How to set up a boarding house?

[Tim86]

Hi, a boarding house setup really appeals to me due to the high rental return that is achievable. I'm wondering if anyone knows what it would take to set up a boarding house in Brisbane?

(1) Would you be better off just purchasing a boarding house?

http://www.realestate.com.au/property-other-qld-salisbury-113261207
http://www.realestate.com.au/property-unitblock-qld-spring+hill-116594255
http://www.realestate.com.au/property-house-qld-ipswich-116468387

(2) Or would you be better off buying a house that can potentially become a boarding house? (One big advantage of doing this would mean that you could borrow a full 80% of the purchase price as it starts off as a normal house. However when you purchase a boarding house outright doesn't it get classified differently by the bank and you can only get a 60% lend? Does anyone know the answer to this one?)

(3) If you can buy a house to become a potential boarding house what sort of zoning do you need? Do you buy low medium residential and then get it approved for a multi unit dwelling? Or do you buy a property already approved as a multi unit dwelling?

(4) How do you get it approved? So you get the right zoning, but then how do you get approval for 10 bedrooms, or 20 bedrooms? Etc... And what does that approval depend on?

I've found some information here but it doesn't really explain everything http://www.brisbane.qld.gov.au/plan...ntial-projects/dwellings/multi-unit-dwellings


Any answers are appreciated.

 

[willair]

Just from the sidelines Tim,, but some people don't even tell the BCC-Insurance Company no-one they just go in blind till the problems start as they always do,of the 3 links the only low risk based on land value alone would be spring hill,nothing wrong with where you invest but the problem-tenants factor would be scalable no so much in your area or the inner city blue chip,but 35 rooms with 48 different people in that area would upend your stress levels real quick even on 1,120sqms..imho..

 

[Truly Exotic]

ive had a look at boarding house setups in Bris, GC, Newcastle, and would like to do it eventually.

1. you can buy an existing one like in your links, then its the same as buying a business

2. buy an existing one and extend it

3. buy a big house and turn it into one

the problem with 3 is that the regulations/council you have to overcome is numerous, if you can do it then its a gold mine

obviously being a boarding/backpackers, its gotta be a good location which is expensive,

i ve had and recommend a look at old dorms that used to be used by police force etc. they are usually located well, are huge, and have most faciliites setup, and then you can turn into boarding/backpackers

then you have to worry about whether you are going to live on site or hire a manager or get a long term customer to look after it (in exchange for free board etc)

 

[Tim86]

3. buy a big house and turn it into one

the problem with 3 is that the regulations/council you have to overcome is numerous, if you can do it then its a gold mine

Thanks for the replies.

I'm wondering if you know what the regulations and requirements are exactly? If I started off with for example a 600m2 block in a place like annerley with an old 4 bed queenslander on it, that is zoned LMR, what would it take to get that approved as a boarding house?

I'm guessing there would be fire department requirements. Possibly re-zoning requirements? Possible registration with Fair Trading? Etc...?

Also where did you find the old police accommodation etc... advertised? What zoning are you looking for exactly?

And does anyone know what the maximum lend % would be on the purchase of a boarding house?

Thanks

 

[coastal]

There would be some sweet commercial property deals around Brisbane for that sort of change

 

[Tim86]

There would be some sweet commercial property deals around Brisbane for that sort of change

What type of commercial deals?

 

[Terry_w]

You would have to apply for development consent and to get this you would have to meet safety regulations relating to fire resistant material, fire escapes etc and other regulations and laws such as the Boarding House Act - in the state of the house, for NSW see http://www.austlii.edu.au/au/legis/nsw/consol_act/bha2012164/

 

[jerrybee]

I could have sworn I've seen the one in the second link before. Not long ago, either, maybe 6 months back? I think they must have relisted since I don't think it's actually a new listing.

 

[Bentley]

Hi all. Together with a couple of friends we are also interested in setting up a student accommodation/boarding house in Adelaide CDB. We prefer to buy an existing low rise apartment building or low rise office building and do some refurbishment and convert it rather starting from ground zero, i.e buying an empty plot of land, and then build etc. I understand that the boarding house has to adhere to certain regulations like fire exits, security etc.

Any advise how I should move forward or who should I talk to? Thanks!

 

[willair]

I could have sworn I've seen the one in the second link before. Not long ago, either, maybe 6 months back? I think they must have relisted since I don't think it's actually a new listing.

I think you will find it was ,and under contract both times that I went and had a look,but from what I'm told both contracts fell over due to it being comm-finance-loans where you don't have many people with 350k sitting in their back pocket ..imho..

 

[HeadsOnBeds]

Hi, a boarding house setup really appeals to me due to the high rental return that is achievable. I'm wondering if anyone knows what it would take to set up a boarding house in Brisbane?.

I own a few a BHs. They're not just IPs there more of a business. Employees, customers, etc. Not really something you can hand off to PM. Would be interested to hear differently on PMs though!

Can be a good investment. I've looked at setting up from big old buildings but if not already registered the hoops to jump through are many. Fire, MP 5.7 , disability access just to mention a few in QLD.

 

[willair]

I own a few a BHs. They're not just IPs there more of a business. Employees, customers, etc. Not really something you can hand off to PM. Would be interested to hear differently on PMs though!

Most that are over a ten one bed small kitchen-bathroom set-up have someone that lives within the complex who takes care of the rent from all the tenants,he-she gets free rental or rental at a lower cost-or they just pay direct into the landlords bank per week..imho..