The rent (of $34,500 a month) is too low!

Sonnie Bailey

2 August 2013

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!


Other articles you may like:

Adiós, amigos!

Adiós, amigos!

Articles I never published

Articles I never published

2022 – a belated movie & TV media retrospective

2022 – a belated movie & TV media retrospective

“Buy things, not experiences”

“Buy things, not experiences”

AI and the last mile

AI and the last mile

Influencer marketing 🤮

Influencer marketing 🤮