Logan QLD
- Thread starter ger
- Start date
Hi there,
I purchased a free standing 3br house in Loganholme back in 2003. Paid $115,000 for it, now worth around the $250,000 mark. Tenants have generally been OK, but there have been a few minor problems (guess one has to expect this from time to time). I think the place has a good future. Excellent infrastructure and local amenities, and position from Brisbane/GC is ideal with the Motorway right next door.
I'm not sure what stage the area is at now, whether its going well or has flattened, as I purchased a few years ago now.
Andrew.
Loganholme-not too sure
Hello, we are really no experts but living not too far away on the Gold Coast we hear a lot of negative aspects about that area, especially the criminality.The reputation is still quite bad and we also heard and read concerning things about tenancies.But we do not personally have an IP there so it maybe better now- some streets might be much better than others.And I have to agree with Andrew about the benefits of the position!
Good luck
Sandra H
Hello, we are really no experts but living not too far away on the Gold Coast we hear a lot of negative aspects about that area, especially the criminality.The reputation is still quite bad and we also heard and read concerning things about tenancies.But we do not personally have an IP there so it maybe better now- some streets might be much better than others.And I have to agree with Andrew about the benefits of the position!
Good luck
Sandra H
There are good and bad areas of Logan in terms of criminality and general reputation.
The good tend to be on the eastern side of the M1 (Springwood, Rochedale, Shailer Park, Daisy Hill etc..) and the bad tend to be on the western side (Kingston, Woodridge, Loganlea, Logan Central).
A lot more money has been invested in the eastern suburbs of Logan, particularly involving transport (Southern Busway) as well as shopping centres and other related developments and services.
The eastern side is mostly current and ex-housing commission stock, some of it dating back to post WW2. Most of the shopping and service precincts are quite run down and the whole area is in desperate need of urban renewal. There are shopping precincts but they are of very low quality.
Land value, though, has arisen simply because of the proximity to the GC and Brisbane, with the highway and dedicated busway providing direct access to both areas. That, and it's simply the only affordable land under $200-250k that's still within a 25-30km radius of the Brisbane CBD. In most cases its a 15 minute bus or car ride directly into the city. There's also a train line on the eastern side that links to Brisbane/GC.
The area is definately on the up, but it still requires a very generous investment by both the LCC and the state government if its going to be a desirable place to live. That said - it's still very cheap and that factor alone can be enough for people to decide to live somewhere with a dodgy reputation.
The good tend to be on the eastern side of the M1 (Springwood, Rochedale, Shailer Park, Daisy Hill etc..) and the bad tend to be on the western side (Kingston, Woodridge, Loganlea, Logan Central).
A lot more money has been invested in the eastern suburbs of Logan, particularly involving transport (Southern Busway) as well as shopping centres and other related developments and services.
The eastern side is mostly current and ex-housing commission stock, some of it dating back to post WW2. Most of the shopping and service precincts are quite run down and the whole area is in desperate need of urban renewal. There are shopping precincts but they are of very low quality.
Land value, though, has arisen simply because of the proximity to the GC and Brisbane, with the highway and dedicated busway providing direct access to both areas. That, and it's simply the only affordable land under $200-250k that's still within a 25-30km radius of the Brisbane CBD. In most cases its a 15 minute bus or car ride directly into the city. There's also a train line on the eastern side that links to Brisbane/GC.
The area is definately on the up, but it still requires a very generous investment by both the LCC and the state government if its going to be a desirable place to live. That said - it's still very cheap and that factor alone can be enough for people to decide to live somewhere with a dodgy reputation.
Bought 2001-2002 for 65 - 80 K. Prices have gone up . Sold some ( thinking of selling rest as I don't see any capital growth there for a while ). After last boom , prices went backwards for a number of years . Units paid catch up after houses boomed.
Problems tenants ... yes especially at lower end of the market.
At current prices , will be negative geared . Only just cash flow positive on prices we paid .
See Change
Problems tenants ...
yes especially at lower end of the market. At current prices , will be negative geared . Only just cash flow positive on prices we paid .
See Change
Yes Logan does have a bit of a reputation however Syvergy painted a fairly accurate picture from what I know of it as have only been in Brisbane 3 years. Places can change in time where I live was once a place where only the brave trod apparently yet yuppy vill now.
