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In NSW , landlords need a water meter for each tenant in order to charge for water.
Some old flats and multiple occupancy premises have a shared meter for a number of tenants, which doesn't allow tha landlord to charge for water, at least not legally anyway, and without a meter, charges can't be enforced by Tribunal.. Need to get those meters installed.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Welcome to the Forum which you joined 14 days ago, and welcome to your first posting.
Why don't you introduce yourself first, before just slapping something unsigned and anonymous on the "notice board", and howza bout you tell us a little bit about you, and take it from there. ? Otherwise it just looks to me like a suckers game of collecting forum members and investors names and contact details without even saying who you are.
.
Cheersthecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Looks like a managed serviced apartment due to conference facility & restaurant etc. or perhaps a converted motel.
Ad doesn't address the obvious questions about nett rent after management expenses, availability of income records, who manages, age, parking, . Needs split aircon system in lounge and kitchen. Overall blurb Too brief. Presents OK otherwise.
Are you the seller, what's your interest ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
My suggestion is invite the local Catholic priest to "clear" the premises, conduct a service, bless the place, etc etc, they have various rites and ceremonies outlined in their service books, including exorcisms – certainly any sensitives would find being in the house very distressing whether they knew its history or not.
After all, it's the behaviour of occupants that creates the history, not the house, but the bad vibes live on until cleared.
Believe it or not, that's how it is.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Problems present opportunities.
It might mean you can buy either of the units cheap from a desperate seller.
You can guess what those tenants are like at paying rent.
If they are renters and the threatening type, complain strongly to the agent. If a tenant threatens a landlord, the Residential Tenancies Act in NSW takes it seriously and makes provision for termination of tenancy without notice.
BC should take action against bad behaviour.
Sounds like a situation that will not last long, use the opportunity.
Good luck
cheersthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I'm just a dummy around Council matters, but I reckon from a logical point of view, if you don't own the property then the DA is worthless, isn't it ? So unless you own the property, it's a moot point.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Josh
Brokers typically charge 3% to sell a freehold and 6% to sell a leasehold, negotiable as the commssion gets too big.Hi aof
What are you going to do with the building ?
If you are buying an existing operating motel as a going concern you pay no GST.
Much due diligence required before buying a building for conversion into an accommodation provider, council regs, local market, star rating, lots to do before choosing which type of accomm product to provide in that location.
ABS have stats by local area called " Tourist Accommodation Data By Small Area QLD " and other states, shows markets like "more than 15 rooms" or by star rating, shows month by month released as quarters, very detailed showing room $ yield, occupancy rates, bed nights, arrivals etc.
These brokers handle the bulk of NSW motels for sale, Qld will have it's own bunch. Ring a few motel owners and they will tell you who are the active frequently calling brokers in your target area.To check NSW motels for sale either leasehold or freehold, Google "Motel Brokers" and you'll find :
NSW Motel Brokers
Tourism Brokers
Hunter & Associates
Manenti Quinlan
Resort Brokers
Guy Smith BrokersCheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Dimitri
Been there. From someone who lost his shirt and clawed it back, congratulations on reaching the turning point of asking for help or advice.
I would examine the who or what behaviour got you to this level of debt, and remove or change the behaviour otherwise you will bring that with you into your comeback phase and be doomed again.
You don't have the skills or you wouldn't be where you are, so get expert help, and when you get the rescue plan, live it.
Include financial and investment education, plus personal development in your plan to fill the gap in your knowledge.
You could search this forum for popular "must read" books listed by members. Motivation is necessary on the recovery road.
Good luck
cheersthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Passive motel investment returns currently around 9%, tenants pay all outgoings on 25-30 yr leases.
Don't understand why anyone would buy commercial at anything less.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Interview the target group at some location where they clump, and get it from the horse's mouth, or get the stats from someone like famous gun demographer Bernard Salt of KPMG.
We are constsntly told of the large group of baby boomers hitting retirement and what they will want and need.
With such a large well financed group and deteriorating personal security it makes sense to cater for them.
That's thinking well and truly inside the square from where I'm looking, solid strategy, not even close to off the wall.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
IMHO – Fair comments Marketwatch – not about property so it's off topic and way past any possible constructive or beneficial spinoff for forum members.
I'm happy to request Admin to close this thread.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Last time I spoke with an insurance company handling landlord insurance and tenant defaults, they required the landlord / PM to secure a Tribunal judgement and money order against the tenant. That is then handed over to the insurance company as a claim, the landlord doesn't have to do anything more, and the insurance company is in a position to pursue the debt through the courts if they deem it worthwhile.
