Monday, May 15, 2017

Rent affordability in Sydney

Was listening to a friend on my FB list posting about property investors are greedy and how the government needs to remove negative gearing, get rid of capitals gains discounts, and that the rent in Sydney is too damn high and his landlord is ripping him off at $490pw.

I posted a few screen shots of "reality calculations" in an excel spreadsheet

100% property cost + purchase costs/stamp duty/legal expenses (for his 2br Sydney apartment based on other local sales around $700k)
current mortgage rates (used 4.5%)
Annual expenses including Rates/Strata/Water/Insurance + avg repairs pa of $1k

Which means his current apartment actually costs $700pw and that his landlord collecting only $490pw is actually losing $210pw

(ignoring probably wouldn't have 100% mortgage and didn't purchase property "yesterday" at current market rate etc, but very accurate calculations apart from that).

Australian renters have never had it better and are actually benefitting from Australian tax policies in a big way.

When I pointed out that his apartment actually cost $700pw his response this shitbox no way I'd live somewhere not stupid enough to pay that much.


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