- Melb InvesterParticipant@melbinvester1Join Date: 2014Post Count: 38
anyone invest in licensed rooming house? There is a property got 7 rooms and 7% return of Income. But not sure what are the rules and regulation for these type of investments?
This is closer to the University in Melbourne.
MIthecrestParticipant@thecrestJoin Date: 2004Post Count: 992Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Going to need deep pockets to fund the deposit as lenders do not like this type of security post Childers.
The other consideration is insurance as this will eat into your gross returns.
Yours in FinanceMelb InvesterParticipant@melbinvester1Join Date: 2014Post Count: 38
This Property is 650sqm and in a good suburb with the Median of 850K
So future i can knocked down and build the new house.
In this case i thought getting 7% is bones compared to buying in this location?
So Bank will treat this as commercial?
MIJeff123Participant@jeff123Join Date: 2012Post Count: 31
I’d say bank will probably treat as commercial given that it’s a going concern, and Richard Taylor is right, the insurance will eat into the majority, if not all of your profit. Not something that I would personally look at but do your DD, it may be something you’re prepared to do.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Being a Commercial property doesn’t necessarily mean you get charged a darn site more just means you will need a greater deposit to start with.
Yours in FinanceTheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
Definitely commercial – the contract of sale should have “boarding house” listed on the front page.
Is there an existing agreement (not expired) in place as this will be quite important.thecrestParticipant@thecrestJoin Date: 2004Post Count: 992