1. Is there a list of expenses one can obtain which shows every likely expense associated with purchasing a property investment. Perhaps it’s naivity on my part but I was astonished at all the extras one has to pay. One example for instance, getting the depreciation schedule arranged which will cost $420.
2. Can one get several agents involved in trying to secure a tenant for a brand new unit? I have signed a General “management” agreement but it does not have an expirty time frame on it, e.g. 60 days
ThanksI dont have a list, but you would be shocked that sometimes the budget blows out because of something that was unseen, and it does happen.
Depends on many factors, like your solicitor, or pest person, builing inspector, depends on the amount of time, effort and expense, eg you might forego property and pest inspections (might be a bad choice), you might go to a conveyancer rather than a solicitor, you might invlove an accountant…
You might want to write things in a contract to save you some money, get them to fix things routine…
Loan charges and fees vary, shop around.
So I guess there are too many factors to be specific… cheers
Elves
Sometimes when multiple agents involved they can get slack thinking that they still might not get the job in the end so why bother – it is a tough call but normally it is advisable to let an agent have a fair go at getting a tenant unless someone has one waiting for you
cheers,
bluecatDo today what you want to do tomorrow
A ‘depreciation schedule’ might not make sense on a 35K (older) property such as I own, but it might make sense on a brand new apartment costing 350K plus, to spend $420 and get one. Basically, get one, if it will save you more than it costs.
when buying an IP, the list of things I add up to get my actual in hand return are – and they are all expenses, apart from ‘rent’ –
purchase price (plus renovation if doing that)
closing costs (lawyer, stamp duty if in Aus)
expected vacancy (write that in as a ‘cost’ or take it off your rent)
property management feesmaintenance budget -work out what you would expect it to be, based on age, price, style of house etc
holding costs, i.e. rates, insurance, borrowing costs.cheers-
MiniI don’t think I forgot anything but if I did I’ll be back.
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