Expenses in my area would include agents management fee , normally a % of rent - like 7 - 10 %. Local authority "rates" - typically a few $1000 . Insurance ,

Expenses in my area would include agents management fee , normally a % of rent - like 7 - 10 %. Local authority "rates" - typically a few $1000 . Insurance , typically a few $1000 at least. State government "land tax" depending on land valuation. Possible strata fees and levies. Bad debts Accountant fees for proper tax return for rental property - - typically $300 - $400 . New tenant assessment fees every time there is a new tenancy. Maintenance and repairs. Sinking fund for future repairs. In my area, its not unusual for a large proportion of the rent ( 50% or more ) to be consumed by all the fees and charges. Note the above does not include interest on borrowed funds. And was the quoted 1978 price typical as determined by comparison with other building for sales in 1978? As it is not know what other ( if any consideration ) was in the sale. Could have been a family transfer for example. The above does not include "risk"