Don't believe this has been discussed before but i could be wrong. A while back i looked into taxi plates as an investment, but lost interest. Anyone ever bought taxi plates or has looked into more recently? Thoughts? Experiences?
It always used to be they followed capital city house prices. Rental return was very similar too. Haven't looked into them for about 6 years so things might have changed. malachii
Last time i looked plates were round $300k in NSW with a $500 per week return. Unlike property no maintainance or other bills and no annoying tenants to deal with. However as Whinfell said government interference is a big negative. surpised few stackers have looked or invested in plates. One old guy i knew bought 4 plates in Melbourne 40 years ago and claimed it was the best investment ever.
Yes 40 years ago ,I wouldn't be into them now though , I've had friends in the business ( actually running cabs )
Unless actively involved in the industry, I'd be wary about entering any industry so obviously driven by the whims of politicians. The problem with whims is that they are whimsical.
Was just listening to a story about this on ABC Radio. 10 years ago, a taxi plate in Victoria cost $250,000. Now they go for +$400,000. Ultimately all the various Taxi companies are amalgamated uder just 2 overaching corporations. Furthermore, one of these 2 companies "Combined Communications Network" not only owns Cabcharge (which has been found to be overcharging by as much as 75% and got choice magazine's worst company award last year) also has the monopoly on taxi dispatch fequencies to which operators must pay a fee. 'Combined' also owns amongst other taxi companies, Sydney's biggest taxi company. It's a total rip.... all the money goes to the top and no one underneath gets a dime. And worse still compaints about taxi service nationwide have doubled every year for the past decade! http://www.abc.net.au/radionational/programs/saturdayextra/hail-to-the-taxi-industry3f/4399534 http://transition.accc.gov.au/content/index.phtml/itemId/476739/fromItemId/751043
The taxi plates in Victoria MT plates (metropolitan) Have Nil value according to the banks Few years ago taxi plates almost touched $500,000 and you had to on a waiting list, Banks were giving loans 60-80% of the value Of the plate, now the bank are saying nil for taxi plates If you own a plate now you have to compete with the Victorian premier he will be leasing unlimited taxi plates to whoever have or wants to apply for taxi operator , he capped the leasing of the plates to $22.000 anyone can lease from the state government , so private owners will have to lease their plates for under $22,000 In 2007 I was operating couple of taxis in Melbourne I was paying $1600 per month lease on each taxi , In 2010 I got out of the industry and operators were paying $2800 plus gst per month Anyway I think is still good investment if you can get $20.000 per year or $1700 per month , to get $17.000 per month from a property you need to invest 400-500k plus to buy a rental property that you can rent it out $400 per week !
If the number of taxi plates stay same 5500 taxis in Melbourne I think , plates are worth 400,000 plus If by next year we end up like some third world country with 25.000-50.000 taxis in Melbourne than maybe taxi plate will be worth nothing
Hi Thunder. I appreciate your insights as someone who knows the industry well. Looks like taxi plates, as a once reasonable investment, has been screwed by government. Shame.
