Renting out residential house as commercial

Discussion in 'Commercial Property' started by Vanvir, 30th Sep, 2017.

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  1. Vanvir

    Vanvir Member

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    We have an idea on renting out our IP resident house into commercial like small medical practice or therapist since it's quite close to the main street.What is the process and is it worth it?what is the risk or draw back?who should we contact to find out?Thank you
     
    Vanvir, 30th Sep, 2017
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    what i the property zoning ?

    would want to be probably mixed use I think


    ta

    rolf
     
    Rolf Latham, 30th Sep, 2017
    #2
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  3. Vanvir

    Vanvir Member

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    Hi Rolf,it is shown on the house contract as R4 high density residential,does it mean we need to apply to get this converted to small medical practice?is it better ring the council to find out?cheers
     
    Vanvir, 30th Sep, 2017
    #3
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    You could most likely join with neighbours and sell it for a high density development. Why even consider a non-conforming use?
     
    Scott No Mates, 30th Sep, 2017
    #4
  5. Vanvir

    Vanvir Member

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    Hi Scott,We just bought this place so thinking to get the negative gear as much as we can.A bit hard to sell it to developer ainve it's not a big land to build high rise apartment.
     
    Vanvir, 30th Sep, 2017
    #5
  6. balwoges

    balwoges Well-Known Member

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    Most doctors these days prefer to work in a medical centre preferably with pathology and radiology services attached. Think the days of a single practice have just about vanished.
     
    balwoges, 2nd Oct, 2017
    #6
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Can always rent it to bad tenants..... guaranteed negative gearing..... :eek:

    The Y-man
     
    The Y-man, 2nd Oct, 2017
    #7
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    You need to apply for a DA before changing use of a residential premises even if zoning allows it. The DA will also be needed for the internal changes. The council will then likely insist on a range of costly mods such as parking spaces, drainage from carpark, signage, handicapped access and road access (no reversing permitted onto a road).

    You may also find your rent uneconomic v's other options. The annual rent will be under the GST threshold meaning you dont need to register BUT a medical practice etc can claim the GST paid back and when they compare your rent to a larger commercial site which does include GST you will be 9% more expensive.

    Speak to a town planner consultant and even a commercial real estate agency that handles small sites

    Have you spoken to the neighbours to find if they also want to sell - The multiple titles may be attractive to a developer
     
    Paul@PAS, 3rd Oct, 2017
    #8