7 Bed Room House

[MelbInvester]

Hi All,

I found one property with 7 bed room (Convert old 3 bed house to 7) , 3 toilets and 640SQM block of land (20M x 30M ) in closer to Dandenong, Melbourne.

On average total out goings per month comes to about $500
Total Rent receive per month comes to $4600.

All rooms are currently occupied. And charge $20 per month extra for giving the internet connection as well.
All the rooms are given out on month to month contract and they should give at least one months notice if they wish to vacate their rooms.

Currant owner doing this privately.

This property is asking $465K is there any risk that buying this sort of property?

MI

 

[TMNT]

sounds like student accomodation

different kettle of fish especially if its not you going through an agent

 

[Mindmaster]

Probably illegal.

Would need to meet boarding house requirements, fire standards and lots more.

 

[Peter_Tersteeg]

I've met a few people doing this over the years. It is possible to find property managers to take it on, but it's not exactly their ideal property. Most people I've met self manage it.

They need to actively manage the property, usually well in excess of anything more mainstream. It's not something I'd suggest trying to take care of from China.

If it's not legal, don't even go there.

 

[GreyGhost]

I had a former co-worker of mine who had one of these.
7br house in Box Hill getting $125per week per room.
She was Chinese and she self managed it.
Good return for those who dare..

 

[westminster]

Hi All,

I found one property with 7 bed room (Convert old 3 bed house to 7) , 3 toilets and 640SQM block of land (20M x 30M ) in closer to Dandenong, Melbourne.

On average total out goings per month comes to about $500
Total Rent receive per month comes to $4600.

All rooms are currently occupied. And charge $20 per month extra for giving the internet connection as well.
All the rooms are given out on month to month contract and they should give at least one months notice if they wish to vacate their rooms.

Currant owner doing this privately.

This property is asking $465K is there any risk that buying this sort of property?

MI

Huge risk if it doesn't have a permit/allowance for running as a boarding house etc. You can't have more than 5 unrelated parties living in a house in most States.

Councils crack down on these all the time and fine Landlords and then you are left with a very ordinary investment

 

[superAndrew]

I would ask owner for financial records to check net income and periods rooms were vacant.

Cheers
Andrew

 

[MelbInvester]

Thanks, I know this property is in the market for long time. Bit greedy when i see the cash flow...

 

[Rolf Latham]

I would ask owner for financial records to check net income and periods rooms were vacant.

Cheers
Andrew

thats generally fine for sale of a business of a going concern

Good luck with most boarding house / student rentals

ta
rolf