Property Assumptions for FIRE in Australia

Property results can look strong or fragile depending on a small set of cashflow and timing assumptions. This guide is about choosing realistic ranges, not defending one optimistic input.

Vacancy and rental yield move the whole cashflow profile

Rental yield affects gross income, while vacancy reduces what you actually collect. Test a clean baseline first, then try a tougher case with lower effective rent to see how much the property path depends on occupancy.

Maintenance and management are not rounding errors

Management fees, maintenance, and annual property expenses can materially change after-tax outcomes. If the property path only wins under very light expense assumptions, that is important information, not noise.

Sell year changes both tax timing and final outcome

The year you sell affects realised gains, transaction costs, and the shape of the later years. Compare at least two sale timings so you do not mistake one chosen exit year for a universal property edge.

Use ranges, then compare the pattern

The best way to use these inputs is to save multiple scenarios and compare the pattern. If property only wins in a narrow band of low-cost, low-vacancy assumptions, that tells you more than one headline result ever will.

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