Supercharged Cashflow - Build to Rent Specialist

Discussion in 'Development' started by MichaelCP, 25th Apr, 2020.

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  1. lynchy

    lynchy Well-Known Member

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    He did say 36-44 sqm so I'm assuming own kitchen and living

    Guessing your student accom has neither?
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    Could still rent a 1 bed apartment in CBD for cheaper?
     
  3. wombat777

    wombat777 Well-Known Member

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    If build is $600k for 5 rooms plus common spaces then build cost works out at around $120k per room (including common spaces). So an 8 room build would be around $960k and 10 room perhaps $1.2M.

    Are the build costs turnkey? ( including floor coverings, driveways, parking and landscaping )

    What size is the internal common space for the 5-room dwelling?

    (I have two sites in Moreton Bay council zoned Urban Neighbourhood)
     
  4. McCauley

    McCauley Member

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    Wow, great info Coxy89. I spoke with a package spruker in Briz last week who was touting his current $380/wk per room in inner Bris for "his supply" of new gen 5br rooming houses...
     
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  5. ParraEels

    ParraEels Well-Known Member

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    Spoken to few bank regarding boarding house loan and they are not touching this type of loan at even 50% LVR. No pre sales conditions mean NO to bank. At the moment.
     
  6. ParraEels

    ParraEels Well-Known Member

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    So basically you lie to the bank. Because if you tell them that you build boarding house then it will be commercial loan.

    Is your certier issue cdc for house with 5bedroom and 5bathroom or boarding house???
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    There are some banks that will do it, as commercial only.
    OP hasn't been on here since April so may not respond.
     
  8. euro73

    euro73 Well-Known Member Business Member

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    Can’t PC on PC .

    Publish Cr&p. Pull chains .

    In the end - boarding houses , student accommodation , whatever one chooses to label it - amazing yields but almost impossible to finance or refinance ... making it a no go for all but the bravest and deepest pocketed investors . If it was easy to borrow against everyone would have these types of properties in their portfolios .
     
  9. gach2

    gach2 Well-Known Member

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    Im just really surprised how much interest this post has got.

    Spruiking at its finest
     
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  10. gach2

    gach2 Well-Known Member

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    https://www.facebook.com/chathamprojects/
    Appears to be the facebook page

    Designs are not bad
    Location posted in this thread is rubbish - needs to be located undevelopment friendly neighbourhoods where studio apartments are limited and rent is high. Sydney North Shore etc where rents would be 500pw and building costs similar. Even if land is 1.5 - 2 million and construction is 1-1.2 million (assuming maximum in NSW is 12 before moving past class 1b) potential to get 10% yield and surrounded by homes similar in value. These projects work well at high budget (but not as high as apartment building)
     
  11. Gypsyblood

    Gypsyblood Well-Known Member

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    The reason I love propertychat is the different perspectives that brings and all sorts of people. Spruiker or not, this person also gave plenty of food for thought. I have a friend who leases out 3 bedrooms in a 5 bed house, gets 680 a week out of those (her exact figures) and lives there too. She told me shes going to lease the last one, and i advised against it from my knowledge now from PC. Not sure if she will still go for it too. That would bring in an additional 200-250 for her.

    I once went looking with a friend who needed to move into a sharehouse and saw many many houses that had more than 5/6 bedrooms leased out/all cash arrangements so imagine they are not paying taxes etc. My own brother during his student days at UNSW rented out what can only be called a shed in a house where there were atleast 5-6 independent boarders (he didnt have to go so shabby but he wanted the "student experience" ) I feel like many of these are operating today and just one disaster away from being a huge issue to a landlord. But they are operating due to some benefit. Real or perceived.

    I am quite interested to understand this myself as i currently have a property in werribee i am keen to subdivide and if such a place stacks up i would love to build a house with multiple independent rooms.
     
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