It may be a good idea to interview a few property managers when here as I guess this will be the way you manage it. If you can find a good one this is what will count in no matter what area you buy.
A good property manager should be dilegent with determining which applicanat to select. They should also do regular checks of the property and provide feedback reports. This does not necessarily prevent things going wrong however should hopefully mininmise it
It may be a good idea to interview a few property managers when here as I guess this will be the way you manage it. If you can find a good one this is what will count in no matter what area you buy.
A good property manager should be dilegent with determining which applicanat to select. They should also do regular checks of the property and provide feedback reports. This does not necessarily prevent things going wrong however should hopefully mininmise it
Ummm....tis okay I suppose as long as you don't go charging too much rent thus causing your tenants to fall a month behind in their payments and who in desperation decide to alleviate their angst by blowing you or your PM away!!!!
(Refer to today's news; sorry I only caught the tail end of the report but it wasn't pretty for the Logan PM from what I heard)
Here is a link to story
Was a month ahead in fact
http://www.abc.net.au/news/newsitems/200701/s1825347.htm
Also
http://www.news.com.au/story/0,23599,21044279-1702,00.html
Was a month ahead in fact
http://www.abc.net.au/news/newsitems/200701/s1825347.htm
Also
http://www.news.com.au/story/0,23599,21044279-1702,00.html
Hi ger,
Most of the comments/feedback so far have about Logan been made from a distance. Actually, closer to the ground, in reality the stigma attached to Logan is somewhat dated.
Yes, the media frenzy goes into overdrive when there are newsworthy events happening in Logan. Unfortunately this emphasis will be mainly on negative news stories. Other districts such Gold Coast, Kelvin Grove and Brisbane CBD are also currently in the media spotlight regarding crime, but these stories don't carry the same biased reporting that is used for Logan.
Over the last few years a lot of gov/council money and time has been put into infrastructure improvements for Logan such as transport, services, shopping centres, parks, beautifaction, urban renewal etc.
The suburbs of Springwood, Slacks Creek and Loganholme with easy access to both M1 highway and Logan Motorway are business centers that have and are continuing to undergo development eg. new Logan IKEA superstore, revitalised Logan Hyperdome, redevelopment of Springwood CBD, Busway from Brisbane CBD to be extended to Logan Hyperdome etc.
The QLD government has identified Springwood as one 11 Principal Activity Centers within the Greater Brisbane district. See map 9 in the attached link:
http://www.oum.qld.gov.au/?id=478
These are just some of the many reasons why I and others personally known to me, have and will continue to invest in Logan property.
Watching this area develop and mature over the years, has convinced me that there is excellent potential for long term CG growth.
Cheers,
AnneDe
Please note the above is based on my observations, research and opinions only.
Four years ago we bought a couple of townhouses in Rochedale South. Since then, we have had CG as well as significant increases in rent.
Our tenants have been excellent; we have looked after them, and they in turn have looked after our properties. Mind you , it helps to have an efficient PM.
I would certainly invest there again.
RK
This is my opinion only; please do your own reaearch.
Our tenants have been excellent; we have looked after them, and they in turn have looked after our properties. Mind you , it helps to have an efficient PM.
I would certainly invest there again.
RK
This is my opinion only; please do your own reaearch.
G'day AnneDe,
Of course, the recent horrific event re the tenant and the RE PM is not the kind of news that will build any bridges. Fortunately, this kind of event is not the norm.
Re Logan as an investment, I'm still seeing values rising (though slower than before) and values are approaching an amount that will quickly start to compare with other properties within the 15Km radius of Brisbane, or the Bayside. As such, people will likely turn to those areas in preference.
Of course, the GC corridor is becoming more and more valid. This "corridor" was a dream 20 years back, but, with the grand work done some 4 - 5 years back on the freeway, it is fast becoming reality. And Logan is part of that corridor. But, for me, Logan is appearing to be "full value" (but still with a gross rental yield ~5%, and it might be this latter figure that continues to attract investors from Southern states).
As always, if your area is returning 3%, and a far-away place is getting 5%, this (alone) is NO reason to invest in that far-away area without a spot of due diligence - there may be very good reasons for the higher return (e.g. lower Capital Growth for one ...)
