Hello Everyone,
I’m thinking about converting my PPOR to IP and want to calculate the expenses. Does anyone know how I can estimate the maintenance costs per year for a small 2 bedroom house that is 20 years old? Please keep in mind that I live in Darwin and things tend to be pricey up North.
Expenses I’ve included are: landlord insurance, real estate management fees and rates – anything else I should budget for?
Hiya
It’s a really tough one to answer – personally, I assign a $1k budget for maintenance to each IP but this can blow out quickly if there’s a major expense (hot water system for instance) and some years you might not spend a dollar.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Colagirl,
The major four are – Rates, Insurance, RE fees, and Maintenance – and, if a unit, add in Body Corp!!Sounds like you have thought through most of them – re Maintenance, do you need to consider lawns, gardening, or is the tenant taking care of those?
Benny
Hi Benny,
I thought I would keep the costs down and let the tennant take care of the garden – having said that, the garden is quite big and property managers tell me that tennants just don’t look after gardens that well. So I thought I would give it six months with the tennants then review the situation.
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