Forum Replies Created
2013 Calendar year was a mixed bag for regional moteliers with political unrest and coal prices the culprits.
Hoping the next 12 months will be better for them all while some just cruised right through without any changes, depending on
the strength of their location and their market. RBA has helped, another cut would be great but the consensus seems to side with
holding not cutting.
Pauses are good times for upgrades and refurbs while a few rooms are empty.
We're painting too before the cold weather. Painters tell me it won't stick below 10c temperature so winter no good for painting.
Just a reminder for those thinking of passively investing, landlords typically get 9% returns,
Freehold owner operators get about 15%,
and operator lessees get about 30% and a free home,
not sure where else that's available but I'd be interested to know.
Still in Wagga operating our own motel and enjoying the milder weather after the heatwaves.
Managed to save most of the gardens but not all, planting grass again.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Paul n Marn
How's the motel purchase going and can u post a bit for us as an update ?
Hope you're doing very well.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
CBA IO loan $750K against motel lease 5.7% – is that competitive ?
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Fools gold, sorry.
good luck
cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Discuss rent levels of your property with your PM. Compare it to other properties and ensure its rent is at the level of market rent for that property with a meter, whatever that is.
A tenant may argue that the rent level without a water meter was already a bit high and likely inflated a bit to cover water (illegal but arguable) but they accepted it knowing there would be no water charges, so a rent increase after installing a meter would be unreasonable, they may say.
So ask your PM to be prepared with comparative property rent level data to support any rent increase, just in case.
Good luck
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
In say a block of say 16 units for example where it's 4 levels or 4 on each floor, if you're merging 2 on the ground floor,, are the engineering issues major where you'd be opening out a dividing wall perhaps to create a larger flow through lounge room for max view ? Assuming the wall is structural – is this a def no-no or can it be done without employing Lend Lease ?
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Several banks have told me over the last 2-3 years that a residential property or equity in one can be used as security for a commercial loan, in particular a loan to buy a motel freehold or leasehold, and in doing so would only attract residential % rate.
Is that still the case in the current experience of the Forum's finance brokers ?
Would the same apply for buying other types of commercial property like shops, factories or office space etc ?
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi David.
Have you assessed what's on offer with your local competitors and how you could improve your accommodation offering to increase the rent and occupancy ?
Suggestions .
Convert to furnished serviced apartments with external signage and rent online..
Furnished student accommodation.
Refurb and go upmarket.
Might be a simple answer to improving the bottom line.
Good luck
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
You either need a bigger margin or the tenants pay their own utilities – they're more frugal when they pay their own utilities.
Check with Dept Fair Trading or RE licencing body in your state on what kind of RE licence you need, some are quite easy.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
So which one is tax deductible ?
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
smartcube wrote:. . . .this is not for an investment.this is for my living.
Spoil yourself, get carpet throughout and tiles in wet areas like bathrooms n kitchen.
cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi BomberRoui.
The REA needs to be able to show the buyer where the property boundaries are for the property he is selling.
Pretty basic stuff for a REA, especially if it requires the expense of moving fences or moving anything else and involves neighbours.
Subdivision would require a survey. Request a copy.
If no-one can show you where the boundaries markers are, then request a survey and or rectification to your satisfaction as a conditional part of the deal.
Good luck
cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Qlds007 wrote:. . . . this year my partner and I are trying to make 100 equity millionaires. . . .Hi Richard.
Would you pls PM me about this.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Smilysharyn. It seems they don't get up as early as you do, but someone will have a name for you later perhaps. welcome to the forum. check out the programs offered by Steve McKnight, we thoroughly enjoyed the mentoring through the RESULTS program and benefited way beyond the cost, even in our niche of motel investment and operations, and while you don't mention what aspect of property investment you want mentoring in, the options were unlimited .
Good luck
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi All.
Any update on your search for a hotel motel in Bathurst or elsewhere ? I notice the Panorama City Hotel Motel in Bathurst is for sale again, well located and very busy, stayed there a few times, no vested interests in it myself, but have plenty of info on it.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi 607.
You can place managers in there but can't tell them they're long term when it's on the market so I assume you mean longer than just relief managers. Difficult to employ managers with the property on the market unless they're in the know. Been there done that. The managers need to know you're selling and that they could be out the door 6-8 weeks after a deal is done. With one of our motels we employed managers to handle the day to day operations and the selling process and rewarded them for both.
We guaranteed them 6 months work minimum, then 3 months min salary after a deal is done. During the sale process it's obviously very important that the motel looks its best, expect potential buyers to mystery shop and stay there. Manager slackness is not an option and causes prompt termination. Reporting is detailed and frequent. KPI's are realistic. Regular surprise visits to the property are essential.
If the marketing of the property is done properly, you won't need the managers for long anyway.
Some questions :
How long has it been on the market ?
How is the property being marketed ?
Had any buyer inspections ?
Is the price right for the market ?
Good luck
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I use McCloskeys in Newcastle, and PSC Horsell in Sydney – Geoff McLeay.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
It's not democracy if there's no transparency, no accountability, no Freedom of Information Act, and it encourages condones and covers up mistakes and corruption.
As such, it can't last so the clock is ticking.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
You guys are very helpful, good on you.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Jarrah is so beautiful. We bought a heap of jarrah furniture a few years ago, each piece weighs a ton, last housemoving had to tip the removalist guys a lot.
well worth it though.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