" I cannot see how someone being paid a low salary to manage numerous properties of various strangers is going to have the time or personal interest to be proactively involved."
In business, particularly PM, professionalism is the missing ingredient of which you speak.
PMs who act in a professional manner always act in the best interests of the landlord, otherwise they're negligent and liable.Yes professionalism is hard to find and yes they certainly are underpaid considering the difficulty of the job which I like to describe as – being required to have the knowledge of a lawyer, builder, maintenance man, IT Techie, Real Estate Agent, Tribunal Member, Mediator, private investigator, while being stuck between 2 parties , landlord and tenant, neither of whom really want to pay you the money that's required for the rent or upkeep of the property.
With the amount of verbal abuse, illwill, tension and stress and conflict involved, including death threats, it's not a job for the faint hearted, nor for the poorly trained, uninformed or unprofessional. Yes I was a PM.
Pms need to fully understand every aspect of the job, know all the laws and have immediate answers, be able to say NO in a nanosecond and be authorative take charge control freak kinda people, and hold the line for the property owner against tenant pressures.Andrew is correct, PM's need to be scrutinised during their selection, and held accountable.
But I look at it this way, like attracts like, so the level of quality of a property attracts a similar tenant.
However, a good PM can weed out 99% of the bad tenants in the selection process.
A good PM can't handle a bad tenant, only remove them, because the laws overly protect tenants.
So assuming you have a good PM then it's like this – Bad tenant, bad behaviour, Good tenant, good behaviour.
Important vitals in brief – Nice property, good PM, tenant selection selection selection.Good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Pyramid schemes are illegal in Australia. No high profile company could get away with operating a pyramid scheme in Australia for long these days, so work it out yourself.
Recruiting methods used on us as a couple lacked up front integrity, honesty and transparency.
However, the motivational material proved useful and the journey into and out of their influence was very educational.
The system of making money doesn't suit everyone's taste.
We live and work with integrity – it's essential in all our business processes, from start to finish.
That initial deception and evasiveness spoke volumes to us and the writing was on the wall from the beginning.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Don't know where the property is located. Tenancy laws vary between states of Australia and the recourse options will vary accordingly.
Self management is a gamble, moreso at a distance.
Contact the database TICA based in Concord, NSW, ask options. Used it extensively myself . Very good people. They had to fall into line with the recently tightened privacy laws which still favoured tenants. My understanding is that to list a default tenant on the database, you must be a subscriber to TICA as a landlord or PM, and have provided ample warning about your subscription to a prospective tenant prior to agreeing to rent them a property, so the tenant is deemed to be adequately warned about the database consequences of a default. It's still so one-sided that it's easy to feel like you're the only one on the see-saw.Usually too hard getting money back from a fled tenant, especially a damaging one, you're obviously not in their league, you're too nice. Rarely do they have any assets anyway.
Suggest you photograph the damage extensively, file it away, avoid slander or your property might change hands, cop the cost, fix up the property quickly, get a good PM who is tough on screening tenants, doing photo inspections, and uses a database like TICA. Insist on being in the loop to vet tenancy applications so you can see if the PM is screening them closely and which ones they favour. The type of property will attract the corresponding type of tenant, but tenant selection is critical, like position position position.
All the above is based on very little info from your post, just offered as suggestions up front to save time.
Good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Attn Moderator / Admin / Anyone
Can someone tell me what this Dubai post is all about ?
My geography is not so good, is Dubai anywhere near Nigeria ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Helen
As just one of the mob here, welcome and hope the forum is great for you also.Just found out myself last month what a Town Planner does when not working inside a Council.
I needed to find out how to change the title of a property from Strata to Torrens, and if it was possible in this case, then how to get plans drawn, estimate costs, get DA prepared & submitted to Council and shepherded through those hallowed halls of the gods etc – enter the independant Town Planning Consultant who someone nameless at Council recommended – so things are now looking brighter again.
Had no idea what they did.
Hope you enjoy it and also hope you can start creating some wealth for yourself, no doubt somewhere in property development so you're in one of the right places here. Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
You might price it several ways – render or plaster. Render is tougher. According to one renderer I spoke to a few weeks ago who does a lot of heritage work, best to render with the gray stuff, then wait 2 weeks then add colour coat. S'pose it depends if you're going to live in it or it's an investment property.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Dr Markie
From the financial gain perspective, perhaps you should run all those scenarios by your personal financial expert while also considering your exit strategy.
Will you be staying there until you retire ?
Will your practice grow and include more medicos ?
