Hi all,
long time no post!
Would like to know if any one has ever purchased and managed a Boarding House?
whilst the return is attractive, i wonder how much time needs to be dedicated in renewing leases and maintaining the property in general.
any comments?
Ta
E [aacool]Ellie Diaz
Returns look good until one considers insurances.
Childers led to a huge premium increase across the industry.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Ellie,
I have not purchased a boarding house but I have put a fair bit of research into them and I experienced difficulties in getting loans for them too.
I personally would not like to manage one myself because they can be very time consuming (form what I have heard from others).
You should also make sure the boarding arrangement is approved otherwise it could be shut down as a boarding house and you may have to settle for a lesser rent. There are also different state regulations regarding multi-room accommodation and I know some places have actually shut down because it was too expensive to bring them up to current safety standards. Obviously after the childers tragedy there are a lot more stringent laws to abide by-
This recent article may be of interest to you-
http://www.taswa.org/downloads/Policy/Boarders%20&%20Lodgers.pdf
Todd Burns
http://www.freepropertyhelp.com.auhi, never purchased a boarding house but hAVE done some research into it.insurance is high 9k + and not many insurers offer this type of insurance. the Property Owners Association has a special Boarding House Division which supplies a newsletter about 3 times a yr with lots of info and contact numbers for free advice on all soughts of property as well as boarding houses. costs about $70 ayr to join.. some advantages of boarding houses is that if they are registered no land tax is payable.also tenants are are classed as lodgers as they dont pay elec and water bills and as such are not covered by thetenancy tribunal. therefore eviction is quite easy for rent defaulters,tell them to leave or u can legally call the police and they will do it 4 you. unlike the complicated process of going to the tenancy tribunal… generally depending on the area there will be anumber of unemployed/pensioners there… these can be good tenants as the government supplies rent assistance to them with a cut off point for no extra assistance over $120 p.w as alandlord u can sign up 4 centrepay which is thru centrelink so when they get payed u get payed straight into your bank account…..generally they seem to be a bit labour intensive,however i did come across a boarding house recently which was fully run thru the real estate. got tenants in and out and hired acleaner 2 go in there once aweek. i currently rent afew houses as rooms .not registered AS BOARDING HOUSES. one is in newcastle. goes very good. one r/e agent i talkked 2 reckons there are about 40 legal boarding houses in newcastle and about 1500 illigal ones. hope this helps u out
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