Logan Central or Townsville - which one?

[Lealea]

I am new to this forum but I need some advice in regards to two places I am looking to invest in. So I have been researching two potential areas:
Aitkenvale (Townsville) and Logan Central - both are in Queensland.

On the plus side for Aitkenvale which is part of Townsville it is a major regional town with a lot of growth drivers including military (air force and army), James Cook University, agriculture and recently a main government base. The area I am looking at is Aitkenvale as it is close to the university, hospital and army barracks and the Stocklands shopping centre. On the negative, the council rates are high and insurance is high due to potential cyclone activity. Also the cost of the property (3 bedroom 1 bathroom) is around $335,000 and the rental income is only $370 per week so gross yield of 5.75%.

On the plus side for Logan Central it is located about 23km south of Brisbane and 42km north of Gold Coast, so central to both these rapidly expanding cities. The properties are around $260,000 (3 bedroom and 1 bathroom) and the rental return of 6.7%. On the negative, it does not have too many growth drivers apart from being located between Brisbane and the Gold Coast but they do anticipate significant population growth for SE Queensland.

So I was really just after your thoughts on these two areas. I will be looking at holding this property for the long term.
Thank you
Lealea
.

 

[Brady]

You said apart from large population growth.

That's a massive growth driver, take a look at what happened in West Sydney

 

[eeew]

You said apart from large population growth.

That's a massive growth driver, take a look at what happened in West Sydney

Agreed-its all about supply n demand.cant really control supply but can invest in areas where there will be demand

 

[geoffw]

I don't know the areas. But it is about supply and demand. There's been mention of increasing demand. But you need to know about supply as well. If there's a lot of land around, there could be huge increases in the population before the supply dwindles.

Areas with restricted supply of land have generally performed much better.

 

[Cherry Pro]

Hi LeaLea

See the other posts on the Logan area which is quite like Mount Druitt in Sydney's west where prices have shot up significantly. I think you can buy a 3 bedroom house at the $240 mark which will rent at $330 per week which makes it around a 7% return. Only last year, these homes were available at the $220 mark so there is already the upswing.

As compared to the drivers for Aitkenville, I think Logan is a no brainer but do your own due diligence.

 

[geoffw]

As compared to the drivers for Aitkenville, I think Logan is a no brainer but do your own due diligence.

CP

You know the area, so it's a no brainer for you, but others may not know.

For instance, what is the land supply situation like in Logan? Is there a lot of empty land, or is it mostly fully developed? What things make it a no brainer for you?

 

[underdev]

I like Townsville, however I know nothing about Logan.

Townsville is in a bit of a downturn atm so a good time to buy, its economy is based around mining. It is a hub for FIFO workers CUB (cashed up bogans) who work in remote QLD and spend like mad when they get home. The port will need to expand in the future along with the city to cope with influx of workers.

Also see http://www.townsvillebulletin.com.a...north-queensland/story-fnjfzs4b-1226752440044

Id say this is at least 10 year hold to maximise ROI considering projects under way / consideration.

 

[anshu806]

Hi,

I have been looking in Logan Central and interested in that area too. some of the properties are giving more than 5% return.

Does anyone know if there is any good side or bad side of Logan central. Is there any part of Logan central that we should stay away?

 

[RetireRich101]

any prediction if/when QLD will have SEPP for secondary dwelling?

any prediction if/when 4114 ( logan central areas) be rezoned to allow dual occupancy, splitter, subdivision etc?

 

[Bhp19]

SEPP? What is this?

 

[knightm]

SEPP? What is this?

I think its State Environmental Planning Policy - means statewide policy for granny flats that can make it easier than some council policies.

 

[Bhp19]

Thank you.

 

[strongy1986]

Who knows really

Mount druitt has only moved in the last couple of years .. After Sydney reaching a population of ? 5 mill? And being totally built out 50 kms in almost every direction
I'm fairly sure Brisbane is not at the stage yet
Significant tracts of land exist north west and south east of Brisbane so I'm still thinking a while until we see great growth in Logan

 

[AlmostBob]

am currently sitting in Jimboomba, drove thru logan today
dozens of subdivisions going in. huge roadworks
town water lines where everyone is currently on tanks
somebody thinks there is growth happening

 

[jonmardell]

I am new to this forum but I need some advice in regards to two places I am looking to invest in. So I have been researching two potential areas:
Aitkenvale (Townsville) and Logan Central - both are in Queensland.

On the plus side for Aitkenvale which is part of Townsville it is a major regional town with a lot of growth drivers including military (air force and army), James Cook University, agriculture and recently a main government base. The area I am looking at is Aitkenvale as it is close to the university, hospital and army barracks and the Stocklands shopping centre. On the negative, the council rates are high and insurance is high due to potential cyclone activity. Also the cost of the property (3 bedroom 1 bathroom) is around $335,000 and the rental income is only $370 per week so gross yield of 5.75%.

On the plus side for Logan Central it is located about 23km south of Brisbane and 42km north of Gold Coast, so central to both these rapidly expanding cities. The properties are around $260,000 (3 bedroom and 1 bathroom) and the rental return of 6.7%. On the negative, it does not have too many growth drivers apart from being located between Brisbane and the Gold Coast but they do anticipate significant population growth for SE Queensland.

So I was really just after your thoughts on these two areas. I will be looking at holding this property for the long term.
Thank you
Lealea
.

Logan seems to be gaining a lot of interest because of location and rental return. Near to train line and freeway between brisbane and gold coast. Stay away from the properties located near the power lines in meadowbrook.

 

[anshu806]

On the plus side for Logan Central it is located about 23km south of Brisbane and 42km north of Gold Coast, so central to both these rapidly expanding cities. The properties are around $260,000 (3 bedroom and 1 bathroom) and the rental return of 6.7%.
Lealea
.

is there a reason why the return in logan is higher than average market return

 

[devank]

is there a reason why the return in logan is higher than average market return

Undervalued??

 

[eeew]

Undervalued??

I disagree-

Returns are higher in logan is because it is higher risk-rirk of getting unsavoury tenants/neighbours, risk of crime, etc etc are all higher than say inner/mid bris. This is the case for most investments- the higher the risk=the higher the potential returns.
Risk and returns are are almost always proportional.

 

[anshu806]

Undervalued??

I dont think so but I might be wrong.

 

[INVSTOR]

Logan is a big area! I personally would invest in some Logan suburbs, not others.eg I like Waterford, edens Landing, Bethania and more, don't like Woodridge, Logan Central and more. they have a different feel and are probably price reflective.