澳洲Australia property Houses holding costs vs Flat holding cost
在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
I'm confident working out the costs of holding a house as an investment property, and always considered flats/apartments too have higher expense. Is this generally correct?
What kind of holding/investment costs are associated with flats? Rates? Strata fees (what exactly are these)? Sinking funds (what are these)? And so on?
Would a $200000 house fetching $350 per week generally be better off than a $200000 flat fetching $350 per week from a pure cashflow+/- point of view?
Hello Frugal One
I recently worked up similar calculations ...except I was comparing a single house costing $275k to 2 units costing the same and renting at the same dollar value ($450 pw for the house and $225 pw for each of the units).
The cost of holding 2 units was dearer and would cost more (without tax and depreciation). I did incorporate around $4000 as maintenance costs for the house.
You can find out from the rea what the strata costs are and I normally check the amount available in the sinking and building funds.
someones please correct me if im wrong
ive only just started learning this stuff and hope its right
well the house wouldnt have strata fees so if there was no massive issues with either the house would probably come out on top
but if there was an issue with a blocked drain strata would pay for that (if the blockage isnt inside the actual house?) but you would have to fork out if it was a house
strata fees go towards building insurance, every day costs, maintenance, the sinking fund, .... ?
sinking fund is the amount of money the strata has for any issues that may arise ?
Calculating the cost of fees and sinking fund for a unit is exclusive to the particular complex. It would depend on things like whether there is a pool, lift, gardener etc. It would also depend on whether there has been a large expense recently to deplete the fund and it needs building up again.
In my (limited) experience, the costs of owning a house compared to a similar unit balance themselves out.