In the future, can you on-sell the practice or lease or freehold to another practitioner or investor ?
If not, and you plan to move out of premises you own freehold, you'll be trying to sell commercial premises without a tenant or rent income, which affects the value.
Depending on how many medicos the area needs or will support, you might consider early planning for the extra space in your premises and business infrastructure to allow for future growth.
Good luck Doc
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Kevroy99
Decisions and assumptions to make first.
I can make comments about motel investment but not holiday units because I don't have experience there.
Since country leaseholds are a higher return, decide if you want to live away from the coastal fringe.
Brokers say buy "coast for show, inland for dough", comparison will show it's true.
Low equity imposes income limitations of course.
Let's assume Banks lend 80% of your $160K residential equity = $128K and require 50% dep for a leasehold.
Then after paying legals etc, you're looking for a leasehold around $240K , range 30%-35% ROI = $72K-$84K nett income less Bank interest. Makes it hard at that low income rate to get ahead of the fixed costs wave always trying to swamp you.
The trick is to buy a big enough income stream to grow and accumulate your wealth and accelerate away from the costs wave.
To quote the great Peter J. Daniels, who I had the pleasure of hearing speak at the propertyinvesting.com 3 Day MegaConference at Darling Harbour in May this year – " build reserves " . That deposit or equity is everything, almost.
Obviously you're already doing this with your existing equity, but it matters even more when assessing motel investment. Owner operated motel lease investment really boils down to receiving income which is the difference between the % cost of finance and the % leasehold ROI, which in this example means 30% minus 8% = 22%. That being the case, you can receive income of around 22% of what you pay for a leasehold, so you ideally want that to be 22% of a very large amount.
But since that very large amount is limited by your equity ($160K), then you need to source extra funds for security /deposit which will generate more of that 22% income return.
There is much information posted on sourcing Joint Venture funds and Other People's Money so you may want to search those options. In the recent past, Banks have been willing to finance motels at residential rates provided the deposit security / equity is residential.
By the time they decide to sell, many motel leasehold owner operators are very tired, or have health issues, or want to be somewhere else, or all of those. Bearing that in mind, you have the situation where someone wants to get out and someone wants to get in. Work on that.
Perhaps you could manage a motel for 12 months under contract before settlement, helping the vendor get out quickly, have certainty of sale at a fixed price and date, time to prove and maybe improve the figures and earn more deposit for yourself, while living in the motel at a dramatically reduced cost of living while earning rent from a tenant in your current PPOR.
Capital gain – the simplified story is that motels are valued by their bottom line – nett profit.
For example, IF :
you buy a motel leasehold at market price/rate
and you improve the nett profit by $10K p.a. over 2-3 years, and
if the going market rate has not changed, then
the resale market value of the leasehold has increased by around $60K.
There are as many options as you can negotiate, this is a very flexible area of investment.
Finance is vital to motel investment and banks attitudes to motel investment vary.
Talk to finance brokers as well. The difference between finance deals can create viability. Run everything by your accountant before and during shopping.
To check motels for sale either leasehold or freehold, Google "Motel Brokers" and you'll find :
NSW Motel Brokers
Tourism Brokers
Hunter & Associates
Manenti Quinlan
Resort Brokers
Guy Smith Brokers
Hope this post is not too long for general interest.
You're welcome to more info if you need it.
There are some very helpful finance brokers on this forum who have helped a lot of investors and earned their place in the market.
All the usual provisos apply here of course, so I have to say these things to CYA and mine – this does not mean that motel investment suits your financial situation, and this is not financial advice because I'm not qualified to give it, and you must satisfy yourself from your own due diligence and personal financial information together with professional advice from your accountant or financial planner that any course of action is adviseable. Bless all the lawyers.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi JBJ
Suggestions only, make your own decisions.
Don't despair entirely.
You've gained some priceless benefits from this experience.
REA has breached the agreement so you are entitled to move to another one immediately.
You now know the 3 most important tasks for a PM are tenant selection, tenant selection tenant selection.
TICA is excellent and you can request your next PM give you printouts of searches on that database.
Don't use a PM who doesn't use TICA.
Insist on immediate ruthless action by PMs on arrears.
Insist on max inspections and photos and reports.
Ease off a tad on model tenants if you find any.
Ask prospective PM for written statement of expertise and how defaults are handled.
Insist on being in the tenant selection process.
Only expect tenants to be as good as your property.
Don't accommodate the unemployed.
Ask the PM to sneek a peek inside the applicant's car when showing the property, it's an indication of how your property will look in a few months.
Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
