Woodridge/Logan Central or Mt Druitt/St Marys???

[CHam]

Hi fellow Somersofters,

We are hoping to get some general advice or feedback from all of you more experienced property professionals out there

Currently I am looking at options for our next IP - we currently have 2 but the main premise for the third is that it needs to be cashflow positive or at least neutral, as our other 2 are negatively geared.

The other limiting factor is that we can only spend up to $250k, which is the primary reason that we are looking at Mt Druitt/St Marys in NSW or Logan/Woodridge in QLD.

Any feedback / advice on either?

Unit or house?

Thanks all!!!

 

[mikezen]

I would be going for western syd as it looks like its hot and growing now..but others will fill u in on this.......as for logan, there is still plenty of stock on the market for your price range and much lower buyer activity than syd.... so u can still neg a decent bargain ...rental market is still strong in most parts

good luck

 

[Cherry Pro]

Hi Chams

I think Mount Druitt and its suburbs have already seen some decent increases over the last 2 + years and getting a 3 bed brick and tile house (my preference) with a 7% return at less than $250k will not be easy.

However, you could get quite easily find something like that in the Woodridge / Logan area.

 

[jclegg]

Sorry for hijacking your post but I'm also looking in Logan around the $250-300K mark. The only thing I'm really concerned about is the quality of the tenants. I have read posts on here and also heard (news, media) about how violent it is getting and how hard to get a good tenant it is.

I am going to look this weekend and I will be paying particular attention to the tagging, streetscapes, cars, neighbours etc. but still concerned that things are worse than I thought? Or is it just a small area and most of Logan is ok?

I am interested to hear peoples views on this who have IPs in the area?

thanks
jc

 

[tobe]

ive had an IP in woodridge for a couple of years now, and have had at least 3 tenants run out with rent owing. The landlord insurance pays up every time, though it impacts cashflow having to wait.

 

[jclegg]

Thanks Tobe. Do you think the area where your IP is located is a bad street or is it just Woodridge in general?
Did you have a REA? Do you think there was anything which could have been done to prevent this?
Sorry for all the questions, I'm not familiar with the Qld laws yet as I'm in Melb and I would be relying on a REA to ensure things ran smoothly (which I know they don't always)

 

[Anthonyj]

Interested to see what your opinions are on the ground, as I am looking into the area too.

I did speak with an agent today who lines up government leases for asylum seekers. It requires setting up as fully furnished (7-10k) and the lease is $430 per week. 10% for management. You pay the electricity tho, which could get crazy. This example was for a town house for 169k.

Higher risk for higher return.

 

[jclegg]

Hmmm, I also spoke to a REA who told me all the tenants are great
I'm sure they will all say that, after all, they're not the property manager, they're only after the sale, after that who cares!!

I'm sceptical about the fully furnished places, however I am going to look at one just to see the state of the furniture

I will update after Sat.

 

[DaveM]

I would look at Marsden and Waterford West over Woodridge. Not much higher price but better suburb.

 

[jclegg]

Thanks DaveM, I do have one in Marsden and it will be interesting to compare the areas. I live in Melb and the things we look for in a rental such as proximity to transport may not be quite the same in Brisbane. It seems the areas furtherest from the train are more attractive

 

[tobe]

my woodbridge unit is 5 mins walk from the shops and trainstation, and 5 mins drive to the freeway. Its been leased to new immigrants, and there is some kind of charity/government department that guarantors them on the first term of the lease. It does not need to be furnished. They then usually sign up themselves for a further term, or put their relatives or friends on, and thats when we get tenants doing runners.

I got insurance, and its cashflow positive, so Im not too fussed.

 

[C-mac]

I'd love to hear from those who know this area well from an investment perspective. It is all good and well to have a cash flow + property held in say Woodridge, QLD; but does anyone with experience in this area believe there to be future CG potential a la Mount Druitt, NSW and surrounds?

 

[The Dark Knight]

I'd love to hear from those who know this area well from an investment perspective. It is all good and well to have a cash flow + property held in say Woodridge, QLD; but does anyone with experience in this area believe there to be future CG potential a la Mount Druitt, NSW and surrounds?

I personally think its reached its maximum growth in this market cycle. I live nearby and invested in St Marys/Kingswood. I go to open homes just to see what properties are selling for and if there is any bargains still around and its crazy atm with the low interest rates. I was at a open home(2 bdr unit) at St Marys(close to Mount Druitt) two young couples buying their first PPOR were already putting in offers above the listed price 10 minutes into the open house. A great time to sell/not a great time to buy. I think when interest rates rise you might be able to pick up some bargains and the market will cool down.

