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New Build Boarding houses?

Discussion in 'Development' started by Jessproperty, 21st Jul, 2015.

  1. Jessproperty

    Jessproperty Well-Known Member

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    21st Jul, 2015
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    Location:
    Sydney
    I know on the old Somersoft forums there were a few people with boarding houses. We are looking at building a 9 room boarding house as well as a 20 room boarding house. These are located with 7 kms of Sydney CBD

    As these are new builds they will be self contained with toilet kitchens in each and built to BCA and fire safety requirements such a fire check walls, wheelchair accessible rooms emergency lighting, signage etc etc.

    Questions I have:
    Who do you use for insurance, and why type of insurance is required?

    Do you offer fully furnished or do tenants prefer to bring their own furniture?

    What are the pitfalls of boarding houses?

    Do you self manage when a onsite manager is required? We live 5 mins away from the 20room house and won't be working so will easily be onsite daily.

    Are there companies that manage or do people hire a site manager and check up on them frequently?

    Any info would be much appreciated!
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Location:
    Sydney
    Insurance is a killer. Finance is 65% and expensive.

    I have a couple of clients doing this - best to speak to actual developers who have done this from the ground up.
     
  3. Jessproperty

    Jessproperty Well-Known Member

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    Location:
    Sydney
    We are good for finance to build luckily.

    Wondering why everyone says Insurance is high?

    Thanks for your reply.

    Looking forward to some more input.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    If you have an onsite manager/caretaker, then you could 'easily' self-manage. Gone are the days of relying on the 'trustee' to collect cash every Friday and issue receipts.

    Most agencies will not touch boarding houses.
     
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  5. Jessproperty

    Jessproperty Well-Known Member

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    Location:
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    We are leaning that way to manage ourselves. We self manage about half of our properties now...only because we feel guilty taking them away from the leasing agent we used when we first started Investing. Once we have all the systems set up we will take them all over. I have seen some good property management program's to issue invoices and trust accounting, it looks promising!
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Which system are you considering using?