Where does rent go?

just wondering where my rent goes... I pay no water and only electricity. So i assume my rent covers things like rates, body coropoarte, although I know there is not one, and other things.
How much does the landlord get out of it at the end of the day?
How much do estate agents charge?
what about vacancy insurance etc etc...
Any input please

FF, I am a landlord and by my calculations I end up with about 50% of the rent paid to me. I have house insurance, estate agents commission (5%), repairs, council rates and a small percentage of administrative expenses (cleaning, letting fees etc). Others will also have Land Tax but I am below the threshold.

Flying Fish said:

just wondering where my rent goes... I pay no water and only electricity. So i assume my rent covers things like rates, body coropoarte, although I know there is not one, and other things.
How much does the landlord get out of it at the end of the day?
How much do estate agents charge?
what about vacancy insurance etc etc...
Any input please

Click to expand...

Impossible to say unless you ask your landlord what his investment loan payments are...then you'll have the answer.

breakeven said:

FF, I am a landlord and by my calculations I end up with about 50% of the rent paid to me. I have house insurance, estate agents commission (5%), repairs, council rates and a small percentage of administrative expenses (cleaning, letting fees etc). Others will also have Land Tax but I am below the threshold.

Click to expand...

So presumambly that 50% you receive goes to loans?

there are many outlays for a person investing in rentals.
Property management - 7% - 12.5%
Rates
Water
Maintainance/repairs
Loan/bank fees
Insurance
Headaches from tenants (I'm lucky. I have great tenants)

Remember that equity is locked up in property and needs a return or it's better to have it under the pillow.
A smarter man than me mentioned that a good investor will have 4 positive properties for every negitive property as a baseline.
A positive property, as I was told is a return of $160 p/w for every $100000 in value.
Of course you can have a negitive property pre tax that is positive after deductions such as depresciation.
One may also work on a negitive property and hold waiting for a capital gain.
Everyone's situation is different..

cheers,


Of course

Flying Fish said:

So presumambly that 50% you receive goes to loans?

Click to expand...

FF, In my case not now as I have held the property long enough to have paid off the loan but in many cases yes you woulld be right.