Sydney Taxi's

Nigel m,

Talking to a TCS operator today(29/3). He said that TCS has a queue of one hundred drivers waiting to lease plates.I don't believe it myself, but who knows!
I've also been told(by a different person) that $400 a week in leasing payments are too high. You can lease a plate for $320 a week.
Again don't know if it's the truth or not. Try asking REG. he will definately know. He knows all, when it comes to taxis.

bbruham.
 
Nigel,
The other day in the Herald some fellow was leasing his plate, and he wanted $470 a week. If the plate costs you $300K that's a return of 8.14%.
If he can lease that plate for $470, then I'm in the market for number two plate.

bbruham.
 
Was that Saturdays SMH ? What page?
Also, are the plates advertised for sale in the SMH? I've been looking for a couple of weeks. What pages/serction etc???
Pedro
 
pedro,

Look under Businesses for sale in the Saturdays Herald.
Which is in the business/investors section of the paper.
I only look on Saturdays but they print them in the Wednesdays
edition also.

bbruham.
 
Bbruham

If the plate costs you $300K that's a return of 8.14%.
If he can lease that plate for $470, then I'm in the market for number two plate.

Will be interesting to see if he manages to get his $470, If he does and you can buy for $260K-$280K, then it makes one think seriously.
As I said before one Cab company has over 20 people waiting for leases, so in a Owners market then one could possibly recieve $470!!!

Regards
Nigel m
 
Thanks bbruham. And here I am looking in the "Cars" and "Fancy No plates" sections. Duh

I agree with Nigel. If those numbers check out and the demand is there, you would think the leases would increase from the previously assumed $400.

. . . mmmmmm . . . (Pedro contemplates the possibilities)
 
Back a again, today (1/4) I made more enquiries. It seems that there is a waiting list for plates. Leasing a plate today attracks a minimum of $400 a week. Some plate owners are asking $430 to $435 a week. This is becoming the norm. When the leases expire the plate owners are increasing their fees.
The reason taxi plates have jumped is that investors have entered the market.
If you have driven a taxi lately you'll know that the investors have inflated the price for no good reason. earnings are down,
way down.
If the earnings go lower, then I'll have too mow lawns($50 a lawn).

bbruham.
 
Investment in a taxi plate has some negative features.

Let's suggest a person N bought a taxi plate for $360K.
He does not want to be a taxi operator and he would like to receive a positive gearing and/or capital gain from leasing a taxi plate.

After a purchase of a plate the person N should pay:
GST: $36K, stamp duty: $9360; Owner's accreditation: $100;
All total government charges will be around $45.5K

:D It will make this deal irreversible without losses for a prolong period.

It's not easy to make these $45.5K tax deductible (at least in the remote future).

Let's suggest a person N will lease a plate for $600/week.
Return is 7.92%. It looks not bad but:
1. a loan rate for a taxi plate is expected to be higher with a bigger deposit;
2. keep in mind a tax man;
3. eventually Australia will be better economically and an interest rate 7.0% will be reasonable. In this case an after tax profit will be around $200/month.
4. 8-9% interest rate is not unusual for Australia and in this case a gearing is negative.
5. A taxi plate value is a subject of market volatility due to multiple factors.
6. Forget about a capital gain for a while due to high government charges. And even if you recieve some capital gain you will be oblige to pay a capital gain tax.

It would be interesting to know the opinions about the next situation:
A person N bought a taxi plate for $360K. He paid $45.5K government charges.
Next day a person N went to swim and drowned.
He had a son to inherit a taxi plate.
Does his son has to pay $45.5K (GST,stamp duty and owner's accreditation) as a result of change of ownership?
 
After just recently obtaining my taxi license to drive and helping in-law buy his cab I can tell you that this industry is not for everyone.

If you have watched "the Sopranos" you will be able to relate. It's a very 'dodgy' industry with lots of sharks when trying to buy a plate.

I started driving Sat nights and the money is EXCELLENT although it can be dangerous and you learn quickly to develop a sixth sense when pulling over to pick up people

Personally the numbers and risk of buying or even running your own taxi do not stack up vs real estate investing.

Just my 2cents worth ...
 
It would be interesting to know the opinions about the next situation:
A person N bought a taxi plate for $360K. He paid $45.5K government charges.
Next day a person N went to swim and drowned.
He had a son to inherit a taxi plate.
Does his son has to pay $45.5K (GST,stamp duty and owner's accreditation) as a result of change of ownership?

I think this would be a question for a lawyer who deals with wills and estates... if the son is the beneficiary then they would not have to pay anything at all. Can someone else confirm?
 
Hi guys,

I am planing to buy a taxi plate in sydney with my best friend and we are going to get a loan for it.We are both going to drive the taxi 6days a week,day and night and we are hoping to pay it off with in 5 years (the loan)..So,what do you guys recon?do you thing is it good way of doing it...

we are hoping to make approximately 2000 dollars a week,which is 8000dollars a month and put all that amount into the loan to pay it off quickly.our partners are working full time as well and we will pay our morgate with their wages...I don't know how much will it cost to buy a taxi plate in sydney at these days,but we are thing around 400K..

does anyone knows what are the procedures to buy the plate...thanks guys
 
I think to start with you should check what the plates are actually worth in Sydney. I'd be very surprised if they were only worth $400 000.
Currently in Brisbane they are worth approx $500 000 and there are waiting lists to get hold of one.
 
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