IFocus
You are arguing with a Galah
- Joined
- 8 September 2006
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In Perth the Agents cost to manage a rental, tends to be around 12% if compulsory inspections are included.
Pay 7 to 8% in Mandurah
Well I was being charged 8% + p&p + gst + inspections + letting fee, in Mandurah. That's why I manage it myself now.
We had a number of properties in the area so got management for 7-8% after doing the rounds for a while negotiating.
Expected lower but just couldn't move the local agencies, now only hold a small block of units still paying 7-8% having said that my wife managers the manger pretty closely (and me) so we likely do a bit more than most.
Really? So cheap? I pay around $3000
Again, unbelievably cheap. Is this factual?
I have just paid $1079
I have a 40K personal share portfolio which is paying me a tad under 3k a year with fully franked dividends. capital gain of ~8% too (annualised to around 12%)
still below the benchmark
Which/who's benchmark?
asx200 total return for the past year
ideally you would be generating alpha
I don't get too involved in benchmarks or let them dictate me.
If l'm getting ~10% in todays environment, l'm happy with that.
I don't get too involved in benchmarks or let them dictate me.
would you be happy with 10% if the investment vehicle/market you're in is averaging +50%?
still below the benchmark
It's rarely talked about, but why did Australians save so little during the Howard Govt??? I blame the halving of capital gains tax and the headlong rush into negatively geared property.
It's rarely talked about, but why did Australians save so little during the Howard Govt??? I blame the halving of capital gains tax and the headlong rush into negatively geared property.
+1. Thanks for the graphs. The scary thing is how many people, after showing them data like you did will still jump head first and with a smile into a 500K mortgage, either for their on home or for an IP.
I remember a guy from my old job. late 20s or early 30s. Newly married - wife's family seemed to be pretty well off. I think the Indian heritage wasn't helping as there was a lot of pressure on him to buy a property since their peer group had all got at least 1 IP.
The purchase price was in the high 500K range, but the rent was ridiculously low. I had a bit of a chat with him 1 night shift and was gobsmacked that he had done nothing similar before signing on the dotted line. I would say he'd be easily 6 figures under water now, and what really got me was we all knew our jobs were going over the next 6-12 months, so how you could set yaself up with that much debt when job security is not there, I have no idea.
A lot of the literature doesn't inflation adjust their figures, nor do they truthfully factor in holding costs for an IP, and they never ever talk about bad tenants.
We live in a land where mum and dad property investors purchase a property to be able to claim back more tax than their neighbours and workmates from the government (this is a definition of success in Australia), and hope to achieve capital growth that exceeds inflation, maintenance, depreciation and interest repayments. Rental Yields? Why are they relevant to property prices???
I've yet to be convinced that "capital" gains deserve to be treated differently to income earned stacking shelves at the local coles or driving a truck between states.
I remember a guy from my old job. late 20s or early 30s. Newly married - wife's family seemed to be pretty well off. I think the Indian heritage wasn't helping as there was a lot of pressure on him to buy a property since their peer group had all got at least 1 IP.
The purchase price was in the high 500K range, but the rent was ridiculously low. I had a bit of a chat with him 1 night shift and was gobsmacked that he had done nothing similar before signing on the dotted line. I would say he'd be easily 6 figures under water now, and what really got me was we all knew our jobs were going over the next 6-12 months, so how you could set yaself up with that much debt when job security is not there, I have no idea.
A lot of the literature doesn't inflation adjust their figures, nor do they truthfully factor in holding costs for an IP, and they never ever talk about bad tenants.
We live in a land where mum and dad property investors purchase a property to be able to claim back more tax than their neighbours and workmates from the government (this is a definition of success in Australia), and hope to achieve capital growth that exceeds inflation, maintenance, depreciation and interest repayments. Rental Yields? Why are they relevant to property prices???
I've yet to be convinced that "capital" gains deserve to be treated differently to income earned stacking shelves at the local coles or driving a truck between states.
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