Hi all – I’m in the process on buying a townhouse in Eagleby Qld, which is the first property I’m investing in outside of NSW.
Any thoughts on this area and prospects in future? The property I am buying is a townhouse inside a secure complex very near to Eagle Tavern and a shopping centre across the road. I am aware of the housing commission history of the area and the socio-economic factors however the reason I am investing in the area is because:
1. Quite low vacancy rates
2. Good rental yields
3. Location is mid-way between Brisbane CBD (about 25 mins away) and Gold Coast (about 30 minutes away I think)Does anyone familiar with the area offer their thoughts on Eagleby so I can be conscious of the key things to keep in mind?
Best regards,m
AjayPersonally, I would have gone across the highway to Beenleigh. New town square going in, railway station there, height limit increased on high-rises etc. However, should be very good yields at Eagleby. What returns are you getting? As long as you have good tenants, I think you’ll do ok. The entire Logan area seems undervalued to me, but that’s just my impression…
Good luck!
Oh, check proximity to high voltage power lines, and flood zones. :)
Hi Originalsinner – I am buying for $199100 and getting $290 p/w. Tenant seems alright.
Rates and strata altogether is around $5900 annually.
What do you think are the capital gain prospects for the area of Eagleby?cheers,
ajayCapital gains? Don’t know. Really not sure. I’m hesitant to comment on areas I have not researched. All I can offer is that I think that it will go up eventually, and with a positively geared property you can presumably afford to wait. Does seem currently undervalued though. I mean, I’ve just had a quick look at what they’re selling there. When they’re selling houses there with asking price of $229,000 with rental returns like that, it can’t be too bad, can it…
Hi Original Sinner yep my thoughts too – currently my annual loss would be around $2500 however over time (as rents hopefully increase), it will break eevn and ultimately be positive cashflow and you are right I can afford to wait.
Does seem undervalued and from reading various property magazines and general research I’ve been led to believe that Logan City and surrounding areas look a little undervalued and there is population growth in those areas.
cheers
Hi Ajay,
That sounded like a pretty good gross return, until the body corp costs hit. Rates shouldn’t be much more than $2k, so the body corp costs must be $4k? What do you get for that? Is there a security guard, or just electronic gates? Seems way high….Re Eagleby, I have always thought of it as a “cul-de-sac area”. That has both plusses and minuses. See, no-one drives through Eagleby to get anywhere else – mostly, you just drive past the entrance as you hammer down the M1. I often drive through Beenleigh for one reason or another, so am more up-to-date with “what’s going on” there – not so Eagleby. Then again, cul-de-sac areas are less troubled by traffic, so that is a plus. And it was originally a low-cost area, so anyone can afford to rent or buy there. Over time, “bad news” fades into oblivion as more people end up buying their homes and tarting them up. Eagleby too is getting better – but it still lacks the infrastructure that Beenleigh has. Also lacks a “drawcard” to bring people in.
With yields growing, it is in that part of the cycle which leads on to capital growth (at which point yields will plummet – not in $$ terms, but in % terms). How far away is that? Well, first, let’s see where/when Brisbane peaks – hasn’t yet – and then add up to two years. I live in Logan – also a low-cost area – and have seen my place grow 600% in 22 years. Settled back a bit since GFC, but a lot of interest and development starting up now – more good times to come?
Benny
Hi Benny,
Rates and water are $800 p/q (so around $3200 per year) and body corp around $620 p/q ( so around $2500 per year).
There’s a gate at the front in a secure complex and the complex is relatively new.. build around 2007 on fryar road. It has the Eagle Tavern and shopping centre across the road.. it’s on fryar road.Yield is what got bme looking at the area in the first place – and hopefully over time we’ll see some capital growth there. Lets see if there is more good times to come.
Cheers,
Ajay-
This reply was modified 10 years ago by
ajayayyar.
Its an area with long term potential, due for some growth just be aware it typically gets capital growth run a bit later in the brisbane and gold coast cycle. I used to have several in the B area. I still have family with a few around here and I tell them not to sell now as next 5 yrs should see some growth I reckon. You can track the median house price from highs on gc and bris down all the way and Beenleigh/Eagleby is the low point in the middle of that corridor. Plusses are it a key infrastructure corridor, yatala industrial has continued to grow, can commute to both cod’s and its closer to the beach that Ipswich. Negatives, still a big bogan element. Slowly getting population growth and diversity out of logan I have seen, probably helping the vacancy rate a bit. If you can afford a house on a big block, go for it. If you want low entry and low maintenance then by all means a townhouse but as stated by others the numbers quoted seem fair but not a screamer bargain. You should get some nice tax out of it with the recent construction, make sure you do a QS report. Scott from Depreciator is awesome if you need one done.
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I didn’t end up buying this as there was an issue with the building inspection for the townhouse.
Maybe later this year or next year I will try to find something in the Logan City area which I’m keen on looking at
Stick with Eagleby…Gold mine waiting to happen. Its percentage growth and yield is higher than surrounding areas. There is however a benefit that not many suburbs can lay claim to….Eagleby is completely surrounded by water(Albert and Logan rivers) with ocean access available. Riverfront acreages are owner occupied by the most influential people in the Beenleigh area. Stick with Eagleby…Stick with water.
Thanks Kingi – maybe this year.
Stick with Eagleby…Gold mine waiting to happen. Its percentage growth and yield is higher than surrounding areas. There is however a benefit that not many suburbs can lay claim to….Eagleby is completely surrounded by water(Albert and Logan rivers) with ocean access available. Riverfront acreages are owner occupied by the most influential people in the Beenleigh area. Stick with Eagleby…Stick with water.
But the prawns have that white spot disease! I’ve seen movies that start like this… :P
So Ajay, where did you end up buying?
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This reply was modified 10 years ago by
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