A stat from my EoFY statements

I just received my end of year financial statements for 2 IPs and for both of them my expenses were about 26% of income. These expenses do not include loan repayments of course.

Both properties are in metro NSW. One is a 25 year old villa. The other property is a house almost 100 years old apparently which I reno'd a couple of years ago.

I just thought I'd post this for anyone who is looking for some real-world stats on how much it costs to hold an IP. I was a little surprised how close the ratios are since it seems I am always talking to the old house PM re maintenance and I hardly ever speak to the villa PM.

 

Thank you for sharing @monty
I have received my NSW EOFY statement, and at the moment the cost/ income is sitting at 24% excluding interest. Ruralish area

Awaiting for QLD one and the two will have a lot higher percentage, especially with problem tenants and big fixes this year But in general coucil rate is 3x my NSW one, go figure

 

Are you including capital improvements such as repainting, replacing appliances etc????

 

I didn't have any capital expenses in the FY just gone. Those expenses are the PM fees, maintenance, rates, insurance etc. It is a good question though as in the previous FY I spent almost $5k capital expenses on one of them.

 

Nope

Breakdown look like this
2015/2016
* Council -$1,209.45
* Water rates -$1,381.32 (recouped some but not much)
* Repair and maintenance - general -$649.00
* Repair and maintenance - plumbing -$172.00
* Tribunal fees -$47.19
* GST on fees -$98.35
* Management fees -$911.33
* Administration fees -$72.00

 

No insurance?

 

O whoops, separate line from FY statement in my doc

EBM RentCover Insurance Payment $833.10
Annual loan package fee $395.00

 

I just plugged in the numbers (approximations) on mine

A: residential apartment, sydney metro...30.4%
B: commercial, sydney metro...22.7%. This is self managed though. Would be around 30% otherwise

No capital expenses in the last year. How do you guys keep it to ~24%?

 

I'm going to guess that your strata may be the difference. Give the exact figures and they might be able to see where your numbers blow out.

 

That's not bad...
My SE Brisbane property is at 40% WITHOUT the big maintenance items

 

Is annual package fee tax deductible?

 

I think so

If not my accountant will just exclude it. I included it just in case

 

If it relates to loans for IPs , yes.

 

do you pro rata it, if a PPOR is with that institution?

 

IP1 just over 21% by my back of envelope calculations. Self managed.

 

Yes, that is why these kind of structures are an accountant's hell

 

Ours range from 15-25%. That's why I always use 40 weeks of rent into my calculations. Even that seems a bit generous.
Some people complain about DHA's 16.5% fee. When I look at the total cost, others are not any better than DHA ones.

 

It could be - to the extent it relates to investment property loans.

 

What if the first IP loan is the one using the package fee? The subsequent loans that still use the same bank get the benefits (of not paying any fee) because the fee only applied once per customer. Is the fee deductible to IP1, which is the original loan package, or need to be spread?

 

40 weeks? Your allowing for 12 weeks vacancy per year? Wow! I only factor in 4 weeks vacancy per year