One of the more striking aspects about this article from The Age  is the monthly rental price tag for this Toorak mansion. $34,500 per month. $414,000 per year.

Is this exorbitant? Many people would say yes. But perhaps not if you’re wanting to rent a property worth between $8.5 and $10 million (the value suggested in the video embedded into the article).

Imagine you owned this property freehold and it was your only investment. It is an investment worth $8.5 million or $10 million. Income of $414,000 on on asset of this is a yield of somewhere below 4.9% or 4.1%, before factoring in other costs associated with owning the property.

From this perspective, you could argue that rent of $34,500 per month is too low!

Sonnie Bailey

In his spare time, Sonnie likes telling people that he’s a former Olympic power walker, a lion tamer, or that he is an orthodontist. He is none of those things. In reality, Sonnie is a financial planner based in Christchurch. Through his business, Fairhaven Wealth (, he provides independent, advice-only, fixed-fee financial planning services. Sonnie is a “recovering lawyer”: he has specialised in trusts and personal client work. He has also worked as a financial services lawyer for many years.

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