Hi,
I am looking at a property and the Information Memorandum says:
Gross Rent: $35000 (I've used different figures) + GST
Less:
Council Rates: $1300
Water Rates: $580
Body Corporate: $2800
Insurance: $1100
Total: $5870
Net Rent: $29220 + GST
Am I correct in saying that the real net rent figure you use needs to include all other outgoings that you may incurr as a landlord, eg. land tax, property management fees and maintenance/repairs?
And that you should use this net rent figure to calculate the actual yield the property is selling for, rather than the figure quoted by the agent?
And when calculating this yield figure do you exclude the GST amount or include it?
Thanks!
I am looking at a property and the Information Memorandum says:
Gross Rent: $35000 (I've used different figures) + GST
Less:
Council Rates: $1300
Water Rates: $580
Body Corporate: $2800
Insurance: $1100
Total: $5870
Net Rent: $29220 + GST
Am I correct in saying that the real net rent figure you use needs to include all other outgoings that you may incurr as a landlord, eg. land tax, property management fees and maintenance/repairs?
And that you should use this net rent figure to calculate the actual yield the property is selling for, rather than the figure quoted by the agent?
And when calculating this yield figure do you exclude the GST amount or include it?
Thanks!
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