Logan: Getting a bit too hot?

[Feradd]

What are peoples thoughts on townhouses and villa's in the Logan area? I know it's a family orientated area so the rental properties would require some yard space. Would the demographics of this area up to Sunnybank support the need for townhouses? Is there enough room in a townhouse for the families living here?
They offer excellent yields, have not yet recovered from the floods of 2011 and have also shown a big increase in volumes of sales since August 2013. An increase in volume usually follows with an increase of price.

 

[Truly Exotic]

as youd expect, yields are falling in 4114 postcode

rents for base level 3 bdrs are about the $300 mark
while prices have gone up from $190k to $240k in the last 12 months

 

[lila77]

I bought a townhouse in Beenleigh just shy of a year ago and my property has just (in last few weeks) been valued at $90,000 more than I paid for it (which is a value increase of 60%). I have done a $13,000 cosmetic reno (new kitchem, bathroom, floorcoverings, a few new doors and repainted). But the reval was curbside only. I originally had a bad tenant but who else would live in a crap heap with a half rotted kitchen!? It's had a fantastic tenant now for past 8 months and I'm get over 9% rental yield.
So my opinion is since this post was started that logan city has had some increases in value or maybe I just bought really, really well!

 

[mikezen]

I bought a townhouse in Beenleigh just shy of a year ago and my property has just (in last few weeks) been valued at $90,000 more than I paid for it (which is a value increase of 60%). I have done a $13,000 cosmetic reno (new kitchem, bathroom, floorcoverings, a few new doors and repainted). But the reval was curbside only. I originally had a bad tenant but who else would live in a crap heap with a half rotted kitchen!? It's had a fantastic tenant now for past 8 months and I'm get over 9% rental yield.
So my opinion is since this post was started that logan city has had some increases in value or maybe I just bought really, really well!

Beenleigh hasn't moved much or if anything for what I have seen, so you probably bought well, this area is one of the last to move, still good buying opportunities around with low competition,

 

[Corey Batt]

I bought a townhouse in Beenleigh just shy of a year ago and my property has just (in last few weeks) been valued at $90,000 more than I paid for it (which is a value increase of 60%). I have done a $13,000 cosmetic reno (new kitchem, bathroom, floorcoverings, a few new doors and repainted). But the reval was curbside only. I originally had a bad tenant but who else would live in a crap heap with a half rotted kitchen!? It's had a fantastic tenant now for past 8 months and I'm get over 9% rental yield.
So my opinion is since this post was started that logan city has had some increases in value or maybe I just bought really, really well!

Fantastic result! What are you strata costs on the property per year?

 

[lila77]

Fantastic result! What are you strata costs on the property per year?

$1500 per year

 

[Cadwallader]

I bought a 3+1+2 in Woodridge late last year for a discounted asking price, renting at $360 with great tenants. Over all I'm really happy with the 4114 area thus far! And can only see it getting better and better!

Cad

 

[Feradd]

Thanks for your replies.
I'm seeing lots of townhouses on re with swimming pools as part of the strata. These tend to be the cheaper ones which look good on the surface but must have higher strata fees than those without a pool. My preference is to go without a pool however if I was living there myself I would like a pool with the Queensland weather.
It looks like an area that fits my strategy of buying affordable properties that cost nothing to hold and near amenities so you can forget about it and let the capital growth do it's wonders. This has worked for me in Sydney anyway.

 

[Corey Batt]

Thanks for your replies.
I'm seeing lots of townhouses on re with swimming pools as part of the strata. These tend to be the cheaper ones which look good on the surface but must have higher strata fees than those without a pool. My preference is to go without a pool however if I was living there myself I would like a pool with the Queensland weather.
It looks like an area that fits my strategy of buying affordable properties that cost nothing to hold and near amenities so you can forget about it and let the capital growth do it's wonders. This has worked for me in Sydney anyway.

