Taxi Plate
- Thread starter scha9799
- Start date
Maybe so, Aus, but taxis will always be around and I can't see the govt deregulate it.
BTW, I have been using taxis lately and the service has been bad. Drivers have been trying to cheat by being on the wrong tariff and pretending nothing is wrong. Also some drivers don't want to use the meter and using bully tactics. This is like third world countries.
BTW, I have been using taxis lately and the service has been bad. Drivers have been trying to cheat by being on the wrong tariff and pretending nothing is wrong. Also some drivers don't want to use the meter and using bully tactics. This is like third world countries.
yeh but they can flood the market to raise revenue. or talk of tampering in the market, the mere fear of which stuffs values. Can work the other way too. It's just such an artificial market that really it's a speculative investment.
taxis are shocking now. caught about 30 in the last week and I have been thinking - you have the old timers that are great, then the new kids on the block with bunkies that just want to rip you.
be very careful with taxi plates,
sure the returns are pretty good, but most of the ones who made the big $$$ were the guys who bought them in the early stages,
the last couple of years say 5-10 years has seen their prices in crease and yields diminsh, however being a highly regulated one for such a long time, people are complaining/protesting more and more as its usually the workers that do all the hard work while the owners get richer and richer,
years ago there were plans to dilute the value of the plates by introducing more into the market, this was protested and didnt occur in the end, as peoples say $400k investment would crash overnight,
also look at cabcharge, the government has stepped in and forcibly cut the comissions from a ridiculous 10% down to a still pretty silly 5%,
Anything can happen over the next 10 years,
These are riskier then one industry mining towns
my 2c
sure the returns are pretty good, but most of the ones who made the big $$$ were the guys who bought them in the early stages,
the last couple of years say 5-10 years has seen their prices in crease and yields diminsh, however being a highly regulated one for such a long time, people are complaining/protesting more and more as its usually the workers that do all the hard work while the owners get richer and richer,
years ago there were plans to dilute the value of the plates by introducing more into the market, this was protested and didnt occur in the end, as peoples say $400k investment would crash overnight,
also look at cabcharge, the government has stepped in and forcibly cut the comissions from a ridiculous 10% down to a still pretty silly 5%,
Anything can happen over the next 10 years,
These are riskier then one industry mining towns
my 2c
Be careful. My understanding is that in Melbourne some sort of deregulation or issuing new licences is under way and licence values have plummeted. Heard on the radio last week that banks are now starting to ask borrowers to provide additional securities against the existing loans if a taxi licence is only security. Not sure if and or how they can do if there is no other changes requested by a borrower e.g. Refinancing of existing loans. 
Yep,
From what I read, the value of plates in Melbourne recently went from $500k to $350k pretty quickly and now many are saying that banks consider them worthless for security.
The value of a taxi plate is only in it's scarcity. Taxi plates are a regulated scarcity. If they deregulate like they did in NZ then the value of a plate is pretty much zero.
From what I read, the value of plates in Melbourne recently went from $500k to $350k pretty quickly and now many are saying that banks consider them worthless for security.
The value of a taxi plate is only in it's scarcity. Taxi plates are a regulated scarcity. If they deregulate like they did in NZ then the value of a plate is pretty much zero.
Be careful. My understanding is that in Melbourne some sort of deregulation or issuing new licences is under way and licence values have plummeted. Heard on the radio last week that banks are now starting to ask borrowers to provide additional securities against the existing loans if a taxi licence is only security. Not sure if and or how they can do if there is no other changes requested by a borrower e.g. Refinancing of existing loans.
ANZ used to extend victorian taxi plate at 60%. Now it is 0
I always assumed that taxi plates are valued on
1. how much income a driver/owner operator can generate doing standard hours
2. How many plates are on the market compared to the population/area coverage ie scarcity to a certain extent
I didnt think it was a case of just pumping out new taxis into the market, supply vs demand, and yes on a friday night the demand is 10x higher, but incorporating quiet times, I would have thought it was pretty stable in todays market
I remember the Arab Bank used to do good deals on taxis ie plate as security, but I hear the major banks want property for security. See http://www.arabbank.com.au/business-banking/loans-for-business/taxi-loans
Prices of Sydney unrestricted plates are around 400K down about 50K. Probally because the state govt is set to release new plates next month.
Also, I heard that the taxi companies have a strong political influence and they would never allow taxi plates to become worthless. I also heard that some banks own hundreds of taxi plates outright. Heard these stories from taxi owners, so it must be true
Prices of Sydney unrestricted plates are around 400K down about 50K. Probally because the state govt is set to release new plates next month.
Also, I heard that the taxi companies have a strong political influence and they would never allow taxi plates to become worthless. I also heard that some banks own hundreds of taxi plates outright. Heard these stories from taxi owners, so it must be true
My opinion.
All of us r.e investors are subject to government change
All us share investors are subject to regulatory change eg, mining tax
All us superannuation investors are subject ton change
All us who use disc trusts and bucket companies got hit a few years ago.
My point, get over it.... Melb has a serous shortage of cabs, by releasing more cheap plates hopefully a few owner drivers get in the mkt and make it a better experience for us customers.
All of us r.e investors are subject to government change
All us share investors are subject to regulatory change eg, mining tax
All us superannuation investors are subject ton change
All us who use disc trusts and bucket companies got hit a few years ago.
My point, get over it.... Melb has a serous shortage of cabs, by releasing more cheap plates hopefully a few owner drivers get in the mkt and make it a better experience for us customers.
read this and thought of this thread....
http://www.news.com.au/business/you...cences-nil-value/story-fn9evb64-1226661451752
http://www.news.com.au/business/you...cences-nil-value/story-fn9evb64-1226661451752
It's disconcerting. Ill-conceived government decisions can have heavy impacts on just about any form of business. It's one of the drawbacks of commercial property, too. Though I suppose the same could be said for residential. One day some bureaucrat might decide to pull the pin on negative gearing - or approve massive inappropriate developments next to your IPs. No investment is immune to bureaucratic bungling.
I would also be concerned with alternate (smartphone based) taxi companies such as www.uber.com diluting the market.
It is only a matter of time before these become more common.
I catch well over 50 cabs a year, and the drivers don't seem to be making a fortune...
It is only a matter of time before these become more common.
I catch well over 50 cabs a year, and the drivers don't seem to be making a fortune...
Well the drivers of taxis are like the checkout chick at Coles. They don't get paid that much.
I'll believe it when I see it....or more to the point when I hop in one drunk on a Saturday night, slurring my words and then fall asleep on the back seat. Lets see what the driverless car will do then. Its impracticable as a taxi.