Have you ever wondered the costs of actually owning a property? Here the major costs that I incurr on my properties.
- Finance - This include any interests and fees that is incurred with a financial institution to finance the purchase.
- Council Rates
- Body Corporate (Strata Properties)
- Management Fees - I currently have property managers looking after and handling any issues relating to the management of the property. Generally they can cost between 7-8% of the total rental.
- Repairs - Generally there will be small repairs that is required to be upkeep and maintain the property each year.
- Inspection Fees
All the above annual expenses should always be part of your budget and plans when you purchase a property. You may be able to afford this today but can you afford it next year or next month. So careful planning is necessary.
However as you pay off debt, and combination of capital growth and rental return, property is well worth the investment.