Regards,
PS all of the above is my opinion only.
Hear, hear. My PPOR has been in Kingston for ~22 years - and we have had a relatively undisturbed lifestyle there. And, I agree that the Logan City Council has spent some serious $$ in building up Logan over the last 2 - 3 years.
Of course, the recent horrific event re the tenant and the RE PM is not the kind of news that will build any bridges. Fortunately, this kind of event is not the norm.
Re Logan as an investment, I'm still seeing values rising (though slower than before) and values are approaching an amount that will quickly start to compare with other properties within the 15Km radius of Brisbane, or the Bayside. As such, people will likely turn to those areas in preference.
Of course, the GC corridor is becoming more and more valid. This "corridor" was a dream 20 years back, but, with the grand work done some 4 - 5 years back on the freeway, it is fast becoming reality. And Logan is part of that corridor. But, for me, Logan is appearing to be "full value" (but still with a gross rental yield ~5%, and it might be this latter figure that continues to attract investors from Southern states).
As always, if your area is returning 3%, and a far-away place is getting 5%, this (alone) is NO reason to invest in that far-away area without a spot of due diligence - there may be very good reasons for the higher return (e.g. lower Capital Growth for one ...)
Regards,
PS all of the above is my opinion only.
In January when this post started, White Knight real estate agency had just sold 2 basic highset properties in Logan for approx $175,000 each. 3 months later … “bargain” in Logan is now anything under $240,000.
There is a scramble amongst buyers for properties in Logan right now forcing prices to jump between 20%-30% in 3 months. Rents continue to defy gravity so that entry rents for 3 bed highsets are now $240 per week.
I can smell the stench of logan with its lower socio economic baggage and crime ... all the way from my safe middleclass vantage point in sydney. Yeah, it stinks all right.. and it aint gonna go away in a hurry. But I have learnt over the years that the property game punishes savagely those who try to play with preconceived prejudices and biases towards a suburb. I say.. Play the numbers, not the man – and be surprised, the stench isnt too bad when the dollars roll in.
WB
There is a scramble amongst buyers for properties in Logan right now forcing prices to jump between 20%-30% in 3 months. Rents continue to defy gravity so that entry rents for 3 bed highsets are now $240 per week.
I can smell the stench of logan with its lower socio economic baggage and crime ... all the way from my safe middleclass vantage point in sydney. Yeah, it stinks all right.. and it aint gonna go away in a hurry. But I have learnt over the years that the property game punishes savagely those who try to play with preconceived prejudices and biases towards a suburb. I say.. Play the numbers, not the man – and be surprised, the stench isnt too bad when the dollars roll in.
WB
I think you'd be lucky even to find something decent and reasonably priced. R/E Agents are selling even before being listed on the internet. Properties are going the day they get it.
I have been trying to buy soemthing for about 2 mths now in that area.
Goodluck.
Btw, for an IP, Logan is brilliant. Loads of renters there and new rentals are yielding quite well. Obviously, there are lots of existing renters there keeping the rents low but it's actually gone up quite a bit. A $150k townhouse with
$5k reno can get $230+ p/w.
AS an investor I agree with Waverlybay. If I had been able to buy there 2 mths ago I would have done quite well already. The longer I wait the more expensive it is.
I have been trying to buy soemthing for about 2 mths now in that area.
Goodluck.
Btw, for an IP, Logan is brilliant. Loads of renters there and new rentals are yielding quite well. Obviously, there are lots of existing renters there keeping the rents low but it's actually gone up quite a bit. A $150k townhouse with
$5k reno can get $230+ p/w.
AS an investor I agree with Waverlybay. If I had been able to buy there 2 mths ago I would have done quite well already. The longer I wait the more expensive it is.
G'day Sue78,
Is the rest of Bne so over-priced? Or are there so many at the lower end struggling to buy? I'm not sure.
For a bit of perspective, my PPOR in Kingston was valued at $95k in ~1990 - then followed a dearth in values - by 1992, it was worth $75k. THEN, the values remained pretty flat for several years. By 2000, Bne was starting to see "a bit of a lift". (Finally, after 10 years in the doldrums...)
Early 2003 it was valued at $125k, but by Dec 2003, it valued at $175k (but this was Bne's "boom time" where ALL properties rose astronomically).
