I was reading this post https://www.propertychat.com.au/community/threads/how-much-maintenance-per-annum-is-normal.12007 and thought......hmmm what are our annual repairs - well turns out about the rule of thumb average of 1% pa as people say
My response is below
Thanks for posting this.....made me collate all of the repairs since 2008 into a new spreadsheet tab and have a brand spanking new report spreadsheet across all of the properties :)
Results are as follows:
$1621 annual average repairs for all properties ($351,$687,$582 pa) which equates to 0.43% of property purchase price (obviously if you based percentage on current value would actually be lower due to capital value increases).
We haven't done any major renovations (have at least 2 bathrooms and 1 kitchen scheduled for the next 4-10 years) and this doesn't take into account strata fees as these are all strata units.
But basically I think you could say 1% pa is about right on the money..........which is depressing when you realize rent after expenses is 2.85% average so actually only making 1.85% return (excluding capital returns and as the tenants actually pay all of the mortgage with rent I guess isn't too bad eg 7% LTA +1.85%) but S&P for same 2008 to 2015 period was 6.85%+divs
So basically :(