Though these can change based on a range of factors. Watch this video on the 6 hidden costs of buying a property to get a full rundown on the set-up costs.
“I thought Opes was $0. Why are there $6.5k for financial advice fees in your table?”
Some property investment companies don’t charge you money to work with them.
That’s us here at Opes and some others in the industry too.
You might think, “How do you manage that?” We get paid by the developer.
If you buy a house that a property investment company recommends, they get paid a fee.
But, on top of this, some companies also charge you a fee. That's on top of the commission they get from the developer.
This is usually between $500 – $6,500 per property.
Of course, you don’t have to use a property investment company to invest in property. But if you do, the cost can range from $0 – $6.5k.
#3 Cashflow
If you buy a property today, interest rates are high. That's why a property's rent likely won't cover all the costs.
So you, as the property investor, have to cover the shortfall. We call this a 'top-up'.
If you borrow all the money to invest, your top-up will likely be between $350 and $500.
But your top-up will go down as interest rates fall (and the rent increases).