The rent more than covers the cost of maintaince and rates etc, as I said those costs are only about 15% of the rent collected.
And in my case I spend about 35% on out goings but that is because it's a unit with high quarterly levys.
Also the Residential Tenancies Act 2010 (NSW) is now in force as of 31 Jan 2011. A few more expenses have come into force. Premises now must be water efficient if tenants are to pay for water usage. Also now we have to have a certificate from a smoke alarm service company to show our place complies with the laws. I now pay $99 per year for unlimited service for my smoke alarms.
So yes we landlords still make money even after all the bills and the best part is that it's one of my easiest investments ever. The rent just drops into my account Month after Month after Month. Sure it isn't a stellar performance rent wise but it is a very safe and secure investment. By the way since NOV 2007 the sharemarket is still over 30% BACKWARDS! Most super funds are still no where near pre GFC amounts but Aussie property just keeps plodding along.
doesnt matter how you see it..
its a friggen bubble
8 - 9 time income is a bubble
invest in it at your peril imho.. but dont deny what a bubble is..
35% is really really high mate, Are you charging market level rent. Don't be afraid of raising the rent, those extra costs need to be pasted on to the customer. I raise the rent on my properties every year with out fail.
another figjam character , well mate im not exactly poor , im well north of 30 and im certainly no geek . once again i find this cyber world full of utter gentleman . nothing youve said had adressed any of my opinions but then again i rarely expect that from anyone . another thread that has trully wasted my oxygen . carry on
Yes I am, joints worth around 400K and I am charging $420 per week so I'm right up there. Won't put it up this year, bloody agents want a weeks rent up front if I change tenants, so better keep the ones I have. I haven't had any repairs in 18 Months so will look after them.
The rent more than covers the cost of maintaince and rates etc, as I said those costs are only about 15% of the rent collected.
Hey Bill Gorokan is in a great location being a short 7 klm from the ocean (Tasman Sea), right on Lake Tuggerah/Budgewoi and about 20 klm from State Forest. Note the aerial behind the house indicates a fair distance to transmitters or a low lying area.and you can still buy a cheap old small house just 1 hour north of sydney for 210K.
For a starter that's darn cheap!
Link to Cheap House
What area do you invest in Tyson? Do I recall Brisbane or am I wrong, I'm getting old?
So I think 15% is very conservative. Have you owned property for more than 10 years?
$450k house with 2 bathrooms rent $400 per week
approx 20k per year
Replace bathrooms and kitchen every 10-15 years
200000-300000 rent
= $30k replacement for kitchen and bathrooms.
So I think 15% is very conservative. Have you owned property for more than 10 years?
not meaning to offend anyone just bored with a whole crock of crap that gets fed here daily......
You can always just block me if my comments upset you.
The banks recommend 20%, hence why they use 80% of the rental yield in their calculations, but it my experiance 15% has more than covered my costs
I bought my first property in 2001 so just on 10 years since I bought it, But it was built in 1993 and still have the original kitchen and bathroom, budjeting to replace the kitchen and bathroom every 15years is over the top.
You just have to keep things tidy as you go along, you would be amazed at what a coat of paint and replacing a few key fixtures can achieve.
We are looking for a PPOR. We are an average income couple (combined income approximately 100,000, as we are both 22-23) Yet the property's we are looking at are perfectly affordable. Looking to purchase around the 300 - 350 mark, with a mortgage of around 250k.
try getting same house in Sydney, Melb in similar areas.. I earn a great salary yet still live at home, your looking at 400k minimum for a ****ty apartment down here in Sydney
Yeah, you are right about the levys, they're a bit rich. Reason I asked was that I couldn't buy a house in Sydney for 400k hence the unit and those levys. Brisbane sounds good.Yeah, All my properties are in Brisbane, Thats where I grew up. Moved to sydney but I still thought I knew the brisbane market better, so thats where I invested.
My Mum bought her house in 1985 on The Gold Coast. She is now a very old lady and Dad's passed on so nothing has been done on the house. 2 bathrooms and the kitchen are still original. Yeah bit old but it still all works.I agree with Tysonboss here, what sort of crazy nutter replaces bathrooms or kitchens every 10 years ? I dont even own a property (yet being a tradesman know a thing or two about reno) and thats just crazy talk..
That's exactly right. We don't have much choice in Sydney so in our case we have to buy a 1 br unit for big $$$ and just build on that. Why people want to start big on small funds is beyond me.However its just not affordable to have a mcmansion in an inner city suburb with a jet ski and a brand new car and an iphone 4. Which is what everyone my age seems determined to try to leverage themselves into, and then will assuredly cry foul "omgz property is tooo expensive the guvarmant should help uz"!!!
No argument here, however as a Northern beaches guy I can tell you that a studio apartment 25 years ago for 50k will today sell for around 390k in MANLY. Do you know Central Plaza opposite Rockys barbers in Manly? I do, biggest sh!thole in Manly but still renting for 350 to $420 per week. It use to be the Sydney City Council building offices 30 years ago. They moved out and the offices were turned into studios. Buy price now for a 47 sqm studio is 399K. Rental for the same is $420 per week. Man, crappy place but good returns and that's before we talk about capital gains over the years.try getting same house in Sydney, Melb in similar areas.. I earn a great salary yet still live at home, your looking at 400k minimum for a ****ty apartment down here in Sydney
http://www.realestate.com.au/property-unit-nsw-liverpool-106653137
Come on ****ty apartments sell for less than $400K. look at the link above
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