Found this property - high yield BUT

Serious question.

How much extra would the council approved brothel license add to the value of the property?
Would it simply be a commercial style calculation?
 
When I was in the bank we managed to finance one. But yes, very difficult.

I remember my boss highlighting the three "F's" to me.
If it floats, flys or F****.... rent it.

They are particularly difficult to value, as there is little sales evidence to support any increase in value for the licence, and usually a down graded value is applied as they are "undesirable".

I certainly hope the seller doesn't blow his money...

Sorry... :eek:
 
Yes lender policy on these kind of securities is very messy as it attracts an extra PR risk to them apparently. Definitely would be a commercial loan.

Oh and I must say I like the red/yellow lighting in the picture :)
 
A little OT, but not too far...

When I was 18, a good mate and I worked together for a nice guy with some seriously dodgy connections. (Many of whom you'll hear about on the news in Perth on a regular enough basis, even moreso in the late 90s. A couple of them have terrible gravy-stain goatees)

One day our boss takes us to a strip club during work hours, while some junior staff stayed in the shop, not unusual funnily enough.

At the club, after the show, the owner came and sat with us and explained how he needed to transfer ownership of the business to someone else's name. It wouldn't cost us anything, we'd earn an income from it, and we'd get all sorts of bonuses like drinks and lapdances and whatnot. This was the craziest thing that these two naive 18 year olds had ever heard, our minds boggled at the possibility of "owning" a strip club.

Somehow, luckily, we didn't enter into any arrangements with this "legitimate businessman." I imagine the last 12 or so years would have been pretty different if we had.
 
I met a person who was in the process of opening one up a few years ago.

Turns out they are quite expensive to open (not including the licence).

I was surprised as I am told they are just rooms with a shower. Though I think she had something a bit more OTT in mind, pole dancing etc.

*on an unrelated note, she was a stunner, said she worked in Stilleto?*



In all seriousness though, would it be possible to purchase and rent as a room to students? I imagine the rental return would be phenomenal. Add a kitchen or just feed them from Thai-la-ong of Thai-tanic :p. How much is it selling for? I couldn't see the price on my phone.
 
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