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I’ll be certain to shop around Dean. Two agents I spoke to so far in the Narellan area were asking 6.5%. As I said, I do know others with 5% arrangements that were put in place a couple of years ago so perhaps the agents all met at the pub and decided its time for a price hike. Given there has been some turn over in properties lately is probably the motivation for them.
I’m sure they drink more beer in Brisbane and so that would account for the higher rate.
Thanks Benny.
I am buying properties at the moment so I haven’t got to the stage of actually haggling on the management rate yet.
One property in the deep southwest of Sydney in an area where median rents are about $450pw and there the agent is asking the 6.5% I mentioned.The other one is in Fortitude Valley and is let for $460pw. That’s where I am being quoted the 8.5%.
I know that some agents here in Sydney will take on management work pretty much anywhere across the city. So I assume that is why the % rate I Double Bay is probably the same as it is in Parramatta.
I also know people who set up their management arrangements about 5 years ago (Werrington – western Sydney) who have been paying 5% since the day they signed up.
I guess I’m comparing Bris v Syd.
You can see it as 2% or you can see it as 23.5% depending on your point of view. Basically it is another weeks rent you loose.
In 1999, last time I had an IP (in Syd), they were only asking 5%, and there was no GST to put on top back then. What has happened that made the management of properties that much harder for them?
