Hi all,
anyone invest in licensed rooming house? There is a property got 7 rooms and 7% return of Income. But not sure what are the rules and regulation for these type of investments?
This is closer to the University in Melbourne.
MI
Hi MI.
In your plan, is someone going to live-in and run it and on what payment basis ?
Cleaners? Maintenance ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Going to need deep pockets to fund the deposit as lenders do not like this type of security post Childers.
The other consideration is insurance as this will eat into your gross returns.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi all,
This Property is 650sqm and in a good suburb with the Median of 850K
So future i can knocked down and build the new house.In this case i thought getting 7% is bones compared to buying in this location?
So Bank will treat this as commercial?
MI
I’d say bank will probably treat as commercial given that it’s a going concern, and Richard Taylor is right, the insurance will eat into the majority, if not all of your profit. Not something that I would personally look at but do your DD, it may be something you’re prepared to do.
Being a Commercial property doesn’t necessarily mean you get charged a darn site more just means you will need a greater deposit to start with.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Definitely commercial – the contract of sale should have “boarding house” listed on the front page.
Is there an existing agreement (not expired) in place as this will be quite important.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
At only 7% ROI, sounds like 7 rooms is too small a number to get a decent return on costly infrastructure and a valuable piece of land.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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