Dear all, Just wondering if people can post their experiences of residential outgoings growth-what I mean by this is over the life you have owned the property has the outgoings to rent ratio changed a lot? For example was it 20% of the total rent you received in 2005 but now is 30%. The longer the better and looking for percentage changes over time please. If the change is due to owners corp. reno fund fees then that is welcome, but more looking for council rates, water rates etc.. Any comments on maintenance fees also welcome-realise tradies are more expensive now than they were in 1995. Thank you very much.
It's a hard one to answer as a lot is also dependent on the dwelling type and age. I've had an old double brick unit that's experienced hardly any increase in maintenance costs, etc over the last 10 years. On the flipside - I've got an older weatherboard house that's becoming more expensive each year with maintenance/repairs. Certain tenants can cause costs to spike as well - some are easy going/not overly fussy whilst others will call the PM as soon as a light bulb flickers. Cheers Jamie
Thanks Jamie, indeed it is hard to answer, but I am trying to get a sense of net yields and the changes in them. Surprised it isn't discussed more.
Below chart showing average expenses claimed vs rent from 1992-2010 The surprising part for me is expenses claimed generally at around 50% of rent. I guess this might have included depreciation also though. Also, as of around 2000, most rental properties are negatively geared.
difficult to put a figure. will depend on the type of properties ( unit, apartment, house), age, condition, location, construction, size ..... with the brand new ones, usually they have builder warranty, so less maintenance cost, but strata would be through the roof. older ones tends to have more maintenance issues, which could cost a fortunate.
