Hi all,
Does anyone have/use a simple formula to get a estimate of purchase cost and the ongoing cost for an IP.
Henning
Hey there Skalle
Purchase costs would be 5-8% of price, depending on state, lender etc and if u get mortgage insurance…
ongoing costs vary, an older place has more maintenence then a newer place… but to add u hav :
rates,
water,
insurance(s) of some sort,
agent fees,
strata fees,These can be assumed to remain constant, with small increases yearly… but then u hav to worry about what can (and will) go wrong in the place u buy…
Houses get internal as well as external problems, last year i had to replace 24 metres of boundary fencing, after an “act of God”, then the hot water system blew, then shower screen fell of rail and broke.. in the space of 3 weeks… cost me $2700… this yr (so far) its been $20 on leaking taps…
there is no set formula in other words, u just hav to hope for the best, and be prepared to hav “just in case” money ready to fix things that happen…
hope it helps!
Jason
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