Thanks
 
Hi Gach2,

Answers to your questions below:

1. It's definitely quite diverse. New immigrants, refugees coming from different countries and their first starting point. No different to Blacktown, Mt Druitt, Seven Hills etc. I would say as you go north to Trinder Park (North Woodridge) you tend to get more Caucasians. Towards Logan Central, more Islanders.

Can check out more data at http://house.ksou.cn/profile.php?q=Logan+Central,+QLD

2. The ethnic families tend to have larger extended families. So there is actually alot of demand for larger homes. I tend to find the larger homes easier to rent out. Ensure you have all the tenants on one lease agreement.

3. Right next to the station you tend to get more riff raff so try to stay away from it. On Kingston, I tend to stay away from the Eastern pocket - you get flooding. Prefer West of Kingston Rd.

4. Good post from RetireRich on the rates, the thread itself has more information too

http://somersoft.com/forums/showpost.php?p=1262340&postcount=43

Hope this helps.
 
Thanks for the reply,

Didnt seem to see many islanders though at the logan central shop.

With the current dual residence houses they all seem to use the bottom area as the house. Im not a local, but seems most houses have a bottom floor for the garage, laundry and storage/rumpus room. Are these for flood protection? If so are they ok to be used as habitable rooms?

Thanks,

Definitely helping :)
 
Thanks for the reply,

Didnt seem to see many islanders though at the logan central shop.

With the current dual residence houses they all seem to use the bottom area as the house. Im not a local, but seems most houses have a bottom floor for the garage, laundry and storage/rumpus room. Are these for flood protection? If so are they ok to be used as habitable rooms?

Thanks,

Definitely helping :)

Haha, I am surprised. I was there over the weekend, went to KFC....all Islanders :) They ran out of chicken too, sigh.

Yes, traditionally most highsets are designed this way.

For the rooms to be legally habitable bedrooms, it needs to be 2.4m and also comply to other standards like fireproofing etc....most aren't.

Hence have the family on one lease. Don't have separate leases for downstairs and upstairs.
 
Would these requirements you mentioned necessary if there one residence? eg all parties on 1 lease?

Like if i converted the laundry to a bathroom and added a kitchenette then partitioned 2 bedrooms and a living room, would i be able to rent out as a 5 bedroom (assume upstairs was a 3 bedroom) place with 2 kitchen facilities? upto tenants to sublet the bottom area or share with friends/family.

Have seen a few on re.com and rent seems to be around $450 mark while single residences only around $325-$350.

I do realise if done properly and the new planning allows auncillary units it could be rented for $550-$600 with seperate leases. But if that was to happen i could also build a granny flat and get $300ish on top of the $450 as the original house classified as single dwelling under one lease.

Thanks for the reply,
Thats it, I didnt go to the KFC!!!!!!!!! Just the K mart to grab an AUX cable since i couldnt stand brisbane radio
 
Like if i converted the laundry to a bathroom and added a kitchenette then partitioned 2 bedrooms and a living room, would i be able to rent out as a 5 bedroom (assume upstairs was a 3 bedroom) place with 2 kitchen facilities? upto tenants to sublet the bottom area or share with friends/family.

You can do the conversion and the rent will reflect this but pending the height it may not be legally approved. I have seen rents from $400 to $550 based the conversion.

My property manager was telling me an investor who has been adding granny flats on her highsets. So the rental return is as you described, income for the highset + ~$300 for the granny flat.

Thanks,
Michael
 
Michael's observation was largely correct.

Out of the few locals I spoke to - one REA said she would not live in either logan, woodridge or kingston. While another cab driver said he would not live in Woodridge, but the other 2 suburbs are okay.

If you are concerned about the low social-eco status of the area, try paying a lil more for Slacks Creek, Marsden, or Waterford West.


Personally it is not an area I would like to live in. But just because I don't like to live in it doesn't mean potential tenants will not either.
 
See attached PDF I generated from rpdata for Kingston and Woodridge.

Past growth does not indicate future, but...

The 2014 versus 2007, there seems to be a similar upswing.. The sale volume just needs to pickup in 2015, and we should see at least a moderate double digit growth..

The 2007 increase was an eye opener :eek:
 

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See attached PDF I generated from rpdata for Kingston and Woodridge.

Past growth does not indicate future, but...

The 2014 versus 2007, there seems to be a similar upswing.. The sale volume just needs to pickup in 2015, and we should see at least a moderate double digit growth..

The 2007 increase was an eye opener :eek:

Thanks Rich. By your predictions.... Oh my:):)
 
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