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What types of tenants for luxury rooming House ?

Discussion in 'Real Estate' started by evisional, 14th Sep, 2008.

  1. evisional

    evisional Well-Known Member

    Joined:
    23rd Aug, 2007
    Posts:
    51
    Location:
    Melbourne
    I have found very big house (6 bed rooms, luxury) in a outer eastern surburb (20km) in Melbourne, not close to any univerity . I probably rent out more than $600+ /week. However, I do not know what type of tenants will rent the house?How difficult to find tenants? Does anyone have experience with such big house? I do not think that normal family could afford such price. People will not like to share a big house. What is your solution?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    If you are looking at shared accomodation, you generally want to be close to something attractive (eg close to uni / hospital / CBD or major business district / beach / etc) ... and preferably very close to good quality public transport (trains / trams / etc).

    Otherwise, you are looking at executive rentals, which is a very different ball game again, and you'd need to keep the property in top condition to maintain the rentability - increased costs.

    Why doesn this house interest you?
     
  3. evisional

    evisional Well-Known Member

    Joined:
    23rd Aug, 2007
    Posts:
    51
    Location:
    Melbourne
    I am intereted in the house because of the big land and undervalued price. However, I need to rent out to maintain cashflow.

    How difficult to find excutive rent?
     
  4. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Evisional

    Your first port of call needs to be to some local PM's- give them a call and ascertain the current demand for 6 bed houses and their likely rent. Unless, as others have pointed out, there's a source of students nearby who are likely to want to rent your IP, then you're more likely to be pitching to large families or executive rentals.