Property buyers agent recommending buying in Logan Queensland ,
in Holmview estate near Beenleigh. Offering house and land package from builder
they use in queensland .4×2 on 357m2 block.Brick veneer,ie extnl brick and internal gyprock on timber stud walls.
Concerned there are a lot of rentals percentage in Logan compare to locals .
Plus I may need to go over to see it,which is a nuisance, better than Google maps.
Anyone know the area much. Needing good growth and good return,because of my age 58 ,I live in Perth and need to speed things up, accumulation, I have 3 x rentals 2 are commercial Properties.
Am considering calling agents in area or shire.
There is a lot of infrastructure planned for the area and Brisbane not far away.
The coming commonwealth games will only be a temporary boost to economy.
Lot of industry in the areas around which is good.There is infrastucture planned for Perth as well but could be a while yet.
Thanks,
Ian.Hi Ian,
First of all I would steer very clear from house and land packages in Logan, and run far away from any buyers agent that recommends purchasing them. There is simply no value except for a shiny new product and you will be paying above market value for this ‘privilege’.
Not only that, I can almost guarantee your buyers agent is making a cut from the developer of the H&L so there is definitely a vested interest – and as the buyer, you will be the one paying for this ‘service’.
Logan is a vast area with 64 suburbs – some great and others not so. The key to buying in Logan is to focus on cashflow, buying below market value (distressed stock), and buying established houses with potential to add value through renovation or adding extra rooms/bathrooms etc on certain floorplans.
As for the area itself, being 30kms from Brisbane CBD and 40 kms from Gold Coast, you can still buy 3 bedroom houses on 600sqm+ blocks of land for around $300k that will generate 6%+ gross rental yield. I believe this is becoming a very scarce criteria considering Brisbane is one of the largest cities in Australia
I should disclose that I am a buyers agent myself and buy on average 1 – 2 properties in Logan per week for our clients based on the above criteria.
Happy to chat further if you like
Simon
Simon Loo | www.housefinder.net.au
http://www.housefinder.net.au
Email Me | Phone MeSeeing the title I was going to come into the thread to recommend Simon Loo – but I can see he has beaten me to the punch in responding to the thread.
I’ve had clients work with him and be very happy with the results and know many others who have used his services. Well worth having a chat with Simon.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Property Zest are also quite good – I’m not sure if Karen services Logan but worth checking out.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Ian,
First of all I would steer very clear from house and land packages in Logan
I’d go further than Simon, and say “steer clear of all house/land packages”. Typically they are a “solution” property. The developers have created a house for a family – and the family pays well for that privilege. Over time, the house may value up – but that could be 5 years or more, so not good for an investor who wants to make things happen.
Steve says “Buy problems, not solutions” – and you get paid for solving that problem (whatever it was). It could be that you buy a “worst house in the best street” and do a reno on it, or you purchase a property that allows a divorced couple to “move on” – they often sell at a lower value just to get moving. There are a host of different options to consider. What are you wanting right now? Growth, or Income? With 2 of 3 of your current IP’s being Commercial properties, you might be heavy on Income and are wanting Growth – is that it? If so, I wouldn’t be looking at a H&L in Logan at all – nor even a straight rental.
Someone else said it – beware any Buyer Agent who is trying to sell you “new properties” to the exclusion of all others – they are not a Buyer Agent at all – they are a salesman !! A good Buyer Agent will listen to what you want, then go out to help you find it.
Benny
Interesting post, I am surprised that buyers agents would even suggest house/land packages especially because they come at a premium and usually aren’t negotiable from what I know.
They are a property wealth group probably should not name them here,but what they showed and said is fine but has flaws in the proposal.
I just told someone else that apart from that said above,the banks will stop it into the 3rd property possibly or the next because of the negative gearing. They push factor of depreciation etc the tax advantages .Some people are chasing that sort of thing but dont realize later implications.It is a nice idea new property and virtually nothing to worry about from faraway in Perth for maintenance.
IanHi Investor,
Interesting post, I am surprised that buyers agents would even suggest house/land packages especially because they come at a premium and usually aren’t negotiable from what I know.
Good point – there might be occasional situations where a H&L package can be sold at a discount – e.g. where a builder might be in financial trouble and needs to liquidate urgently. Or perhaps a developer is finishing up in an area after the whole development is complete – they might want to “close up shop” and move the salesman onto their next development site, thus they may sell the last handful of packages at some kind of discount just to “move them along”.
But, as you say, they usually aren’t too negotiable – and even if they are (as mentioned above) their negotiations are starting from a high point, so the “sale price” may still be pretty high even after the discount. Give me a “problem property” any day !
Benny
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