Reply: 2.1.1.1
From: Tibor Bode
Hi Henry,
I might reasoned in the wrong way regarding to the areas I have mentioned. Yes, Logan used to have quite a bit of reputation (my local friend was absolutely amazed when I bought my first property there) due to lots of public housing, high unemployment rate,
drugs, etc, it had it all. The point I tried to make that these suburbs with the "questionable" reputation are changing to the better socio economically, some has quite well developed infrastructure or desirable location, or something else going for it AND they are not far from areas that HAD a good run in prices, so these less desirable areas start to be attractive. In Sydney, just think of the HILLS districts. Obviously some of them are vey expensive and as people can not afford any more to buy (sometimes even to rent) they move to the next affordable area, which is no so good, but still good. These areas start to improve and the prices are going up. I personally bet very heavily on Logan after lots of careful research and while hearing, a reasonable ignorance of the locals opinion about the "bad" reputation, but rather focusing on the positives (very good infrastructure, Parramatta type location - but about 15 years behind Sydney, reasonably business oriented and supportive council, young aged population, high percentage of renters, increasing income and socio economic status, lack of free land available for new developments, lack of interest by developers - lower profit margins than other parts of Brissy, possibility of buying properties well below replacement cost, high rental yields compare to the 10 years average yield, AND the relative mispricing of the shire within Brisbane (I use some figures what the price difference ratio should be between a "desirable" location and an "undesirable" one), as well as some other things I just can't think at this moment.
So my apologies if I misled you or someone by indicating that these suburbs really undesirable as an investment. The intention was to point out that they are turn arounds and I personally would expect quite a good run in each due to the reasons mentioned before.
BUT please don't take my word for it, check the facts and figures yourself via web sites (there are excellent and reasonably priced QLD government stats available), talk to lots of RE agents in the area and also talk to other investors, check the local council's x year plans, planned developments in the area, etc, etc, basically do your due diligence. You will also learn heaps while you are doing it and it is also fun.
Anyway, sorry again for the the misunderstanding.
Tibor