It’s been a while since our last suburb review and now that we’re back, we thought of putting the spotlight on a location that used to have a not-so great reputation but lately been garnering the interest of property investors.
We are talking about the large council area of Logan City and its group of suburbs located South of Brisbane, about 20 kilometres from Brisbane CBD.
In this suburb review we’ll take a look at Logan City and dissect the factors that had investors buzzing about the area in the past 6-12 months. Included in this report are:
- Demographics of one of the suburbs in Logan City, Marsden
- The numbers on the investment suburbs of Logan (median rate, vacancy rates, etc)
- The Facilities
- Sample Properties
- Summary
We’re happy to review great suburbs but remember—not all recommended suburbs, property or investment strategy will always be right for everybody. It all boils down to one’s investment goals so remember to ask yourself: What is it that I want to achieve and what is my timeframe?
These questions will be your guide where and what type of property you should buy.
The Location
(http://maps.google.com.au/, accessed 13/11/2014)
The Demographics
As in our previous suburb reviews, we present foremost the demographics of the area. Your investment property is a product—therefore it is important to know whether your product will suit the needs of the people in the area. Knowing the location’s people, where they work, how they travel to work, etc. can help you decide whether the location is suited for your requirements and help you locate the type of property that has appeal to such demographics.
Population
According to the 2011 Census data, Marsden had a population of 11,278., with median age of 27 years old.
Marital Status and Family Composition
The majority of people above 15 years old in Marsden were single (42%) followed closely by married people (41%). Families are composed of couples with children (47.8%), couple without children (25.4%) and one-parent family (25.1%).
Country of Birth
Most common residents in Marsden, next to Australians (65%) were from New Zealand (10.5%), England (2.7%) and Samoa (2.1%).
Occupation
People in Marsden mostly work in blue-collar occupations. Most common were Machinery Operators and Drivers, Labourers, Technicians and Trades Workers.
The top industry of employment is Road Freight Transport, Cafes and Restaurants, and Supermarkets and Grocery Stores.
Travel to Work
In Marsden, as in the rest of Australia, the predominant method of transportation to work was by car as a driver or passenger. Only 6.5% use public transport.
Housing
Properties in Marsden are mostly separate houses (90.5%) with 3 bedrooms, followed by semi-detached, row or terrace house or townhouses. Around 43% of these properties were rented whilst 39% were owned with a mortgage.
The Numbers
Below is a table of statistics in key investment areas in Logan:
One of the factors that work for the suburbs of Logan is its affordability considering it is a mere 19-kilometre drive from Brisbane CBD. One can pick up houses here on good sized land for under $300k.
The Facilities
Logan is well serviced by freeways, on a train line, had a university (Griffith University) and a Tafe, large hospital (316-bed Logan Hospital that’s undergoing expansion), major shopping centre (Hyperdome) and suburban shopping centres.
There’s also a draft of Logan City Planning Scheme, indicating area’s plans to grow and develop over the coming years.
Sample Properties
The style of housing in the Logan suburbs includes older style high set weatherboard properties, low set brick and tile from the eighties as well as areas of newer properties and housing estates. Each of the suburbs has a main predominant style, usually based around the era it was built in.
Here are two examples of properties located in Marsden:
| Style: | Low set brick and tile, 2003 build, on 652m2 block |
| Features: | 4 bedroom, 2 bathroom, 1 car |
| Asking Price | $349,000 |
| Purchased for: | $336,500 |
| Rental: | $370pw |
| Key Points: | Good land size, newer house, low maintenance, good depreciation, nice area |
| Estimated cashflow: | Negative $60 per week at 100% LVR. Customer purchased the property at 80% LVR which gave a cashflow of negative $8 per week. |
| Style: | Low set brick and tile, 1992 build, on 660m2 block |
| Features: | 3 bedroom, 1 bathroom, 1 car |
| Asking Price | $289,000 |
| Purchased for: | $285,000 |
| Rental: | $330pw |
| Key Points: | Good land size, was owner occupied, so very tidy and looked after. Add value potential with cosmetic renovation down the track, budget priced. |
| Estimated cashflow: | Negative $26 per week at 100% LVR. Positive $14pw if purchased at 80% LVR. |
Summary
Logan is an example of an investment area that may have received thumbs down from investors in the past but has turned the negative reputation around to become a buzzing area in the past 12 months.
It can be hit and miss when it comes to finding the right property in the right street so I’d recommend caution and an ‘on the ground’ approach or using a buyer’s agent. Buying ‘sight unseen’ here is risky. I’d also recommend getting a good property manager on board, this is the sort of area where you do want to really screen your tenants well and stay on top of any issues. As long as you manage the purchase and the tenants well, this is a good spot currently for low budget investing with good potential.
If you want some assistance, you are welcome to contact Property Zest Buyer’s agency in Brisbane to assist!