Hi
Quickie – as the title suggests, just looking at 1 or 2/1/1’s and the fees are often killing it – some are more than my PPoR- a strata’d 3/2/2.
Does anyone have a feel for what size unit yields greatest rental fees vs. outgoing costs?
Cheers
Sam
p.s. I suppose someone is going to suggest i should be buying green title houses?!
Sam, outgoings are very subjective on units and vary widely depending upon several factors – age of building, owner/tenant mix, no. of units, services (lifts, concierge/onsite caretaker, pool, grounds maintenance/landscaping etc), and the list goes on. By rights, a 1/1 may have proportionally higher costs associated with it as the floor area is usually not that much smaller than a 2/1 (the difference being only a bedroom – they still have bath/kit/lndy/lnge/din) however a review of the unit entitlements on the strata plan will reveal how closely the ratios reflect the charges.
Cheers Scott
Just spent today trawling round home opens around the $250-$350K mark for units… was not impressed. Highest Net Yield i’ve found after costs so far is 4.3% and the strata fees i’m talking about are largely responsible… several of the units had strata fees alone of $2K+/yr.
Wow.
I was just wondering if anyone had done any sums on the comparative ratio of rent vs. costs for different types of properties and whether this favoured, for example, 2bdr villas rather than units?
Current worst example is over 30% of rental yield disappears on costs.
Cheers, Sam
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