Indianinoz Posted August 29, 2015 Share Posted August 29, 2015 Hello, What is the average ratio of purchase cost of a residential property to its annual rent in Australia? I know it varies from state to state and region to region but what is the standard? For eg. in Mumbai where I live in, a 2 Bed room flat with 2 wash rooms of around 800 sq. feet carpet would be priced at around Rs.1,70,00,000/-. The same flat on rent would be priced around Rs.35000/- per month i.e. about Rs.420000/- p.a.. Which means the purchase cost to annual rent ratio would be around 40. So if a residential property is priced around Rs.3,00,00,000/- then the optimum rent would be somewhere close to Rs.7,50,000 per annum. What is the standard for all Australia and more specifically Hobart although I doubt the ratio would differ too much by state or region? Link to comment Share on other sites More sharing options...
NickyNook Posted August 29, 2015 Share Posted August 29, 2015 The way you are writing large numbers is kind of odd. How much is 1,70,00,000? Is this supposed to be 1,700,000? i.e. 1.7 million? Or do you mean 17,000,000? i.e. 17 million? Or is it something else entirely? It is usual to place the commas to separate every three digits starting from the right. Similarly how much is 3,00,00,000 supposed to be? 3 million? 30 million? Or 300 million? Link to comment Share on other sites More sharing options...
Indianinoz Posted August 29, 2015 Author Share Posted August 29, 2015 The way you are writing large numbers is kind of odd. How much is 1,70,00,000? Is this supposed to be 1,700,000? i.e. 1.7 million? Or do you mean 17,000,000? i.e. 17 million? Or is it something else entirely? It is usual to place the commas to separate every three digits starting from the right. Similarly how much is 3,00,00,000 supposed to be? 3 million? 30 million? Or 300 million? I'm actually putting commas as per the Indian format. In India, we count in thousands(so last comma after 3 digits from the right), lacs(so second last comma 5 digits from the right), crores(so third last comma 7 digits from the right) and not in millions/billions etc. The first figure is 17 million and the next figure is 30 million. Link to comment Share on other sites More sharing options...
Parley Posted August 29, 2015 Share Posted August 29, 2015 Not many Indians on here though. Link to comment Share on other sites More sharing options...
Diane Posted August 29, 2015 Share Posted August 29, 2015 I'm actually putting commas as per the Indian format. In India, we count in thousands(so last comma after 3 digits from the right), lacs(so second last comma 5 digits from the right), crores(so third last comma 7 digits from the right) and not in millions/billions etc. The first figure is 17 million and the next figure is 30 million. Wow! Thought I was too old to learn something new every day but you've taught me something today! That's really interesting, thank you. I thought in countries that used Arabic script, the representation of numbers was universal. (Can't help with the whole maths issue - @dmjg is a maths teacher I think so will probably be along soon to help) You could always look at a site like http://www.realestate.com.au and compare rental and purchase prices of similar properties in the same city Link to comment Share on other sites More sharing options...
Sustain Posted August 29, 2015 Share Posted August 29, 2015 I'm actually putting commas as per the Indian format. In India, we count in thousands(so last comma after 3 digits from the right), lacs(so second last comma 5 digits from the right), crores(so third last comma 7 digits from the right) and not in millions/billions etc. The first figure is 17 million and the next figure is 30 million. Regards IIO Forgetting the difference in formatting your reference to a annual rent to purchase price is used widely as a return on investment. For example we bought a investment house in 2008 and sold in 2014 [TABLE=width: 541] [TR] [TD]Year[/TD] [TD]Weekly Rent[/TD] [TD]Annual[/TD] [TD]Annual Rent[/TD] [TD]Bought/Sold Price[/TD] [TD]Rent to Price[/TD] [TD]Ratio[/TD] [/TR] [TR] [TD=align: right]2008[/TD] [TD=align: right]700[/TD] [TD=align: right]52[/TD] [TD=align: right]36,400[/TD] [TD=align: right]1,300,000[/TD] [TD=align: right]2.8%[/TD] [TD=align: right]36[/TD] [/TR] [TR] [TD=align: right]2014[/TD] [TD=align: right]1,500[/TD] [TD=align: right]52[/TD] [TD=align: right]78,000[/TD] [TD=align: right]3,600,000[/TD] [TD=align: right]2.2%[/TD] [TD=align: right]46[/TD] [/TR] [/TABLE] Link to comment Share on other sites More sharing options...
Indianinoz Posted August 29, 2015 Author Share Posted August 29, 2015 Regards IIO Forgetting the difference in formatting your reference to a annual rent to purchase price is used widely as a return on investment. For example we bought a investment house in 2008 and sold in 2014 [TABLE=width: 541] [TR] [TD]Year[/TD] [TD]Weekly Rent[/TD] [TD]Annual[/TD] [TD]Annual Rent[/TD] [TD]Bought/Sold Price[/TD] [TD]Rent to Price[/TD] [TD]Ratio[/TD] [/TR] [TR] [TD=align: right]2008[/TD] [TD=align: right]700[/TD] [TD=align: right]52[/TD] [TD=align: right]36,400[/TD] [TD=align: right]1,300,000[/TD] [TD=align: right]2.8%[/TD] [TD=align: right]36[/TD] [/TR] [TR] [TD=align: right]2014[/TD] [TD=align: right]1,500[/TD] [TD=align: right]52[/TD] [TD=align: right]78,000[/TD] [TD=align: right]3,600,000[/TD] [TD=align: right]2.2%[/TD] [TD=align: right]46[/TD] [/TR] [/TABLE] I guess then its the same as Mumbai, India. Around 40. Which city did you buy and sell this property btw? Link to comment Share on other sites More sharing options...
Sustain Posted August 29, 2015 Share Posted August 29, 2015 This was Sydney Link to comment Share on other sites More sharing options...
NickyNook Posted August 29, 2015 Share Posted August 29, 2015 I'm actually putting commas as per the Indian format. In India, we count in thousands(so last comma after 3 digits from the right), lacs(so second last comma 5 digits from the right), crores(so third last comma 7 digits from the right) and not in millions/billions etc. The first figure is 17 million and the next figure is 30 million. Hint: It would be a smart idea to learn to use the western way of writing large numbers before you start looking for that accountancy job in Australia.:rolleyes: Link to comment Share on other sites More sharing options...
Diane Posted August 29, 2015 Share Posted August 29, 2015 What is the standard for all Australia and more specifically Hobart although I doubt the ratio would differ too much by state or region? Varies hugely from State to State as well - I've never looked at property prices in Hobart, but would imagine they are more similar to Adelaide than Sydney - and prices and rents have hardly moved at all here in the last five years! Link to comment Share on other sites More sharing options...
Guest Anya Posted August 29, 2015 Share Posted August 29, 2015 It is around 50-53 for a house in Boroondara council/eastern suburbs of Melbourne. Rental yields are 2% or even lower. Crazy! Link to comment Share on other sites More sharing options...
rammygirl Posted August 29, 2015 Share Posted August 29, 2015 It also depends on the house. For example a small two bed unit here in Adelaide would maybe cost $450,000 and rent for $400 per week. A $1.1 million three bed house in nice suburb would rent for $800 per week. Sorry can't be bothered to work it on annual basis. Generally rent is expressed as a weekly amount here rather than monthly. Link to comment Share on other sites More sharing options...
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