I am contemplating to purchase a 3 bedroom house around Griffins University (QLD). My budget is below 200K but the houses at suburbs close to Uni (Meadowbrook and Daisy Hill) starts at 250K and that is something that I am not comfortable with. My strategy is to ask my rental manager to rent out each room individually (making it cashflow positive [biggrin]) but the only suburbs that fits with my budget is nearby suburbs (Loganlea, Kingston, Woodridge, Bethania) which is not close to university (implying I may be renting out to people other than Uni which I am unsure whether there is a market for renting out each room individually??) Or should I focus on getting a 2 bedroom within Meadowbrook or Daisy Hill that fits with my budget?
Cheeers
johnWant to join financial independence before 31 years old, currently 25
H John,
The greater driver will determine where you invest.
If you budget is fixed at $200k then it will be one of those ‘cheaper’ suburbs. If however you really want (need) the cashflow provided by uni students then you are better off closer to the uni.
Derek
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0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by jcls79:
My strategy is to ask my rental manager to rent out each room individually (making it cashflow positive [biggrin]) but the only suburbs that fits with my budget is nearby suburbs (Loganlea, Kingston, Woodridge, Bethania) which is not close to university (implying I may be renting out to people other than Uni which I am unsure whether there is a market for renting out each room individually??) Or should I focus on getting a 2 bedroom within Meadowbrook or Daisy Hill that fits with my budget?First point of consideration YOUR BUDGET, second point of consideration YOUR BUDGET, and final point….you guessed it!!!
From my understanding, students are generally the only ones who make use of share accommodation in which they rent by the room, therefore as your targetted market does not match your financial budget you will (as you indicated) need to modify your strategy. As Derek stated, the further from the uni the less likely your tenants will be students.
Buying a cheaper property (ie. 2 bedder) does not necessarily mean it will be +CF and it really depends on the area (in this case, as per that nominated which seems to be within your price range) and what the rentals are within it. I suggest a bit more research may be the order of the day.
Good luck,
Jo
AN Idea…
Have you tried to negotiate a lease option with the right to sublet? – This eliminates the need to get finance and gives you the flexibility to negotiate option fees and anything else you can think of can be thrown in to sweeten the pot a little to make it appealing from the sellers perspective.
Cheers
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.jcls
I have no experience in this area, however I would advise that you look into rules for boarding houses as I believe there were some significant and potentially costly laws introduced post the Childers tragedy in QLD. I guess check with the local council.
Cheers, F.[cap]thanks everybody for your reply. I have checked with REIQ and residential tenancy governing body in QLD and they say as long as the property has less than 4 bedrooms, myself and property manager do not need a license to carry out this activity. However, I am keen to learn about the lease option with the right to sublet? Can somebody please explain this in a bit more detail please?
Cheers
johnWant to join financial independence before 31 years old, currently 25
Just another interesting situation. I’ve tried to contact a few insurance companies and brokers, but they are not open to the idea of renting out each room individually. They will not provide any insurance even if the property is managed by rental manager and a bond is collected. I was wondering does anybody knows of any insurance companies that is open to providing insurnace when each room is leased out individually?
Cheers
johnWant to join financial independence before 31 years old, currently 25
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