Logan Central

[miscg]

Thinking about buying an IP (house) in Logan Central. Any body else looking here?

Any thoughts or ideas would be appreciated.

Goal is to buy and hold for the long term.

I like the low entry point and yields.

Flew in from Sydney to spend the weekend, so I thought I would give some feedback as to what I have seen and what agents's are saying for any potential investors who have not been able to fly over.

For those of you who have not been to Logan Central, Kingston I would compare the suburbs in looks to the likes of Lalor Park in Sydney.

According to what agents are saying the market is completely driven by Sydney buyers who in most cases are not even flying over to look at the properties. One agent even mentioned to me that prices in these areas have been stagnant and Will never really improve.


For 250,000 you should easily be able to pick up a house on a 550 m? plus block which would be neutral after taking expenses into account.

From what I could see Kingston has more development happening.

Both areas have lots of housing commission which is evident.

Will I still in invest here? More than likely yes given that my investment will be neutral at least. Given where the Sydney market is at the present time, and taking into consideration that the entry point is low.

 

[tomlemke]

hey mate how'd you go did you put any offers on or just sussing out areas I'm doing a day trip next saturday I'm looking at very similar areas same budget

Flew in from Sydney to spend the weekend, so I thought I would give some feedback as to what I have seen and what agents's are saying for any potential investors who have not been able to fly over.

For those of you who have not been to Logan Central, Kingston I would compare the suburbs in looks to the likes of Lalor Park in Sydney.

According to what agents are saying the market is completely driven by Sydney buyers who in most cases are not even flying over to look at the properties. One agent even mentioned to me that prices in these areas have been stagnant and Will never really improve.


For 250,000 you should easily be able to pick up a house on a 550 m? plus block which would be neutral after taking expenses into account.

From what I could see Kingston has more development happening.

Both areas have lots of housing commission which is evident.

Will I still in invest here? More than likely yes given that my investment will be neutral at least. Given where the Sydney market is at the present time, and taking into consideration that the entry point is low.

 

[miscg]

hey mate how'd you go did you put any offers on or just sussing out areas I'm doing a day trip next saturday I'm looking at very similar areas same budget

No offers at this stage, still here looking. Just studying areas from che out.

 

[Rolf Latham]

One agent even mentioned to me that prices in these areas have been stagnant and Will never really improve.

they might be right.

But

when was the last time sometime with absolutes was anywhere near "right"

ta
rolf

 

[james start]

. One agent even mentioned to me that prices in these areas have been stagnant and Will never really improve.

What an idiot, hope you don't use him for anything other than throw darts at his head

 

[hugh72]

Short sighted comment from the agent without looking up exact median prices in the area I would guess they would have sold for no more than 100k -130k 15 years ago? Might take a long time but I would bet that the demographics of these areas will improve as affordability continues to decrease, meanwhile the holding costs are very low

 

[james start]

Short sighted comment from the agent without looking up exact median prices in the area I would guess they would have sold for no more than 100k -130k 15 years ago? Might take a long time but I would bet that the demographics of these areas will improve as affordability continues to decrease, meanwhile the holding costs are very low

You could pick up highsets in Logan for 170-190 2 years ago, now your lucky if you can get something for under 270

 

[RetireRich101]

One agent even mentioned to me that prices in these areas have been stagnant and Will never really improve.

This is true for part 1, but not so for part 2.
I purchased in Logan last year. The price I paid is 20% less that previous owner paid in 2008. The property may now may worth what was in 2008, so it took really 6-7 years to recover....

The stigma/low social doesn't need to improve for property prices to improve. Prices in 2770, and parts of stigma/low social in west/south Sydney haven't really improve but yet we see prices rise.

In terms of properties rented in a suburb I listed a few here
Chermside 57% rented
Zillmere 47% rented
Morningside 49% rented
Kingston 44% rented
Logan Central 52% rented
Source: residex.com.au

Other 'better suburbs' are seeing high % renters than Kingston/Logan, not sure I can fully accept that Logan is over supply of investors.

 

[skater]

One agent even mentioned to me that prices in these areas have been stagnant and Will never really improve.

Hehe, I've heard agents say that about 2770 too before the last upswing.

 

[The Black Duck]

Hi Miscg,

I have been actively looking for properties in Kingston, Slacks Creek and Woodridge for one month now.

My first purchase was a lowset 3 bedroom brick house back in 3 December 2013, which settled 7 days before the birth of new daughter.

My goal back then was to purchase a highset (preferably) property within the range $250,000 to $280,000.

In addition, the block must be at least 700m2, with the existing house as close as possible to the front of the block. The property must have side access for a drive way and no easements on the block.

This would enable me to build an annexed property with 3 bedrooms at the back of the property (just).

