Purchasing a Boarding House

[Stewart]

Hi all,

I generally have focused on wraps in the past but have come across an unusual deal that has very good potential, would like some feedback on it if possible.

It is a multi room boarding house.

Two problems I am having to deal with are Insurance and Finance (surprise surprise)

Previous posts about student accommodation were great value.
If anyone has had any experience in this field or knows of any suitable Lenders or Insurance companies they could recommend, I would greatly appreciate it.


Thanks,

Stewart

 

[EricK]

Hello Stewart,
Not much in the way of a response to this one. Did you end up doing the deal?? I'm currently looking at a student accomodation development down in the valley. initial figures look pretty good.

 

[Stewart]

Hi Eric,

Have not gone through with it yet. Still waiting on some details and figures to come back to me.

I'll let you know how it comes along.

Cheers,
Stewart

 

[Glenn]

Hi Stewart,

Have you contacted the local council to see what provisions they require as far as fire/safety with boarding houses?

What sort of questions have the insurance companies asked and what requirements do they have about insuring the building? Fire exits/extinguishers/alarms?

I too am looking at boarding houses and am biding my time looking for one with a strong enough cash yield to compensate me for the extra work involved in managing it.

If you can elaborate a bit on what you are having trouble with you will get a bit better advice.

Good Luck

Glenn

 

[Andrew]

If anyone is interested Peter Markovic has a two story hawthorn brick boarding house located
in a **HIGH** growth area for $415,000. Returns $575 a week.

I personally don't want to deal with a boarding house but the numbers aren't bad. The house
in question is literally less than 1km from the CBD.

andy