Warning to Property Investors: Affordable Logan May Come with Heavy Price Tag

As Greater Brisbane continues to attract property investors due to historically low vacancy rates, property investors continue to eye the Logan area as an affordable entry point. Brisbane continues to buck national trends with a 64% growth rate since the pandemic and is projected to grow a further ten percent in the coming year. At under 1% vacancy for both houses and units, and a whopping 24.8% rise in unit rental returns, Brisbane continues to attract investors. But, the cost of the elusive inner ring and the 15kms ring has forced both investors and tenants further afield. Which brings us, and them, to Logan.

Re-Imagining Logan

The halfway point between Brisbane and the Gold Coast the city of Logan has traditionally been associated with a low socio-economic cohort and crime. As the demographic changes, and Logan welcomes more and more middle class families, investors face a myriad of challenges re-imagining a tainted post code. Despite well built homes, excellent schools, transport and shopping infrastructure, the area has been slow to shake off its “undesirable” label. With so many suburbs in the Logan area on the move, knowing how to pick a boom or bust is pivotal to a successful property investment.

A warning from the Brisbane Building Industry

Logan is a big area with a long history. The Logan City Council area extends 957 square kilometers and includes more than 70 suburbs. Among them are vast rural properties, dense industrial hubs and sprawling national parks. Logan is not “one area”. Logan’s first explorations go back to 1826 and first settlement in 1841 – since then the area has been “built piecemeal”, from a sugar and cotton farming HQ to urbanization in the 1960s. In short, investors in Brisbane’s Logan area could be looking at a 150 year old heritage listed masterpiece, a mid-century asbestos nightmare, or, the famous Logan “Three Bed Brick” landlord special.

“It’s hard to predict what you’ll get when you inspect a Logan property. The historical sites may be rare but they come with a myriad of issues, from flooding to termites. The biggest issue is long term low cost rentals. That’s where investors make the costliest mistakes in Logan” said Andrew Mackintosh, Pre-Purchase Building Inspector Brisbane.

Logan’s Shoddy DIY Pandemic

First home buyers and landlords are lining up to drop offers of $800k plus, for long-term, low-rent investment properties. Low rent landlords aren’t well known for their property maintenance and quality renovations – creating a potential money pit for investors. So which suburbs require a keen eye at the open home?

Springwood property inspections – built solid, renovated cheaply. Look for poor quality renovations and extensions.

Logan Central property inspections – formerly South East Queensland’s cheapest rent and highest crime rate, look for issues with tenant damage and long term neglect.

Beenleigh property inspections – Beenleigh is a hotchpotch of old heritage listed buildings and cheaply built ex housing commission dwellings. While maintenance issues may be lesser here, long term tenant damage is a big red flag

Sunnybank property inspections – Sunnybank is at the high end of the Logan property market and many properties include architectural design and extensive renovations. Look for any potential issues in the design that could add up to massive unexpected costs.

Greater Logan property inspections including South and Southwest Logan along the River. Loganholme, Bethania, Loganlea, Waterford and Waterford West are all very high on the investor’s list due to affordable prices and in some cases, illusive large urban blocks. The Logan River snakes its way through these high demand investment suburbs so inspections should include evidence of flooding and flood history. Waterford and Waterford West in particular, were the flagship first home buyer’s first choice investment suburbs of the early 2020s, prior to the 2011 floods. Inspections in these areas may include relatively new homes, that may have sustained damage during the last decade of flooding issues.

Daisy Hill property inspections – Daisy Hill is one of Logan’s top choices for families. Not just its easy access to transport and schools, but the Daisy Hill Conservation Park with its cute cuddly koalas, beautiful scenery, solid brick homes….and termites. The conservation park is well known for wreaking havoc at building and pest inspections thanks to insect infestations and intrusive plant life and roots. If you’re inspecting a property on the eastern side of Daisy Hill, you may need to budget for a separate pre-purchase plumbing inspection.