Logan - arguments for and against capital growth

Population growth, developing infastructure, historical patterns and trends, proximity to brisbane and Gold Coast, council plan - this thread encourages critical analysis of Logan's prospects for capital growth and differences within Logan. Cash flow seems reasonable, but does Logan and it's suburbs have potential for real capital growth? If so, where, when and why?
 
In my personal opinion no. Looking at history sold price, Some houses has gone up 30k in 8 years.

A lot of investor vs owners occupier. rental yield is good, but this is because people prefer to rent than buy even though it cost more to rent.

I could be wrong but this is what I see.
 
What we bought at $230k in 2012 is now worth close to $300k - not as spectacular as Sydney for sure cos if I had invested the same in Mount Druitt that would be close to $400k today ..but we're happy enough - approx. 8% growth pa + rental yield of over 7%
 
In my personal opinion no. Looking at history sold price, Some houses has gone up 30k in 8 years.

A lot of investor vs owners occupier. rental yield is good, but this is because people prefer to rent than buy even though it cost more to rent.

I could be wrong but this is what I see.

Using your logic nowhere in Qld has good capital gain prospects

My opinion- I'm not saying to invest in blue chip but when you can buy a house on a 600sqm block spitting distance to Brisbane CBD for 6- 700 then it's hard to see much upside for Logan from current prices in the immediate future

In melbourne the blue chip example would be worth several million and the Logan equivalent would be around 350 still

Having said all that there's nothing wrong with investing for yields but you just have to map out your strategy
 
Long term, there has to be capital growth once Brisbane and the Gold Coast start to merge.

Short to medium term: No idea.
 
In my personal opinion no. Looking at history sold price, Some houses has gone up 30k in 8 years.

A lot of investor vs owners occupier. rental yield is good, but this is because people prefer to rent than buy even though it cost more to rent.

I could be wrong but this is what I see.
Based on this logic nearly all of Qld would be a no go zone, I would much rather buy somewhere that hasn't grown much recently but is likely to and catch the ride.
Taking a longer term perspective is important, if someone had bought in SYD in late 2003 and it was 2011/12 you could say the same, periods of strong growth have historically been followed by declines and long periods with nothing happening. All very boring but that can be buy and hold IMO.
I think Strongy's point about the inner urban prices in BN vs Melbourne compared with Logan is a good analysis though
 
In my personal opinion no. Looking at history sold price, Some houses has gone up 30k in 8 years.

A lot of investor vs owners occupier. rental yield is good, but this is because people prefer to rent than buy even though it cost more to rent.

I could be wrong but this is what I see.

I with Hugh on this . One of the first things I look at is the long term growth .

Unless you're looking as a somewhere with a duboius future like a mining town , 30 k growth in the last eight years is a good starting point , though I must admit I'd even prefr to see negative growth

Easiest to access are the ten year charts . Before its recent boom started guess which city was bottom

Currently the two at the top of the ten growth rates are Perth and Darwin .

Brisbane isn't bottom of the heap at the moment , but from my recollection the two below it are Adelaide and Hobart . Would you want to buy there ?

Cliff
 
I bought in the area 8 years ago (2007). Usual 2 bedder in a small villa. Payed $110,000. In that same year, or maybe one year after, prices moved and I ended up selling in 2009 for $185,000.

That movement in the Logan market came 4 years after Sydney's run had stopped.

If history repeats itself, it won't be long before Brisbane as a whole moves, bringing Logan along.

I see people talking about growth in the area, but looking at RealEstate.com, I still see properties similar to mine selling for under $200,000. So not that much movement since I sold.

This may be wishful thinking, but if I were in a position to invest, Brisbane would be my pick.
 
might be a tortoise and hare comparison

Are people expecting a boom in qld or just constant steady growth as confidence returns?

For brisbane to boom, at least one of two things will need to happen:
1. Significant growth in non mining jobs such as IT, financial services, telecommunications etc, and/or
2. Return of high energy prices such as lng.

If both happen simultaneously, they will get a boom bigger than Sydney.

Point 2 will eventually happen as prices are cyclical. Point 1- they will have to fiercely compete with Sydney and Melbourne and that will be tough...long way to go to get that competitiveness but brisbane is on the right track.
 
You need to keep reminding yourself of the obvious,the inner southside just by the resale and prices from the last 3 years has not moved that much,unless it can be split and developed and in a rezoned area,most of the other sales that I track,bought and sold over the past 36 months have made very little money,one I looked at over three years lost over 200k on paper,maybe Logan as it is a massive area will keep up the price gains but what ever area within the BCC control will just have steady growth after all if you span the price over 25 years areas by area street by street some inner city small pockets have been doing above 12% year in year out over that investment period,i know West-End has been in that range..imho..
 
For brisbane to boom, at least one of two things will need to happen:
1. Significant growth in non mining jobs such as IT, financial services, telecommunications etc, and/or
2. Return of high energy prices such as lng.

If both happen simultaneously, they will get a boom bigger than Sydney.

Point 2 will eventually happen as prices are cyclical. Point 1- they will have to fiercely compete with Sydney and Melbourne and that will be tough...long way to go to get that competitiveness but brisbane is on the right track.

What about the low dollar effect on QLD tourism? Would that be a relatively weak fundamental as far south as Brisbane?
 
What about the low dollar effect on QLD tourism? Would that be a relatively weak fundamental as far south as Brisbane?

Yes, the lower dollar will help tourism and that will help brisbane no doubt. Tourism is however transient and no idea Howlong the dollar will be low either. Looks like at least for this year.
Many ccommentators eg htw have said brisbane is in a transition to a more non mining economy and the maturation of that is going to be the main and more permanent driver of growth and attractiveness.
It's making progress, but still considerably behind the southern capitals.
 
There has definitely been a small amount of growth over the past 18 months -2 years.

I purchased a Lowset Brick and tile 3x1 on 764sq corner block mid 2013 @239k. Great condition, fresh paint, carpets,blinds no work required, $310pw rent.

I always keep my eye on the market there and whats for sale. You don't get much now for less than $260k +. Speaking to my agent he said my place would be higher 200s if sold.

With the new zoning plan in the process of being signed off, allowing sub dividing of 1000sq or 700sqm corner blocks, it may squeeze prices up a little more on properties of this size. I will be building a 3x1 granny flat on my block and fencing it off or dual occupancy for extra yield.

Scott
 
There has definitely been a small amount of growth over the past 18 months -2 years.

I purchased a Lowset Brick and tile 3x1 on 764sq corner block mid 2013 @239k. Great condition, fresh paint, carpets,blinds no work required, $310pw rent.

I always keep my eye on the market there and whats for sale. You don't get much now for less than $260k +. Speaking to my agent he said my place would be higher 200s if sold.

With the new zoning plan in the process of being signed off, allowing sub dividing of 1000sq or 700sqm corner blocks, it may squeeze prices up a little more on properties of this size. I will be building a 3x1 granny flat on my block and fencing it off or dual occupancy for extra yield.

Scott

How many granny flats can you put in a backyard? How much will it cost you?
 
Back
Top