Advice on boarding house dilemma

From: C M


I am in need of some advice on behalf of a good friend of mine…..

Her father owns a large property in Sydney that is used as a boarding house, yet he has become ill and too fragile to run the place for too much longer. He is also having problems with insurances, due to its status as a boarding house. He sees his only solution to sell the property, even though it currently provides him with a valuable source of retirement income.

I have tried to persuade my friend to find a win-win solution, as the property has so much potential and it would be a great shame if it were sold, as it would only provide temporary respite for her father, yet as an inheritance for her and her future, it would be disguarded. I think I have won her round but one of her main stumbling blocks is the insurance – it seems no-one is willing to insure (is this due to the events in Queensland a while ago?). I know so little about this area of property but I would like to go and do some investigation on her behalf so that she has as much info as possible before she gives up on finding a solution.

One of the realtors I work with said that the government is handing out grants to people who are upgrading boarding houses, with the grants being up to $50,000. This is for projects such as new fire exit signs, fire doors, alterations to meet boarding house regulations. He has forgotten the website where this information was states….does anyone know anything such as this? As regards the insurance, are there any creative ideas? The building does have the potential to be turned into several self-contained apts but I think she would feel this would be too daunting an undertaking, although I would be happy to do this for her. Her parents currently live in one wing of the house and the boarders the other. Is there somewhere/someone I can speak to that knows about insuring boarding houses?

If you can provide any assistance or suggestions, please post them as I feel this is a great opportunity for both her and her family…..it would be such a waste to sell such a great asset with such potential.
 
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Reply: 1
From: Dale Gatherum-Goss


Hi CM

I have an insurance broker who has looked after me, and my clients now, for 9 years.

His name is Rod Fraser and his email address is:

rod@fraserinsure.com.au

Good luck

Dale
 
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