SHOULD YOU MAKE YOUR RATES PAYMENTS MONTHLY OR YEARLY?
Darryl from Facebook asks: “Do you pay your rates yearly or monthly, assuming they have no discount for full payment?”
Nathan gets most of his bills diverted to the real estate agents who manage his properties, so he doesn’t deal with the majority of costs coming through. He breaks it down into the following steps.
1) Bills, such as rates notices, are sent directly to the property manager, who pays them at the end of each month.
2) Property manager sends out a monthly invoice which goes to My Property Tracker.
3) The MPT team enter the invoice into Nathan’s account.
GETTING THE MOST OUT OF EVERY DOLLAR
Generally speaking, Nathan prefers to pay bills quarterly rather than yearly, because he would rather hold onto his money and use it for investing in more properties. Since paying rates for the whole year brings no discount, he would rather pay per quarter and free up his money to ensure he can make his next big deal.
DIFFERENT STROKES FOR DIFFERENT FOLKS
Although this is Nathan’s strategy, different investors are in different situations – and for some, this may not be the best idea. If you experience job insecurity, or you have a baby on the way, for instance, it may be better to pay for the year so that you don’t have to worry about it.
How do you take care of your bills? Have you joined the many other investors who have streamlined their paperwork by using My Property Tracker? Please share your experiences in the comments section below.