 

[NBS]

I have one house in Woodridge, standard place for area. Two tenants so far since 2010. Rent is $365 per week. With the average rent depending on property between $290 - $320 I'm happy with this.

Both tenants have paid on time all the time. The current tenant have signed on for another year and I have kept the rent the same.

Only issue I have had is
First tenant allowed a dog inside (no pets inside in lease)and it chewed my door jamb which they paid out of there bond. No biggie took an hour to fix including painting.

If the right place came up I would consider buying again.

Brian

 

[Beanie Girl]

Cham, you missed this beauty dual living which sold in Jan 2014 for 240K

http://www.realestate.com.au/property-house-qld-kingston-115633211?rsf=emailalert-propdetails

I had my eye on this one and even recommended it to a fellow forumer. Pity she didn't take it up. I'm so surprised by the price, I thought it would go for more. I think you can definitely get more than $310 rent per week for it now.

I have 3 IPs in Logan, getting $550, $530 and $450 rent per week. 2 in Logan 4114.

Cheers,
beanie

 

[TMNT]

Cham, you missed this beauty dual living which sold in Jan 2014 for 240K

http://www.realestate.com.au/property-house-qld-kingston-115633211?rsf=emailalert-propdetails

I had my eye on this one and even recommended it to a fellow forumer. Pity she didn't take it up. I'm so surprised by the price, I thought it would go for more. I think you can definitely get more than $310 rent per week for it now.

I have 3 IPs in Logan, getting $550, $530 and $450 rent per week. 2 in Logan 4114.

Cheers,
beanie

um no offence, but where does it say dual living? dual living is being cracked down on, unless its legal height, $240k seems about market price to me, interior is neat and almost new

your 2 in logan rents seem high, are they fully furnished or dual living

 

[Beanie Girl]

um no offence, but where does it say dual living? dual living is being cracked down on, unless its legal height, $240k seems about market price to me, interior is neat and almost new

your 2 in logan rents seem high, are they fully furnished or dual living

Hi TMNT, dual living doesn't necessarily mean you have to rent out top and bottom separately as separate tenancy contracts. 'Dual Living' can mean you have a teenager or elderly parent who wants to have their own separate space downstairs.

You won't get this type of property being quoted at 240K in this market in Logan anymore. Even 3 bedrooms/1 bathroom are being quoted for 279-299k at least. How the market has hotted up in the last month or so!
I hope I didn't contribute to it, hahahaha!

But for the record, yes, you are right, TMNT, 'dual living' in the sense of separate tenancy is being cracked down in Brisbane City Council suburbs, ask RPI. Not in Logan City Council suburbs. In fact the Draft Logan Plan regards dual living(dual key), dual living (2 houses on one title, duplexes, split-levels) and granny flats in a positive light (if all stays true to the draft).

No, my rentals in Logan are not fully furnished or 'dual living'. They are single tenancies. No separate tenancies in any one house even though 2 houses are legal height and have separate entrances.

 

[Cherry Pro]

Great yields, Beanie Girl !

We have not had any issues with our tenants in 4114 too.

 

[saiman]

ive bought 6 in the logan area in the past 18 months, 5 standalone houses + 1 townhouse...all sitting around 7.5 - 8% yield, townhouse 9.5%

all tenanted from day one....normal maintenance issues here and there....one case of "professional tenant" all covered by insurance....

my advice is to make sure you do your DD on suburbs (I only have one in central Logan suburbs) and always buy well below market value.

As always, cashflow helps stomach problems and not sweat the small stuff

 

[Beanie Girl]

Great yields, Beanie Girl !

We have not had any issues with our tenants in 4114 too.

Thanks Cherry Pro!
Hope your investments in Logan and Brisbane are doing well
We had to do a small cosmetic reno on one of the IPs but I think it is paying off in terms of attracting good tenants.
Yes, my tenants in Logan 4114 pay on time and sometimes pay in advance.
They're normal tenants, sometimes they're listed as a bit messy in the inspection report, sometimes neat.
We had stuff breaking down during the tenancy like electric oven, hot water service and dishwasher but we suspect it's probably due more to age than any deliberate mishandling. Why would the tenant want to inconvenience themselves?

Saiman, Wow! 6 IPs in Logan in 18 months. 5 standalone houses and 1 townhouse, that's pretty much outstanding! Congrats! Are you more into the Beenleigh, Waterford West area?