Motel Investment

Great information here that we will keep in mind.

https://townsville.century21.com.au/

First post, new to the forum.

I was searching out motel brokers in NSW (I’m also interested in Queensland) and found the forum.

Long story but I’m looking to buy a freehold passive investment motel ASAP. I’ve been in property for a long time but it’ll be my first motel.

I’m ready to buy now and have only really been ready for a few weeks now, but I’ve been looking for a little while and had seen a lot but perhaps didn’t understand how quickly for sale turns to under offer! Everything that I’ve looked into and wanted has evaporated before I could act.

I’m left now with just a couple of options. I have a feeling it’s because of interest rates dropping recently. Would you agree or is it normal for these things to sell quickly?

I’m a bit restricted on what I can consider because I survive on overseas income and the lenders won’t consider that for their sums so I’m trying to buy outright which restricts my budget. Once I get more established in Australia I should cure that with local income for their sums, but in the meantime I’ve only a couple of choices.

So I have two questions –

Does anyone know of a good broker that can definitely find finance that considers overseas equity and income as well?

Would anyone like to suggest an ownership structure? I currently have nothing better than buying as myself and relying on the lessee indemnity. Im not too impressed with complicated structures but at the same time perhaps I need advice on that. We were planning to keep our house in my wife’s name and the investments in my name and keep them separate from each other.

Something that bothers me about Pty Ltd is that your benefits from depreciations seem to evaporate when you then pay yourself the money as a salary as you’re declaring it twice so the depreciation results in no tax savings. If it’s in my name (or something else?) then the final taxable result is lower after depreciation and left alone after that.

Any tips would be appreciated.

Hi ttrtr, it is correct to say there is a lot to learn. I have been studying this industry for about 2 years trying to establish a new system of owning & developing several motels. It is difficult to break into a system that I admit has been successful.
But the world has changed, in particular, banks & finance. It has also been changed by AIRBNB, UBER, TRIVARGO,etc. The first name is in fact a challenge to the motel industry, people have learnt quickly that their house can become a money earner. The above booking agent is in fact dipping into some industry profits.
The major thing to understand is that FREEHOLD MOTELS returning 6% to 12% & gain in value at perhaps 2 to 3%pa, fall far short of leasehold properties that return anything up to 30%+ over 30 years. Yes the lease declines in value but over 30 years the return is substantial.
My proposal is a group to purchase several motels, NO MORTGAGE. Please call 0419798990, David, anytime.

Hi TTRTR,
To give you some food for thought, we are close to finishing a new website & company to form a group to purchase 20+ motels or management rights with leasehold at 25 to 30 years.
This will be very profitable, with you to chose to manage or not, with a salary.
For more info please call David Boyd 0419898990, regards David