Dear Forum,
I recently purchased a property in the Melbourne CBD, in a basement level of an office building. The property had recently been fitted out as a biotech lab, and has significant depreciation benefits. However the only tenant our agent has found has been a bar operator. However, at a Body Corporate meeting, members expressedopposition to this use. However, subsequently the Body corporate abdicated to a professional Body Corporate Management that suggested ( privately ) that we were able to pursue whatever use we chose. Standard Body Corporate Rules apply. My question is : can the Body corporate block our use of the premises as a bar ? ( subject to council approval ). Further, what actions can be taken to overcome their oppostion to this use. I prefer to avoid legal action as it is costly and protracted. The ground floor is used for as a retail shop.My position is difficult as a basement cannot be used for office space. Basement premises in the district have been used as bars or restuarants, so I anticipate that there must be a solution to this impassse. I would welcome any advice from the audience
Sicerely,
Mike.Mike
Let me get this right…
You purchased something fitted out as a biotech lab that you want to turn into a bar, except this plan has been harpooned by the “body corporate” – presumably a committee of other owners of suites / offices on the remaining levels of the building?
I’ll proceed on the basis this is a correct assumption.
I think that you need to spend time trying to find out why there is opposition to the bar idea and then look to create a win-win outcome that results in the fears associated with the rejection being overcome.
On another level… what lessons have you learned about buying investment property from this experience? I’m sure you have a lot of valuable insight that would benefit the forum!
Hope to hear from you soon.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Dear Steve,
Thankyou for your comment.
i was initially drawn to make an investment in commercial property, as i realised I could not afford to negative gear another residential property in a blue chip Melbourne Suburb. I was an underbidder on an office floor in the same building. However my wife was keen to purchase the basement when the bidding stopped at a low level. The property had 160K of unused depreciation benefits and the agent had stated it could be rented for $30k year ie 10% yield.
we have had a few bites from other tenants at this level , but for various reasons haven’t been able to accomadate them. There are a number of basement restaurants and bars in the CBD, so I believe the property has good potential, however I have to serviice a moderate cashflow from other sources. Eventually, it will pay off. I believe most positive cashflow properties come with a “catch”. How, one responds to this can determine the difference from success to hardship.
I have some office equipment ie filing cabinets, chairs, boardroom table, lab tables, sink, emerency shower etc. I wonder, if anyone can suggest how to maximise proceeds from this.
Secondly, does anyone know of any Melbourne based tradesman / company that can strip the premises of unwanted fittings and partitions.( economically)?
I Wonder if any of your other readers have had experiece in unleased commercial property or value adding, beyond simple house or flat renovating.
Sincerely,
Mike.
The topic ‘Body Corporate Issues.’ is closed to new replies.