Agreed, if buying strata I'd avoid too many facilities available, as they are a long term liability which you'll be stumping up for - at the erosion of your cash flow.

 

[AusPropertyPow]

I think Logan is a solid investment. It's been noticeably moving this year so probably best to try and get in this year otherwise the boat will have sailed. I agree that investing in Logan and a few other areas in Brissie is better than Western Sydney.

Brisbane has not boomed though, just steady price growth which should continue into next year and beyond.
Cheers

 

[norwoodman]

REIQ has the vacancy rate for Logan in the June quarter at 2.8%, on the increase.

 

[kennyboi]

I am wondering if anyone can tell me if there are specific areas or streets to avoid buying in Logan, especially in Woodridge, Logan Central, Kingston & Loganlea.

 

[Dbz_Vic]

I have been looking in Logan area myself, and to my knowledge as long as its not close to housing commision type properties (use google maps to check out street scape) and check flood maps, you will be alright.

Prices have definitely moved in the area, wish i had bought in 2012 or last year, but some properties especially done up ones that are dual living (1 tenancy) are sitting on market longer as they are asking high $300k in Woodridge. Slacks Creek also has houses for high $300k but are lowsets or 3,1,2. Kingston is only suburb that matches Woodridge in price, everywhere else is in the $400k+ - $500k range for good quality homes. A reno'd 3,1,2 at Rochdale Sth for eg asking $475,000. Discounts can sill be had but only if its forced sale or urgent sale or reno upper etc.

I look for done up dual living properties as i don't have the time nor cash to do a full reno or improvement (ie. new kitchen, bathroom and multipurpose rooms downstairs) on a rundown place. There are a few neat ones that have had simple renos now asking $320k+. Yields are still not bad at 7%+ if you can find one that is dual living.

Only thing i am a little concerned about Logan Area is unemployment. Can others chime in on this because last time i read in the media its 14% in Woodridge which is an improvement on 18% in 2012 i think. I was told that there are a lot of migrants moving into Woodridge / Logan Area and demand for housing is there though.

 

[INVSTOR]

Yay, it looks like Waterford has finally bottomed and on the way up!

 

[ZOMG]

I am wondering if anyone can tell me if there are specific areas or streets to avoid buying in Logan, especially in Woodridge, Logan Central, Kingston & Loganlea.

Interested in this as well, taken a look on Google streetview but would like something more substantial. Is there any way to check location of housing commission properties in a certain area?

 

[beachside]

What I discovered recently up there is that you can't judge a book by it's cover as you can in NSW and other parts of the country. Some HC houses like in Woodridge are obvious, but in other newer areas they are just the same houses as built throughout the estate by the developer which the HC buys from them, a few here and there. You can't tell by the untidiness in a high rental area, just as many untidy rentals. One agent said she had access to where they are located, but probably just looking up the owner details on RPData etc.

 

[Dbz_Vic]

Yields are definitely falling in Kingston/Woodridge from what i have seen. Some houses are only yielding 5+% gross! Cashflow properties re all but gone, apart from those setup for dual living. If you are after growth, definitely go for the better suburbs like Rochedale South, Springwood and Daisy Hill but you need a budget of $400-$500k. Prices have been steadily climbing since 2011/2012, up 3-5% per year. For anything under $300k its Kingston, Woodridge or Logan Central.

 

[jbs23]

Atlasid is great.Go to site then find the local council you are after (in this case Logan City Council) and there is plenty of information. Data is from 2011 census however still gives some idea on housing commission etc and it has more updated info also (economyid and profileid).

 

[RetireRich101]

Logan and Ipswich vacancy rate is down

Logan City?s vacancy rate currently sits at 1.5%, with Ipswich City at 1.6%, both down 1.4%.

http://www.propertyobserver.com.au/...outheast-queensland-rental-hotspots-reiq.html

 

[HappyCamper]

Anyone on the ground in Logan at the moment? What's the market like? Thinking of offloading an underperforming property to seek other opportunities.