- ccpatParticipant@ccpatJoin Date: 2010Post Count: 9
thanks for pointing me in the right direction this is my first post.
I have been reading the forums for the past few months and have found them very helpful.
Bur right now I need some advice
My Husband and I are looking at buying an IP in logan Central QLD
and are amazed and how much the prices have dropped and how quickly offers are accepted.
I am afraid that we are missing this something most of the properties that are being sold are owned by investors,
Can anyone explain why people are fleeing the area? is it a good or bad decision to enter the area right now
Hope someone can shed some light as I feel we might be making decisions in the dark
CheersRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Might want to read up on the local crime statistics first.
Then talk to a couple of property managers and ask them how they find the area.
Personally i dont have any of my properties in Logan and dont intend to start but thankfully that is me and everyone is different.
Yours in FinanceBluegrassParticipant@bluegrassJoin Date: 2009Post Count: 73
There are a couple of reasons people ‘investors’ are fleeing Logan Central, but I believe that the main underlying one would be that they cannot see the property they purchased getting back to what they paid for it anytime soon, we are talking years!
Logan, Marsden, Browns Plains, Crestmead etc. were all sold out by Marketers, in other words people bought them from Marketing Groups, most likely from a seminar or telemarketing phone call to a presentation, at a price that had $40,000+ marketing fees in them.
Most of these properties are well built and most will still have some depreciation attached to them.
If you are really wanting to get into the IP business ‘and who does not’! may I suggest you either talk to a builder and have a home built for you or check the web and have a look if there are any home and land packages available.
N.B. As of the 1st of August the Qld. Government is giving away $10,000 to anyone that purchases a new home and there are some builders adding more to help keep there subbies in work.
Always remember that when purchasing an investment property, it is about the figures, not where you believe you want to own a property.
Look at the house as a ‘Brick Money Box’!
P.S. http://www.raspinvestment.com.auDeal MakerParticipant@deal-makerJoin Date: 2011Post Count: 33
We have a number of property related businesses and have been operating for the past 12 years in the Brisbane area. Out of the hundred plus properties that we have acquired, at least 60% of those have been in the Logan area.
1. You asked the question why is there the perception that most people are fleeing the area and that most the properties are being sold by investors. (a) My personal opinion and what I hear around the traps is that people are selling their investment properties in an effort to reduce their debt exposure. (b) You might find that the majority of investors in Logan area own more than one investment property. (c) Also I have experienced where in an attempt to reduce an investors debt load they will put all their properties on the market to sell (up to 4 in sum case) and when they have sold the required number of properties they will then take the remainder of the market. Therefore, in effect over flooding the market with rental properties. (d) Logan Central is a high rental area, so you also need to take that into consideration as well.
2. Bluegrass was correct in saying that marketeers sold properties for inflated prices a number of years ago, but I will put that into some context and share with you how that came about as it only happened to a small proportion of properties in those suburbs (new houses) and not to the majority (which consists of existing homes).
This event was mainly triggered by the New South Wales government back 4 to 6 years ago introducing double stamp duty in New South Wales (you paid stamp duty when you purchased and also paid stamp duty when you sell). For a period of time this bought Southern investors up to the Logan area in quite large numbers to buy house and land package investments. It was amazing at the time to see suburbs seem to grow in the number of houses by 8% – 10% in a very, very short timeframe.
When we enquired about these new properties, the local tradesmen said they would not be interested in the price or the quality of the product and they definitely not wrong there. The comments were basically "These are priced Southern investors", "what they don't see, they don't know" and "these houses have been slapped up as fast as we can with the bare minimum concrete and timber". This mini boom on new house and land investment packages first with the New South Wales government pulled the double stamp duty legislation. The suburbs with is mainly occurred were Crestmead, Marsden, Waterford West, Logan Reserve, Browns Plains and I think Regents Park to a lesser extent.
3. From my experience at the moment and probably what you've seen as well is that it might be a better option to purchase an existing home than build a new one.
In the past I've found from my experience that when the government have boosted the first home owners grant for new homes (it has happened twice) the price of land and the price of building a house have magically gone up and the net effect is that you are paying more for the house with the grant boost than you were previously due to mainly supply and demand. With existing homes what you see today is what you're buying today and you are getting the houses for a good price compared to what they were selling for two years ago. A Logan example, what you would have paid $290,000 for three years ago you can pick up for $235,000 now with a bit of bargaining involved.
4. As I said earlier we purchase all over Brisbane and for the style of home be in Logan the rent returns are fantastic. When comparing some rental properties our house in Ipswich rents for $275 a week, one in Caboolture rents for $285 a week and a one in Logan rents for $310 a week.
5. In Logan, I always found a good demographic mix of people and not reliant on a couple of industries to survive. Also the Logan area this entry located not only to Brisbane and the Gold Coast but also to switch as well and it has got good infrastructure on the road systems.
I hope this helps, if you any questions feel free to shoot us an e-mail.