Budgeting & Expenses
Owning an investment property is no different than owning a business, you must have a financial plan.
Many investors live month to month, using the rent to pay the mortgage and expenses. In some months there’s money left over and in some months there’s not enough. This type of arrangement adds an enormous amount of stress.
Part of our management services is to prepare a complete plan and budget for every landlord.
By knowing what your expenses are on any given month, you can prepare yourself for difficult times and even the unexpected.
|o Council rates
o Water rates
o Strata levies
o Land tax
o Management fees
o Leasing fees
|o Lease preparation fees
o Marketing expenses
o Smoke alarm inspection
To work out your own budget:
- Make a list of your expected expenses and the amounts.
- Determine when they are due, are they weekly, monthly, quarterly, half yearly or annual?
- Print the table found here and add the expenses
- Total the expenses for each month.
- Add your expected income, or rent.
- Subtract the total expenses from the rent each month to determine your expected monthly profit.
TIP: Allow some funds for the unexpected and remember to compare this budget with actual costs to make sure you are still on track to your goals.
Download a free Budget Template in our Free Downloads page
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