just last week i was looking at taxi plates in melb
rang several brokers that the taxi associate gave me and most were saying u may find some at around 460k with averages at 406k but very hard to find at that price
interestingly most brokers /investors had around 40 taxis that they own and run themselvesthey said if u leased them out u would get $2100 per month
but do u guys think of this?
work out the return. If you get 2100 per month, that equals $25,200 per year. That is a return of 5.47%.
Is this a good return? If you opened a ING savings account you would get more. But with the plates you may be able to borrow t o purchase, meaning less cash needed, making a higher yield, and there may also be capital gains too.
So it may depend on your views of the taxi industry. Is the demand for plates going to stay high? What happens if the Govt issues more plates etc.
Then compare this to property, where you might get a slightly lower rental yield, but property would possibly have a much brighter long term prospects.
Terryw
Discover Home Loans
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Hi New Investor,
I know a bit about taxi plates because my brother co-authored a large report on the industry for the State Government a few years ago. Hios take on it is that there are a lot of changes that probably should be made in the industry, but it appears that not much will happen in the forseeable future.
Most people in the industry seem to think that the strong growth in price and revenue from plates is likely to continue. I think they usually return a better % rate that what you have stated by the way.
They seem a pretty good passive investment to me as they hacve a history of steady growth and are very low maintenance. Personally, I wouldn’t buy one, but many people hacve and have made good money from them.
Regards
AlistairMy father and I own a taxi license here in brisbane. The capital growth has been very steady and the leases are generally for 2 years with a constant stream of drivers ready to take over if needed. We purchased in a year ago for 350,000 now they are averaging around about 390,000 from what I understand.
steady growth + steady income = solid investment
plus there’s no bull<edited> property manager fees or constant “fix/repair” fees. just a $150 per year registration fee.
Be warned though, there are alot of taxi syndicates out there who are willing to pay a hefty premium on taxi licenses.
I have looked into it – the big spectre was always deregulation of the industry.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Forget about the taxi game ive looked into it while i was driving cabs and its too late to be getting invovled in the returns are low and i suggest its only for someone who wishes to buy themselves a job as a taxi driver and even then i suggest not buying plates just the vechicle and keeping the bests shifts for themselves. Anyway this is a road too take for people with little ambition and i sense that you desire something more in life and i wish you great luck in achieving it[grad]
Also you are limited to around a 70% lend.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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How did the emergence of Lime Taxis affect things in Sydney?
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