Hi all
I am in WA and the standard is 8.5% plus gst, I negotiated 8% inc gst, so around 7 3% ex gst. I will be able to get that a little lower if I add to my 2 properties.
John
It’s quite expensive in the ACT – anywhere from 8% to 10% plus GST.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Guys
Im not involved in WA but dont forget to negotiate the additional 1-2 weeks rent upfront as well, if your property is rented for 500+PW it can take a while for 0.5-1% to pay back.
If you strip that at the start its $ in the bank sooner!
Watch out for admin fees too.. arrange to have statements emailed and cut out the fee altogether!
I agree, the more you have the better you can negotiate (works with quality of property too)
Hi,
My IP is in the Barossa Valley and (I am a little embarassed to say….) I am paying 14.5% inc GST. I interviewed 3 agencies in the region and they all charged 9.9% plus first two weeks rent plus this and plus that. The agent we went with also charged 9.9% as a a standard but we decided to sign up for their Blue Ribbon package which is all inclusive. On paper it looked like better value and as I am very new to this game I am still hoping it is!!
In case you are interested, here is the comparison and breakdown of costs between the agents standard, and their blue ribbon package, taken from IP guide:
Our Scenario – property rent of $250 per week for comparison – calculations for a 12 month period.
Weekly rent $250 Management fee $24.75
Yearly rent $13,000 Yearly Management fee $1,287.00
Letting fee (2.2 weeks rent) $ 550.00
Routine Inspections – 3 per year – with our compliments
Administration fee – 12 months $ 66.00
Lease renewal fee (remember this could be a letting fee if the tenant vacates) $ 275.00
Total minimum investment for 12 months $2,178.00
If we were to compare this to our Blue Ribbon package
Weekly rent $250.00 Management fee $36.25
Yearly rent $13,000 Yearly Management fee $1,885.00
Total minimum investment for 12 months $1,885.00
scullywaggs wrote:Hi,My IP is in the Barossa Valley and (I am a little embarassed to say….) I am paying 14.5% inc GST. I interviewed 3 agencies in the region and they all charged 9.9% plus first two weeks rent plus this and plus that. The agent we went with also charged 9.9% as a a standard but we decided to sign up for their Blue Ribbon package which is all inclusive. On paper it looked like better value and as I am very new to this game I am still hoping it is!!
After reading your other post regarding your tenants – it doesn’t sound like you’re receiving “blue ribbon” treatment! I’d get rid of them and get another PM on board. Speak with the potential new PM about your current dilemma and see what they’d do to remedy this issue.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
7% is okay I guess. Even they are making efforts to keep the property in best situation.
Had a forum client quote me 12.5% today so rates might be creeping up again.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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