Hi all,
Not sure where this thread should go, but anyways......
Looking for your devine experience once again
I'm interested in hearing from anyone who has a boarding house in inner Sydney. We were never looking for a boarding house, but something has come up that I don't want to just let slip by without doing all the research I can.
Some of the issues I'd love to hear people's thoughts on:
1. Finance!! What are the options? My understanding is this must be treated as a Commercial Property (it's zoned residential and is a large house - all the rooms are being used as bedrooms). What's the highest LVR people have been able to get for Boarding Houses? We would need to use the income for serviceability purposes (it's approx 10% gross rental) - so trying to say we're buying as a PPOR is not an option.
2. Does anyone have any experience with SEPP 10? (State Environmental Planning Policy No. 10 - Retention of Low Cost Accommodation) - which basically puts alot of restrictions on being able to demolish/alter/strata/or change the use of the property without Council approval. The Suburb falls into this policy, and I believe the house. The contract says "Council's records indicate this property may be a Boarding House. Consequently, the property may be subject to SEPP 10 which aims to facilitate the retention of low cost rental accommodation." I think this policy is a large factor in the current price of the property. We would be keeping the property as a boarding house for quite awhile - but in terms of the future, it's a nice period terrace from the outside so being able to convert it to a house or use the large land in the future would greatly increase the CG - however how hard is it to get approval with this policy?
3. Council requirements (eg. fire safety, etc). Where can I find the actual laws regarding boarding houses inner Sydney?
4. Peoples general experiences with boarding houses. Most of the tenants in this house (currently) are housing dept. rather than students.
And anything else people would like to add would be greatly appreciated!!
Thanks!!
Cheers
Jen
Not sure where this thread should go, but anyways......
Looking for your devine experience once again
I'm interested in hearing from anyone who has a boarding house in inner Sydney. We were never looking for a boarding house, but something has come up that I don't want to just let slip by without doing all the research I can.
Some of the issues I'd love to hear people's thoughts on:
1. Finance!! What are the options? My understanding is this must be treated as a Commercial Property (it's zoned residential and is a large house - all the rooms are being used as bedrooms). What's the highest LVR people have been able to get for Boarding Houses? We would need to use the income for serviceability purposes (it's approx 10% gross rental) - so trying to say we're buying as a PPOR is not an option.
2. Does anyone have any experience with SEPP 10? (State Environmental Planning Policy No. 10 - Retention of Low Cost Accommodation) - which basically puts alot of restrictions on being able to demolish/alter/strata/or change the use of the property without Council approval. The Suburb falls into this policy, and I believe the house. The contract says "Council's records indicate this property may be a Boarding House. Consequently, the property may be subject to SEPP 10 which aims to facilitate the retention of low cost rental accommodation." I think this policy is a large factor in the current price of the property. We would be keeping the property as a boarding house for quite awhile - but in terms of the future, it's a nice period terrace from the outside so being able to convert it to a house or use the large land in the future would greatly increase the CG - however how hard is it to get approval with this policy?
3. Council requirements (eg. fire safety, etc). Where can I find the actual laws regarding boarding houses inner Sydney?
4. Peoples general experiences with boarding houses. Most of the tenants in this house (currently) are housing dept. rather than students.
And anything else people would like to add would be greatly appreciated!!
Thanks!!
Cheers
Jen