How hard is owning a share house?

[Aaron_C]

Of course, most illegal share houses never have problems of this magnitude, but what if.....?

I just don't get it.

I get it. It's because it costs a lot of money to do any works to a building to make it accord with BCA standards.

Most houses these days are classified as Class 1a - meant for occupation by a single family. Builders need to comply with these (relatively) easier standards when it comes to the actual building itself.

Houses used for student accommodation can be classified as Class 1b. This involves a far more onerous imposition by the BCA - hardwired smoke alarms (even for properties built long before the BCA), fire hydrants checked every 6 months, etc

And as you know getting any building surveyor, electrician, engineer etc is extremely expensive...why would anyone bother? Follow the money trail...

 

[wylie]

You have just agreed with me

Why take the risk of losing everything except the clothes you are wearing. Do you think the insurance company will bend the rules for "you"?

Actually the title of this thread should perhaps read "How RISKY is it to own a shared house if you don't follow the rules?" and the answer would have to be "very risky".

Somehow I think the poster isn't bothered by the legality, but more concerned about the actual running of the place. Perhaps this thread might give them pause and make them wonder "Do I want to risk losing everything to make more money?"

That is up to them. No way I would risk losing it all to make an extra buck, but that's just me.

 

[cimbom]

Just out of curiousity, where can I find a list of all the requirements for share houses in the ACT?

 

[Anon_]

Somehow I think the poster isn't bothered by the legality, but more concerned about the actual running of the place. Perhaps this thread might give them pause and make them wonder "Do I want to risk losing everything to make more money?"
.

Of course I'm concerned about the well being and safety of the renters if I go ahead with this.

 

[Aaron_C]

You have just agreed with me

I was never disagreeing with you. I am just outlining why people don't comply with the regulations.

 

[wylie]

Of course I'm concerned about the well being and safety of the renters if I go ahead with this.

Then, you need to do anything necessary to make it lawfully compliant. That might make it not such a great deal.

I was never disagreeing with you. I am just outlining why people don't comply with the regulations.

I agree. I was just being cheeky .

 

[Aaron_C]

Of course I'm concerned about the well being and safety of the renters if I go ahead with this.

Yes that would mean keeping the common areas clean among other things.

 

[Anon_]

Yeah all seems to be here:

Residential Tenancies (Rooming Houses) Regulations 1999
http://www.legislation.sa.gov.au/LZ/C/R/Residential Tenancies (Rooming Houses) Regulations 1999.aspx

Rooming house proprietor responsibilities
http://www.sa.gov.au/subject/Housin...tor/Rooming+house+proprietor+responsibilities

But I'm surprised that there seems to be a lack of mention on fire safety though, apart from
"Keep their room in a condition that does not cause a fire or health hazard."

 

[Aaron_C]

But I'm surprised that there seems to be a lack of mention on fire safety though, apart from
"Keep their room in a condition that does not cause a fire or health hazard."

That's because what you are reading are the health regulations. The fire-safety provisions are building code-related, which is a different department of your local council.

 

[Anon_]

But TBH not sure It will go ahead anymore. Only because speaking this morning to agent they are already negotiating prices from some offers. It was meant to go to auction next month, but looks like will probably go to contract over the next few days. And it wasn't something I would have wanted to rush into purchasing.

 

[Anon_]

That's because what you are reading are the health regulations. The fire-safety provisions are building code-related, which is a different department of your local council.

Yeah I'm aware, but I thought there would be more emphasis.

We need to give the council a fire safety report prepared by the SA Metropolitan Fire Service

 

[kathryn d]

I don't know what price you were planning on buying this property for, but have you considered building a property with shared accommodation in mind?
Might not be much difference in price, when complying with an initial build rules , rather converting a property.

 

[goonandtell]

I don't know what price you were planning on buying this property for, but have you considered building a property with shared accommodation in mind?
Might not be much difference in price, when complying with an initial build rules , rather converting a property.

interesting idea, i would be a little concerned over resale. My cash is tied up but i was very seriously looking at a big place on the last round of purchasing, in the end we went with capital improvement potential via a subdivision property. I think our next crack at making a cash positive add with be a share house.

 

[Anon_]

If anyone was interested I've attached the plan and the price is around $550-580k. But as mentioned, I don't think I will be able to go through with it anymore.

 

[kathryn d]

interesting idea, i would be a little concerned over resale. My cash is tied up but i was very seriously looking at a big place on the last round of purchasing, in the end we went with capital improvement potential via a subdivision property. I think our next crack at making a cash positive add with be a share house.

Resale?
I never plan on selling.

We renovated a large house into 11 furnished, self contained bachelor suites.
Some are for students, but mostly for "next chapter in their life'" (aka divorce) Rarely have any vacancies.We are also not the cheapest place to rent. We have extremely flexible leases, and that is important to a lot of people.

 

[Aaron_C]

Resale?
I never plan on selling.

We renovated a large house into 11 furnished, self contained bachelor suites.
Some are for students, but mostly for "next chapter in their life'" (aka divorce) Rarely have any vacancies.We are also not the cheapest place to rent. We have extremely flexible leases, and that is important to a lot of people.

It's not even about re-sale per se...if you lose value because it is purposely-built student accommodation you will have less available equity/leverage on the property.

 

[Deltaberry]

http://www.heraldsun.com.au/news/mo...dream-demolished/story-fn7x8me2-1226276360648

Wylie - saw this article this morning and thought of you instantly.

Seems property investing is itself wraught with dangers of losing everything, even if you leave the property empty. Poor woman.

 

[wylie]

http://www.heraldsun.com.au/news/mo...dream-demolished/story-fn7x8me2-1226276360648

Wylie - saw this article this morning and thought of you instantly.

Why?

 

[Deltaberry]

Because the scenario is exactly as you said.

Woman in the article buys a house to be her retirement nest egg. Something happens to it (it gets bulldozed and burnt to the ground). Insurance company refuses to pay. She's lost everything.

Only in this case, she probably did nothing wrong.

 

[wylie]

Ok. I was confused and thought it might have had to do with my insurance (cracked slab) thread. I couldn't understand why it was in this thread, but I get it now .