However, I decided on a lowset 3 bedroom property as it was on a large block, being 809m2.

The market has most definitely move North since December 2013.

Similar properties in the area are $300,000 plus.

The current rent for the front 3 bedroom property is $300 per week. The new build at the back is being rented for $320 per week.

The annexed property at the back, plus the depreciation, gives me a healthy positive cash flow return.

I have attached a few pictures if you like to have a look.

Regards

Andrew

 

[miscg]

Hi Miscg,

I have been actively looking for properties in Kingston, Slacks Creek and Woodridge for one month now.

My first purchase was a lowset 3 bedroom brick house back in 3 December 2013, which settled 7 days before the birth of new daughter.

My goal back then was to purchase a highset (preferably) property within the range $250,000 to $280,000.

In addition, the block must be at least 700m2, with the existing house as close as possible to the front of the block. The property must have side access for a drive way and no easements on the block.

This would enable me to build an annexed property with 3 bedrooms at the back of the property (just).

However, I decided on a lowset 3 bedroom property as it was on a large block, being 809m2.

The market has most definitely move North since December 2013.

Similar properties in the area are $300,000 plus.

The current rent for the front 3 bedroom property is $300 per week. The new build at the back is being rented for $320 per week.

The annexed property at the back, plus the depreciation, gives me a healthy positive cash flow return.

I have attached a few pictures if you like to have a look.

Regards

Andrew

Thanks very much for sharing the info and photos Andrew. Looks awesome. Good Luck with your searching. Have you had any tenant issues?

 

[Michael_X]

One agent even mentioned to me that prices in these areas have been stagnant and Will never really improve.

I would love to know which agent this was. Probably try to buy more properties through him/her

 

[The Black Duck]

Dear Miscg,

The first tenants in the front house were an absolute shocker.

They were always behind in rent every month ! I asked for the real estate agent to evict them as soon as possible.

At one stage they were more than 55 days in arrears. We found it hard to evict them, given that one of them was on life support.

But that is another story in itself !

The real estate agent, at the time, did not tell me this when he signed them on. We had no option but to take them to the tribunal.

We ended up winning at tribunal, due to their constant delaying tactics, and the tenants were a no show at the tribunal.

However, now 10 months we had no issues at all with any of the tenants!

A taxi driver and his wife are renting out the front house.

The back house has a single mum with three kids on Centre link.

All tenants have always paid on time and the houses are kept clean.

I hope this helps !

Andrew

 

[Biz]

Looks good black duck. To do the house at the back what is the zone required by council? Do you sub divide? What are the build costs like up there?

 

[The Black Duck]

Dear Biz,

The block will need to be zoned R600, as advised by the builder.

I have sub-divided the block, see attached plans back in 2014.

Please save it to your desktop and open it with Abode Acrobat.

However, I have not separated the block into 2 different titles due to the cost, I have been quoted over $15,000.

The total cost for the annexed build was $125,885.85 back in 2014. Five months to complete in total.

Regards

Andrew

 

[Biz]

Thanks Black Duck.

 

[strongy1986]

This is true for part 1, but not so for part 2.
I purchased in Logan last year. The price I paid is 20% less that previous owner paid in 2008. The property may now may worth what was in 2008, so it took really 6-7 years to recover....

The stigma/low social doesn't need to improve for property prices to improve. Prices in 2770, and parts of stigma/low social in west/south Sydney haven't really improve but yet we see prices rise.

In terms of properties rented in a suburb I listed a few here
Chermside 57% rented
Zillmere 47% rented
Morningside 49% rented
Kingston 44% rented
Logan Central 52% rented
Source: residex.com.au

Other 'better suburbs' are seeing high % renters than Kingston/Logan, not sure I can fully accept that Logan is over supply of investors.

2770 - it's called population squeeze, no other viable options for people to live a commutable distance to CBD
Brisbane is a long way from this

Prices have already moved there anyway , I can't see them going much higher in the short term now that the yields evaporated - investors stop pushing price up

Now it's up to the residents of Logan to do the heavy lifting,

 

[willair]

This could be misleading..

QLD councils mostly bundled there rates notice, garbage collection, state levy, water/sewerage service and water usage in one bill.
.

The BCC does not bill like that, you get one bill for the rates then within a week you will get a urban utilities bill,every three months,Logan has always been on the high side for rates ect,imho Logan hit the $$$$$highside wait 5 years cycle as it stays at these price levels ,it's happened before and is maybe happening now..

 

[Moneyman_85]

A villa in my complex sold last week for $15k above what I paid in June last yr, and mines on a bigger block. Not an investor either

 

[The Black Duck]

It would be interesting to see what is achieved for this property and the annexed build:

http://www.realestate.com.au/property-house-qld-slacks+creek-118610131