Tell me then, lets just talk about an average unit in Brissie say 600k.
So at the moment you can get about 4% on that money no worries at all which is about 24k a year.
Rent for something average is about $550 a week around $28,600
Rates on the unit about $1800 a year and more more rentals, BC around $4800 a year, urban utilities around $600 and maybe plus water, insurance maybe $600. Agent fees around 2k a year and all that is if everything goes well with no expenditure.
Just basically if someone pays cash for the unit they may net around $18,800 with no other cost outlay compared to 24k with money from the bank.
If you had 600k in the bank what would you want on your return or investment into anything.
And that's if there is no debt on the property.
For a cash positive property would want a return of 6% upwards to pay for the crap whining tenants that wreck your property because they have no respect of someone else's property and that is simply why rents are high.