Since then, growth had been almost constant, at ~6% - until the last month or three. All of a sudden, my $200k PPOR seems to have assumed a value approaching $240k+ Mind-blowing, as I had pretty much accepted that Kingston was "fully valued".
All I can think is that I ignored the supply/demand curve (mind you, I was never planning on selling "PPOR" anyway, so wasn't concerned either way). But it has still come as a shock to me.
In essence, I guess I really don't know where Kingston will "finish up" after all. I hold other IP's in other areas - based upon THEIR current value, I can't see more upside in Kingston - but then, maybe those others are UNDER-valued!!
It seems Bne has a lot going for it - maybe I should leave it at that,
Regards,
Well, here I am with egg on my face. Only 3 months ago, I stated I couldn't see how things could keep on growing in Logan. But now, 3 months later, my PPOR seems to be valued approx. $40k higher than in Jan 07 - I find it unbelievable.
Is the rest of Bne so over-priced? Or are there so many at the lower end struggling to buy? I'm not sure.
For a bit of perspective, my PPOR in Kingston was valued at $95k in ~1990 - then followed a dearth in values - by 1992, it was worth $75k. THEN, the values remained pretty flat for several years. By 2000, Bne was starting to see "a bit of a lift". (Finally, after 10 years in the doldrums...)
Early 2003 it was valued at $125k, but by Dec 2003, it valued at $175k (but this was Bne's "boom time" where ALL properties rose astronomically).
Since then, growth had been almost constant, at ~6% - until the last month or three. All of a sudden, my $200k PPOR seems to have assumed a value approaching $240k+ Mind-blowing, as I had pretty much accepted that Kingston was "fully valued".
All I can think is that I ignored the supply/demand curve (mind you, I was never planning on selling "PPOR" anyway, so wasn't concerned either way). But it has still come as a shock to me.
In essence, I guess I really don't know where Kingston will "finish up" after all. I hold other IP's in other areas - based upon THEIR current value, I can't see more upside in Kingston - but then, maybe those others are UNDER-valued!!
It seems Bne has a lot going for it - maybe I should leave it at that,
Regards,
Hi Les,
Im with you. My family (grandparents) have owned property in Logan since the early 80's.
Until a few years ago it was a terrible investment with sideways values for almost 20 years.
I guess the next question for now is, after this price correction will we have another 20years of sideways growth?
Who knows.
Im with you. My family (grandparents) have owned property in Logan since the early 80's.
Until a few years ago it was a terrible investment with sideways values for almost 20 years.
I guess the next question for now is, after this price correction will we have another 20years of sideways growth?
Who knows.
My first post and nobody got back to me haha!!! I was recommended to this site with high regard...
Anyway, Logan may be a good area but i THINK THE PRICES ARE RISING RAPIDLY... i WAS LOOKING AT HOUSE/LAND PKG FOR $340K (700SQM) 4 BDR, 2 CAR ETC... however I have now been recommended this is too much!
Any ideas/input from the forum??
Thank you for any advice!!
Anyway, Logan may be a good area but i THINK THE PRICES ARE RISING RAPIDLY... i WAS LOOKING AT HOUSE/LAND PKG FOR $340K (700SQM) 4 BDR, 2 CAR ETC... however I have now been recommended this is too much!
Any ideas/input from the forum??
Thank you for any advice!!
hey ritchie - I agree! The brisbane market is very very amazing right now..I've heard some inside info from a mate at a blue chip engineering firm who said that they see over 1 million people moving to brisbane in the next 4 years..yikes...! It's like the dot com boom of 2000, but in real estate!
I'm looking at other suburbs. Follow the train lines...stay northside..or bayside..I'm gonna get a cheap flight from sydney soon and see for myself. Buy an all day train ticket and see what suburb looks nicest in the outside (20km range) and what I can get under 300 000k.
Then I'll start to put in offers, If I feel like I make a move.
Cheers
stay Lucky!
I'm looking at other suburbs. Follow the train lines...stay northside..or bayside..I'm gonna get a cheap flight from sydney soon and see for myself. Buy an all day train ticket and see what suburb looks nicest in the outside (20km range) and what I can get under 300 000k.
Then I'll start to put in offers, If I feel like I make a move.
Cheers
stay Lucky!
