Cassie Sainsbury has been in the headlines as well as the parlour she allegedly worked at in Kingswood Inside the brothel ‘where accused drug mule worked’ Interestingly enough my folks were looking at that very same parlour as an investment property when it was on the market a few years ago. I can't remember the exact price or rent but the yield was good and there was good redevelopment potential. In the end they didn't go ahead as: - It was a sale and leaseback - Concern over possible unsavory characters such as bikies and consequent risk of fire bombings etc. They ended up with going for an industrial unit at Mt Druitt that has done very well instead. The headlines reminded me of the road less traveled. Anyone on here has experience with brothels as property investments? How did it perform? Any issues?
I have had experience with a few brothels. One of my clients has purchased 2 commercial buildings which are used as brothels. For a strange reason the valuations always happen very quickly.
We've done half a dozen Dep Schedules in them. Lots of cheap bathrooms and crappy furniture that looks best in low light. First thing in the mornings is the best time for the QSs to go there, but even then they have had to sit around waiting sometimes to inspect all the rooms. QSs are pretty conservative so they probably don't enjoy the sitting around bit - they usually sit in the staff area and no doubt try to make awkward small talk with the girls while they wait.
An agent I know once listed a house where a lady operated from her own home. The agent waited outside in her suit, sitting beside a chap who was early for his appointment.
This thread is loltastic. Curious if brothels and strip clubs actually make a decent income or as if theyre good as commercial tenants?
I do know a few who have a brothel in their portfolios. The tenants use their own contractors for repairs, cause minimal disturbance, timely with rent and due to the difficulty in achieving a DA on another site, sit pretty on their lease. Issues arise if you have shonky operators, working without consents in place and flouting the regs - increasing your risk by the lease being broken.
If I realised this sort of entertainment value was in this thread I'd have asked was it a stand up performance or a flop? Anyway, my curiosity was piqued enough to get my googlefu going. Seems like there have been some transactions 133-135 Bayswater Road, Rushcutters Bay, NSW 2011 - SOLD Retail Property #502157578 - realcommercial.com.au http://www.dailytelegraph.com.au/ne...k=c77be38d2a45f5cfea63adef67eb43db-1496741069 Interesting bit from the agent (talking up the sale?) “Brothel tenants will always pay very good rent, a very rare asset to hold because you get such a high return and they will always be in demand because of those licenses. They have to be a certain distance from schools, have rear lane access and the license stays with the property, not the owner.” ‘Australia’s best’ brothel has sold in Sydney’s Rushcutters Bay $5.3million for 364sqm B4 zoning at Rushcutter's bay with income of $320k - 6% yield. Not bad for a development site Another brothel nearby in Edgecliff looks like it may be turned into an apartment development http://www.dailytelegraph.com.au/ne...a/news-story/9b636f898114d32bd08fe1c8280389cf It's caused a stoush between the owners Brothel owners fight over Sydney property empire http://www.dailytelegraph.com.au/ne...k=c77be38d2a45f5cfea63adef67eb43db-1496741506 Although financing may be an issue - it looks likes banks run away at the whiff of the adverse publicity Westpac pulls out of brothel project Turns out this also sold http://www.dailytelegraph.com.au/ne...n/news-story/3ebea919b36833e570d19967505e98ab Sold for $17.6 million, leased back at $1.65million pa - 9.3% ain't bad. The site was purchased in 2001 for $1.7million. Reading between the lines I thought it sounds like it was sold to related parties. Anyone else who read the link agree? There have been some Melbourne transactions as well http://www.heraldsun.com.au/leader/...k=c77be38d2a45f5cfea63adef67eb43db-1496741591 Someone from Melbourne will have to say if $8.85million was below, at or above market? If you follow the links, you will see that there are all sorts of "colourful" characters involved. Looking at the sites involved in Sydney - they all look like prime candidates for apartment redevelopments.
