I'm looking at buying a motel in a small rural town in NSW. It's 10 rooms that have 1 double & 1 single. Is it likely the council will let me strata title them? If so, what costs might I be up for? I suspect they would benefit from having kitchenettes installed. They would be effectively be studio apartments. I'm not too sure if this is limitation vs 1 bed units. I'd be paying around $300K for it.
Strata Title Motel
- Thread starter lwright
- Start date
Is there a manager's unit as well? That may be the sweetener.
What other facilities does it have? eg: commercial kitchen/laundry/pool?
Is there additional land?
What does the zoning allow? Can you have units under the current zoning?
Is it a viable business as it stands (quite small with only 10 rooms - owner/family operated without fulltime staff).
Can you tack on another floor or additional rooms to make it more attractive to a better operator?
What other facilities does it have? eg: commercial kitchen/laundry/pool?
Is there additional land?
What does the zoning allow? Can you have units under the current zoning?
Is it a viable business as it stands (quite small with only 10 rooms - owner/family operated without fulltime staff).
Can you tack on another floor or additional rooms to make it more attractive to a better operator?
Thanks Scott,
Yes it has a 3br managers unit as well. No pool. Has kitchen, laundry, liquor licence.
The land is 1300sq but the 2 buildings do take up a fair bit of that. It's zoned residential. It's leased to an operator for 3 years + 3 year option. I think it would be viable as is.
The 3yr lease will give you holding income until the option period so you can get into position in yr 2 with plans for the council. The DA should run for five years so it will be valid beyond the end of the option should it be exercised.
Couldn't I just get the DA then sell it on with the lease still running? Or alternately sell rooms with guaranteed income (i.e. a share of the lease).
