Investing in Brothels

If anyone is interested in brothel investing have a read of:

Brothels are not risky business for all

 

There was one for sale near by recently, and I thought about it. But unfortunately I think its one of those things that the legal practice board would frown upon as a side business for someone on the roll.

 

You are probably restricting the interest of future purchasers and affecting the reputation of the area. This will reduce future capital growth.

 

Don't you wonder who all the customers are?

 

In a lot of businesses, owners can sample the product for discounted/mates rates (maybe for nothing).

Does that apply to this line of business?

 

Some of the more expensive ones in Brisbane were owned by lawyers and barristers a decade ago. QLD licensing regime is very strict and you need to be of good character. The town planning was quite strict on location also, assume that has not changed.

 

I have clients that own brothels in inner city - positive cashflow from day 1 on 100% borrowings and huge capital growth.

 

One for sale on the Sunshine Coast at the moment. Only "legal" one around.

 

Provided that you personally don't have any moral objection to the usage these can be some of the better CIPs.

Tenants are keen to enter net leases and undertake all maintenance using their contractors (minimises outside disturbance), if the premises has DA for the use, they are loathe to relocate.

Likewise, I know a few Lessors with these in their portfolios and they are the least hassle of their buildings

 

Place up the road has a sign out each day"Happy-Hour-12-2",cant get a parking space anywhere near that business model during that time..

 

I read an article about a week ago. A Brisbane brothel owner was complaining about all the laws and regulations they had to comply with. As a result a huge number of illegal brothels had popped up and it was difficult to compete. They indicated there was no way they'd want to try start this type of business from scratch in today's environment in QLD.

 

Our guys must have done close to a dozen Depreciation Schedules on them. Most quantity surveyors are pretty retiring sort of blokes, so I like to imagine their discomfort. Mid mornings are the best times for an inspection, apparently. Lots of pretty ordinary bathroom renos and tacky fittings - probably look better at night after a few drinks.

 

Have you worked out why it takes them a bit longer normal to finish these jobs?

 

It takes longer to walk around the furniture.

 

Why?

 

Extra floor adhesion?

 

Dude.

 

Would FBT be payable in these cases?

 

Friends with Benefits is only Taxing if someone becomes emotionally involved.

pinkboy

 

Agree. dude?